I said I would take on taxes, but there isn’t much to say on the issue of taxes when it comes to the two parties. I say this with a bit of disappointment; once again, the two parties do not make it easy to do a side-by-side comparison. This time it isn’t the GOP who fails to put in black and white their intent, this time it is the DNC that is a bit opaque. This being said, here are what the two parties have said about their plans for taxes.
DNC – Tax Plans
GOP – Tax Plans
|Individuals –||Individuals –|
|Democratic Party cut taxes for every working family – providing $3,600 in tax relief to the typical family over the President’s first term in office – and we are committed to extending the middle class tax cuts for the 98 percent of American families who make less than $250,000 a year, and we will not raise taxes on them.We support allowing the Bush tax cuts for the wealthiest to expire and closing loopholesWe are committed to reforming our tax code so that it is fairer and simpler, creating a tax code that lives up to the Buffett Rule so no millionaire pays a smaller share of his or her income in taxes than middle class families do.||Extend the 2001 and 2003 tax relief packages—commonly known as the Bush tax cuts—pending reform of the tax code, to keep tax rates from rising on income, interest, dividends,and capital gains;
Reform the tax code by reducing marginal tax rates by 20 percent across-the-board in a revenue-neutral manner;
Eliminate the taxes on interest, dividends, and capital gains altogether for lower and middle-income taxpayers;
End the Death Tax; and Repeal the Alternative Minimum Tax.
|My Notes:Starting with the ‘Death Tax’, most of us in the 97% will never have to worry about this, as we won’t be inheriting estates valued in the millions, just as an example in 2011 the amount exempted from tax was $5,000,000.
Interest, dividends and capital gains; really how many of us working for a living actually worry that are very small incomes from these amounts are being taxed at a lower rate or not at all? Do you worry? By the time we retire and are living on our Social Security and small retirement funds we don’t have large enough incomes to pay federal taxes, we are part of the 47% that no longer pay taxes because our incomes aren’t large enough. Again, this is a bit of dishonesty on the part of the GOP. Sounds good but really isn’t honest, or perhaps it is simply stubbornly stupid.Across the board reductions without reform makes no sense, especially in combination with repeal of the AMT.
Both the GOP and the DNC are correct, the tax code does need reform. That reform needs to look at how taxes are calculated, what deductions are fair and sensible and ultimately how taxes are paid. Today, all citizens pay taxes, income, payroll, state and local. These come off the top of our earnings before we can save for our future. Our tax code is ancient, unwieldy and frankly nothing more than a partisan bat to beat the other side with. The language of the DNC in their platform makes me as uncomfortable as the road to failure the GOP plan represents.
|Corporations –||Corporations –|
|We are also committed to reforming the corporate tax code to lower tax rates for companies in the United States, with additional relief for those locating manufacturing and research and development on our shores, while closing loopholes and reducing incentives for corporations to shift jobs overseas.||We will reform the tax code to allow businessesto generate enough capital to grow and create jobs for our families, friends and neighbors all across America.To level the international playing field, and to spur job creation here at home, we call for a reduction of the corporate rate to keep U.S. corporations competitive internationally, with a permanent research and development tax credit, and a repeal of the corporate alternative minimum tax.
We also support the recommendation of the National Commission on Fiscal Responsibility and Reform, as well as the current President’s Export Council, to switch to a territorial system of corporate taxation, so that profits earned and taxed abroad may be repatriated for job-creating investment here at home without additional penalty.
|My Notes:The DNC doesn’t really tell me enough on this one, nice words but doesn’t give me enough to go on. During the first couple of years of this administration a total of 18 Small Business Tax Cuts, but don’t let this go to his head of these some were only temporary; in total there are only 5 that were permanent.
You can’t have it all, but the GOP is right those we do business with our partners and competitors are mostly using a Territorial Tax system. It only makes sense we look closely at this system and weigh whether it makes sense for the US to move forward with a more balanced approach for the future.Big sticks aside, we must align ourselves with a global economy and encourage business to bring work and do business here, on our shore.However, you can’t have it all. You can’t have taxpayer subsidies, corporate welfare, loopholes big enough to float the Queen Mary through and lowered tax rates that mean the wealthiest corporations in the world pay big fat Zero’s in Taxes or worse, get refunds each year while at the same time entirely reforming the Tax Code.
That is it in a nutshell taxes from the two sides of the battle for our hearts, minds and pocketbooks. You wouldn’t think taxes would be such a battleground would you, but it is more than just who pays, it is a moral distinction these days.
Reagan had his Welfare Queen moment; with his derogatory description, he shifted our entire worldview from the nuclear dust bowl family in need of our support to the lazy usually black single mother, defrauding the system. Reagan’s legacy endures, he reshaped presidential politics and his worldview continues to affect the public’s reactions, including the issue of taxes; who pays them and how they are used to the public good. When I see signs and Facebook posts about taking the country back, I have to wonder, from whom and for whom. These are two random pictures from the conventions, notice anything?
We, the people continue to our own detriment to defend the wealthiest of this nation in their extremely successful efforts to rape us of all we work for, all we save, all we need to make life even semi-safe, semi-comfortable and semi-palatable for our future. We hold up signs demanding the college transcripts of the current President of the United States but shrug at the GOP Candidate paying 14% on an income of $13,000,000, more than many will earn in their life time.
Meanwhile, we find nothing disheartening in the idea that Veterans, old people and children might not receive even basic care they need under a Republican administration. Nearly half this nation would be disenfranchised and receive even less than they do today because they are part of the 47% that do not pay any taxes!
Taxes are not redistribution of wealth, nor are taxes class warfare. What taxes are is a the duty of each citizen to insure a civilized and safe society.
“I like to pay taxes. With them I buy civilization.”
Oliver Wendell Holmes