Friday, November 19, 2004
Bush talks all the time about creating an "ownership society." One where your average citizen would be more prosperous. Well, let's take a look at his latest tax proposals. Or, as I call them, the "If You Ain't Rich, You Ain't Shit" proposals.
Read the article first. I'll wait.....
Okay. Here are the two key paragraphs:
Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth, according to several people who are advising the White House or are familiar with the deliberations.
The changes are meant to be revenue-neutral. To pay for them, the administration is considering eliminating the deduction of state and local taxes on federal income tax returns and scrapping the business tax deduction for employer-provided health insurance, the advisers said. (emphasis mine)
Well, if you ever thought how it would be great to live as a lower-class denizen of London in 1857, now you'll get your chance! Because this "tax reform" is nothing more than a way to create a permanent monied class that pays little if anything into the national coffers. Meanwhile the average American worker will see more and more of their income disappear. Wow, that's real good leadership. Thanks, Ohio!
Seriously, this is a frightening prospect. It's not that I oppose the concept of lowering taxes on investments. But combined with the elimination of the state/local deduction and the deduction employers enjoy for provided health insurance, the impact on the avergage American is catastrophic.
Most Americans do not make enough money to truly benefit from the elimination of taxes on investment and savings. We work hard, pay our bills, and if we are lucky we can put some aside. Our investment in the market comes almost exclusively through our 401(k) programs, not idependent investment.
But there is a group that WILL benefit greatly from this: the hyper-rich who derive most of their income from investments. They don't pull down income in wage form, but rather through dividends, stock sales, bonds and the like. So with this "reform" they'll essentially pay no taxes on their income. How quaint...
And they'll pay for it by eliminating the deduction of state and local taxes from federal taxes that every working American uses to keep a little more money for themselves. That's money they use to heat the house, fill the fridge with food or put a pair of shoes on their child's feet. But I guess George W. Bush is okay with that, since Buffy and Tad will have more money to build a 90-foot schooner.
Oh, and don't forget that businesses will lose the health-care deduction under this plan. So now employees (middle-class Americans) will either have to pay more for health-care or they could lose it all together. So now even more income that average Americans earn will have to go to health-care, meaning less for basic necessities. All so that the elite can pocket more cash from their investment income.
This is wrong. On every level. Especially a moral level. Balancing tax reform on the backs on working Americans is offensive. There is no defense for this. The only "value" this represents is greed.
And it stuns me that states like Mississippi, Kansas, Alabama and others backed this man. Can't you see how he's repaying you? The GOP blathered on about gay marriage, pretended that Iraq is the bulwark against terrorism, AND YOU BOUGHT IT!! Meanwhile, he's trying to pass "tax reform" that only benefits his rich allies and corporate donors. And he's doing it by taking money OUT OF YOUR POCKET!!
He could have reduced investment taxes and eliminated the AMT by killing corporate welfare. Or reducing spending. But instead, George W. Bush is going to do this by stealing money out of OUR pockets. The Average American citizen.
This is truly a sad day for America.