17 Apr 2011

Return to the Tax approach of 1913 – tax wages and capital gains at the same rate.

So why can’t we eliminate the AMT for those making less than $1 million a year, and add a tax on capital gains in the regular FIT that is at the same rate as the rate for wages?

6
15 Apr 2011

The More You Make The Less You Pay Taxation System

[caption id="" align="alignright" width="350" caption="iF: Tax Man by Howdy, I'm H. Michael Karshis, on Flickr"]iF: Tax Man[/caption]

As usual the Democrats have allowed the debate to be on the GOP idea of smaller government using GOP themes and solutions – ignoring the left – indeed, ignoring their past leaders like FDR and their stated objective of helping the non-rich and corporate.

OMB projects under current law (the end of the Bush Tax cuts) total revenues would supposedly exceed 19% of GDP after 2015, rising to 20% by 2021 – in a world where we spend 23% of GDP. While the fix is partly getting to a single payer health system with a prospective annual budget – the Vermont option 3 being discussed this year and I hope passed by Vermont – the other part of the fix is higher taxes on the rich and just getting corporations to pay US taxes.

As a percentage of GDP taxes were 8% of GDP from 1993 to 1996 and 9.6% of GDP from 1997 to 2000 as corporations paid real taxes. The GOP want to keep taxes at 8% of GDP which is the average (prior to Clinton’s enforcement of the IRS Code the highest was during World War II at 9.4% in 1944).

The claim that the rich turn over assets more at lower tax rates generating a bit more tax revenue ignores the fact the greater revenue being discussed occurs at Stock Market peaks – there is no proof that low tax rates produce capital gains tax that the Federal gov would otherwise lose.

A low tax rate on realized capital gains is “unfair”, but the solution is to tax unrealized gains, giving a credit usable when realized, so that the affluent investors do not sit on unrealized gains, hoping that an estate tax removal means they never pay a tax on their investment gains. A low tax that collects billions, as advocated by the WSJ, is a poor substitute for a proper taxation system that collects trillions.

It is time to end “The More you make the Less You Pay” world of today, where for the 400 U.S. taxpayers with the highest adjusted gross income, the effective federal income tax rate—what they actually pay—fell from almost 30% in 1995 to just under 17% in 2007, according to the IRS.

Yes the rich pay more today under the lower Bush tax rates – but that is because they take a much larger part of the nations total income, so the lower rate applied to a much larger number gives a slightly larger amount of dollars paid in taxes – this is not the definition of fairness or of good taxation or long term funding of the gov.

We must reject the GOP demand that both individual income taxes and overall federal taxes remain a constant percentage of GDP—8% and 18%, respectively— regardless of top tax rates on salaries, small business and investors. It makes a mockery of the idea of a progressive taxation system.

5
06 Apr 2011

Making tax haven hidden income permanently non-taxable

So naturally the GOP now wants the lower tax rate AND wants to make the tax haven hidden income permanently non-taxable, covering their butts via giving the average voter a tiny tax break – a ploy that was used in the Bush tax cuts.

5
05 Apr 2011

The goal is not, and never has been, fiscal responsibility, the goal is to end social programs

FDL poster “solai” has noted that “Last Friday Ari Fleischer, in a moment of honesty, said Mitch Daniels was a possible Presidential candidate because “he did a good job of getting rid of the surplus by putting in tax cuts”. Got that? Think back to Norquist who said the way

12
05 Apr 2011

Could we just move to the shutdown and be done with it?

Until we get the guts to go back to classic GOP levels of tax rates – the rates in effect during IKE’s terms – top rate 91% – or something closer to those rates – we will not solve our financial problems.

2
03 Mar 2011

Japan’s booming economy and heath cost pricing

Meanwhile Japan claims a low 1% GDP growth per year over 20 years to hide its prosperity and does this by doing the reverse of Greenspan –

1
03 Mar 2011

Japan shows the value of a trade policy/health price control

Seems if you are a rich country with excellent welfare and excellent infrastructure and a huge manufacturing sector, you can survive a real estate/banking crisis – and prosper greatly

0
26 Feb 2011

Dems need an adversary to oppose and stop union busting

We need to support unions – but we also need to acknowledge what is making the “public sector unions” such an easy target for the GOP.

3
23 Feb 2011

Restore US Sovereignty – Out of WTO Trade

We need A meme/framing/slogan that requires only 30 words and can be abbreviated for a sign in 9 to 10 words – the attention span of the voter is not long enough to read a really long full sentence.

3
24 Jan 2011

Korea Free Trade Kills Banking Reform Bill

KORUS-FTA forfeits our right to limit the size of financial institutions, forfeits our right to place firewalls between different kinds of financial activities in order to prevent volatility in one market from collapsing another, forfeits our right to limit financial services financial institutions may offer, it bans regulation of derivatives, it ban limits on capital flows designed to tame volatile “hot money.”

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