Democrats call for ending tax cuts for rich
Do you think Democratic Presidential candidates will be able to get away with the “tax the rich” message without dealing with the core problem of outsourcing of jobs to cheap overseas labor markets and illegal immigrants driving wages down?
USATODAY-Democratic presidential candidates Thursday called for ending tax cuts for the wealthiest Americans in a debate focusing on domestic issues related to minorities.
June 30th, 2007 at 5:05 pm
Quote from article
en. Barack Obama of Illinois said, “The Bush tax cuts — people didn’t need them, and they weren’t even asking for them, and they ought to be relaxed so we can pay for universal health care and other initiatives.”
New Mexico Gov. Bill Richardson, who is Hispanic, agreed that marginal tax rates for upper-income Americans should go up but said he would use revenue to provide tax cuts to middle-class families.
The candidates also complained that the Supreme Court’s balance had been tipped by Bush’s appointees against average working Americans and racial equality in educational opportunities.
======================
What I agree on is that tax cuts on the individuals weren’t the best choice but what else would democrats agreed to? No person, no matter how low his wage, should be exempt from tax on his income if there is going to be a tax on income.
By the way, they aren’t. The people who pay no income tax pay a higher percent of their income in taxes than most people because they live paycheck to paycheck and don’t save. They pay 7.5% payroll, 8% sales tax in most states, high fuel taxes, about 35% in hidden taxes and compliance costs in the prices of what they buy, and then pay phone and home heating taxes.
For anybody that invests or saves, they pay a lower percent of their income for tax. Yet, these democrats are calling for, in some cases, changes that will make prices even higher.
Take a tax on the wealthy, they can move the money offshore, shelter it, buy tax free securities and only pay tax on a small portion of income and on hidden taxes in what they purchase.
With Business, they just pass the tax on in the prices or close or move offshore. All those things reduce the buying power of workers with higher prices but, they sound good and in the short run often do cause a spurt in tax revenues until the two or three year lag factor balances things out.
So, why do they do it? Simple, the 1/2 of the people who don’t pay income tax think they are getting a good deal because they have never been taught in our high schools, as they grew up, basic economics and how governments are funded and how businesses pass all costs to the consumer or how the wealthy have options lower wage earners don’t have who live paycheck to paycheck.
Look for tax revenues to rise if the Democrats sweep Congress and get enough seats to block the filibuster and enough votes to seize the White House. That sounds good, doesn’t it?
Yet, it isn’t good news if those tax revenue increases are short lived and 3 or 4 years later even more business is leaving and more people who invest are leaving or sending their investment money overseas or buying tax free securities to avoid the taxes.
Since they also plan on increasing spending on social programs, it could make things even worse when the 78 million boomers start retiring in mass and draw from social security and Medicare. If they were calling for reform of social security and Medicare, and also for tax reform that simplified the tax code, they might pull it off.
Business pays as much or more in compliance costs than they do in taxes. Often, when they can cut their tax bill to a percent or two, they will have spent 400% to 700% more than that to reach that low level of tax. That means that with a simple, low cost compliance, few exemption, tax code, we could actually collect twice as much in taxes and they would still have higher after tax profits that would lure investors back to our shores.
Ireland taxes their higher income at a level even more than we do. Their 42% rate (20% on lower wage workers) however, is offset with low corporate income tax rates and a cap gain tax rate that is 1/2 that income tax rate. Those things encourage the wealthy, well educated, to get their “income” from investments in business which creates the jobs and demand for labor that drove wages up 300%.
If the Democrats would just use Ireland (lots of social programs there) as a blueprint and adjust it for our differences, such as more defense spending, they could be heroes to both business and workers. For that matter, so could the GOP who actually used to try to get those things before they caved on so many of their principles.
So why don’t the Democrats do that? Simple, it is not in keeping with socialism which demands centralization of power and wealth redistribution.
June 30th, 2007 at 5:27 pm
This is about as stupid as it gets…..I’m not rich and I think this really goes to the core of the left wing.
Anyone out there ever work, or know someone else, who’s worked for a poor guy? How about a poor guy who started up his own small business? No? Gee, isn’t that a surprise!
Like it or not, the folks considered “rich” are the same ones who invest their hard-earned money so people not so “rich” can do things like WORK.
As soon as we eliminate the incentive to invest, these people will put their money right back in their pockets and EVERYONE will suffer. The left just doesn’t get it. If we’re to live in a capitalist society, there will always be those better off then others, but even the less well off gain. If anyone doubts that, look at the standard of living of the poor since Ronald Reagan cut taxes. You’ll find they’re considerably better off now than before those nasty “rich” people were allowed to keep more of THEIR money.
To most of the Democrats, and many RINOs, we should live in a society where redistribution of wealth is the law of the land. They’ve completely forgotten the Founders warnings against this very idea!
Get ready for some hard economic times……
John Konop for U.S. Senate - It’s time we stopped spending so much and tried to save a few dollars!
July 1st, 2007 at 10:33 am
They need the money to pay their $4400 pay raise.