Tuesday, October 13, 2009

Federal Taxes

Basically, there are three federal taxes on
individuals: the payroll tax paid by most
U.S. families and which amounts to around
15.3% tax rate; the income tax which amounts
to about 10% on most families, except up to
30% for the very wealthy; and the inheritance
tax which is in remission under the Bush tax
cuts for the very wealthy until 2010 when it
is to expire and be reinstated affect at most
2% of tax payers.

Republicans always decry the burden of federal
income taxes. However, interestingly they never
call for lowering the payroll tax which falls
heavily on lowerclass and middleclass working
families. It is from this tax which pays for
Social Security and Medicare and has been the
way the Republicans 2001-2008 paid the off
budget monies for the two wars and the
prescription drug plan. You see, they used
up the Clinton surplus and saddled the government
with a trillion dollar deficit, let alone the
collapse of Wall Street, Banking, and the
national economy, using the payroll tax of the
underclasses to pay for their off-budget spending,
while giving the tax breaks to the wealthy.
Republican tax relief always benefits the affluent.

It is not class warfare to say Republican tax cuts
disproportionately benefit the very wealthy. Cutting
taxes on the rich does not lead to economic growth.
We know far to well how our economy grew in the
BushII years, the repeal of Glass-Stegall. It was
not the tax cuts to the wealthy.

We know BushII's tax cuts were dishonest. Now, my
question is how dishonest will be the Democrats
and Obama. How much are they misrepresenting their
spending bills, especially the health care reform?
How are 25 million added to health insurance and we
don't have to pay for it. Obama tells us it will be
done by eliminating fraud, deceit, and abuse. Sure
thing? HOw many times in the last 60 years have we
heard that refrain?

Moreover, the CBO gives its estimate for the 10 years
apparently beginning in 2010. Yet, the reform doesn't
go into effect until 2014. Yep, there is that Washington,
D.C. funny banking at work again. If 2014 is correct,
as of this moment with the Senate Finance Committee
reported out bill, it would be important to have the
CBO score it for 2014-2024. Three or four years of no
expense certainly minimizes the cost. What was it that
Obama and the Democrats campaigned on? Transparency,
wasn't it? Where does the money come from?

Lefty Blogs