02 November 2005

having your head...

In addition to the limits on write-offs for mortgage interest, the main elements of the proposals would abolish the alternative minimum tax, erase deductions for state and local income and property taxes, restrict tax-free employer-paid health insurance, and reduce the deductions that many taxpayers can claim for charitable donations.

"Panel Urges Big Cut in Mortgage Deduction", New York Times, Wednesday, November 2, 2005

In addition, The top tax rate for the wealthiest taxpayers would be lowered, to 30 percent in one alternative, and 33 percent in the other, from 35 percent now.

Mr. Bush, in theory if not in practice, put this panel together. Besides the changes mentioned above on personal income taxes, it recommends changes for business:

The plans would lower the top tax rate for businesses. One plan would let businesses write off the cost of investments in plants and machinery in the year of the cost, a system known as expensing, and would disallow writing off interest payments.

So, the vast majority of taxpayers, including Bush's base, get the shaft again. Yet, the wingnuts have time to scream about a Supreme Court appointment, same-sex marriage, and abortion rights that effect a small portion of the population. Will they scream that they are going to be poorer again?

More and more I believe that a straight forward tax rate on individuals, no matter what their income, and businesses, no matter what their size, would be the fairest system of all of them. It would generate more income for the the US; it would treat everyone the same; and there would be fewer complications.

Now, to finish the title of this post...

up your ass...

2 comments:

Glenn said...

I do agree with you that the new proposed taxes are ridiculous, but a flat tax is not a great idea.

Sales tax is a perfect example of a flat tax, which is I believe what you are suggesting. However, this is also a regressive tax, because it takes more out of a low income/poverty group's disposeable income, as most of their income is used for basic food and shelter.

The reason why we have always had progressive taxes on income is to least affect those who can't afford to pay it.

Anonymous said...

it takes more out of a low income/poverty group's disposeable income

But the low income/poverty group has no tax right-offs or loopholes as do the rich. Most people and corporations able to afford the taxes end up paying little or nothing at all with their tax lawyers and accountants.

The comment could be made that these spur on the economy, but the low income and middle income groups are the ones paying for the majority of the country's bills.

Oh, wait. No one is really paying the bills right now. We have the biggest deficit of all times. We're borrowing against the future. Who's going to pay these bills?

Mike