Comments on: Three Cheers For The Bush Tax Cuts

By: Terry

Terry — Sun, 21 Aug 2005 04:15:43 +0000

Consumption taxes as currently proposed would redistribute many billions of dollars upward from low earners to the rich and middle class. This is because as proposed, some forms of consumption are more equal than others. I like an overall flat tax, but since state and local taxes tend to be regressive, a federal flat tax must have some progressivity (which it does by exempting a certain amount of income) to create overall flatness.

State and local governments often use regressive taxes on the poor to subsidize tax breaks for the middle class and the rich. (Remember, states are in competition among themselves for more rich residents and fewer poor residents.) For example, in Michigan a bipartisan group of legislators proposed cutting school property taxes to 0.7 percent on all property. This was obviously too fair and balanced to prevail. Under the final outcome, rental property was taxed at 1.2 percent in order to give homeowners the low, low rate of 0.3 percent. Specifically, there was a universal school property tax of 0.3 percent, and a separate 0.9 percent tax on rental property. This separate tax on my rented home was more than $1000 a year. Tax-and-spend homeowners eagerly voted for this tax because it represented to them free money. Where was the conservative or libertarian outcry? There was none; the tax was a Republican creation.

By: HispanicPundit

HispanicPundit — Sun, 21 Aug 2005 03:24:06 +0000

There has to be some level of taxation for the poor, they too use government services.

But in general, I tend to like flat taxes (or consumption taxes, for that matter) more than progressive taxes, but I have my qualms with flat taxes as well.

By: Terry

Terry — Sun, 21 Aug 2005 03:10:18 +0000

But a lot of conservatives really don’t want to de-tax the poor. They complain that if people are de-taxed, they won’t be concerned with keeping taxes low for everyone. The Wall Street Journal has editorialized on this, calling the de-taxed “Lucky Duckies.” Go ahead and google “lucky duckies” and you’ll see exactly what I mean.

I think tax breaks and other government goodies should be directly tied to work. A childless adult gets a $30 earned income tax credit for working full time at minimum wage…and $300 if they work only half-time at minimum wage. That’s really nuts.

By: HispanicPundit

HispanicPundit — Sun, 21 Aug 2005 02:44:32 +0000

LOL. I am all for reducing taxes in general, and I am all for less regulation among the poor.

By: Terry

Terry — Sun, 21 Aug 2005 02:39:24 +0000

No, all we need to do is to de-tax and de-regulate the poor. I earn minimum wage and pay taxes I can’t afford. Rush Limbaugh says the poor aren’t paying enough taxes. After all, conservatives tell us that the more you tax something, the less you get of it. So if Republicans could just tax the poor some more, Rush would be happy and poverty could be practically eliminated. Republican governor Bob Riley proposed de-taxing the poor in Alabama and his fellow Republicans thought the idea was nuts.

By: HispanicPundit

HispanicPundit — Sun, 21 Aug 2005 01:14:30 +0000

Oh, damn, how could I have been so dumb, I see what you mean now!! Let’s all work together to decrease employement than, that my friends, is the true way to help the poor, the true democratic party way!!

By: Terry

Terry — Sat, 20 Aug 2005 20:22:50 +0000

Increasing employment isn’t necessarily a good thing for Americans working at the bottom of the economy. In fact, I hereby predict that both homelessness and demand on food banks will soon increase noticeably.

How can this happen? you ask. It’s very simple. Increasing employment produces increasing rents - this is well known in the real estate community. Millions of Americans work for minimum wage or something close to it. These workers will be squeezed when their rent goes up and their wage does not.

In my area, rents have already begun to increase. If they have not done so in your area, they will soon.

Republican policy toward the working poor? Forget about raising the minimum wage. Forget that it has lost 20 percent of its purchasing power since it was last increased. Never mind the fact that your standard of living is declining. Food is on the way!