DAMN DEMOCRATS

When Democrats Control Your Wallet...
Posted by Bobby Eberle

October 30, 2007 at 6:32 am
>> Printer-Friendly Version
There has been much gnashing of teeth over the Republicans inability to control spending. Once a core tenet of conservative philosophy, Republicans in Washington threw that plank aside in pursuit of pork and big-government ideas. Is it any wonder we lost? Americans don't need more spending and more government. We need less! I'm pretty sure the Republicans got the idea. (Being in the minority will do that.)
On the flip side, there is still one issue where Republicans have stood strong -- taxes. Just like the fact that government needs to be smaller, not bigger, taxes need to be lower, not higher. We pay far too much in taxes to feed an ever-growing government. Thankfully, Republicans have helped cut taxes over the years, and the country is better for it. Just take a look at the recent tax proposal by liberal Democrat Charles Rangel, and one will see why we can't let the Democrats win the White House. With control of Congress, the Democrats are one election away from grinding the economy to a halt.
Under the Bush tax cuts, we now see the deficit going down and tax revenues going up. Repeat... the deficit is going down... more money is coming in. Yet Rangel wants to "fix" the tax code. The only way to fix the tax code is to continue to cut taxes, and that's something that won't be coming from Rangel and other liberal Democrats.
As noted by Bloomberg's Kevin Hassett, "Last week, just in time for the Halloween season, House Ways and Means Committee Chairman Charles Rangel gave American voters a chilling glimpse of what U.S. tax policy will look like if a Democrat wins the White House in 2008."
For those of you wondering what the details of taxing the rich to pay for Democratic spending proposals might look like, Rangel, a close ally of Hillary Clinton, has provided a tour of the abyss. If the ``mother of all reforms,'' as he calls his tax plan, had a name, it would be Mrs. Bates. But, unlike Norman's mother in the Alfred Hitchcock classic ``Psycho,'' this lady is very much alive.
In terms of revenue, Rangel's reform would be the biggest tax increase in history. Compared to a baseline where President George W. Bush's tax cuts are extended and the dreaded alternative minimum tax isn't allowed to swallow millions of taxpayers whole, the bill raises taxes by a whopping $3.5 trillion over the next 10 years, according to the office of Representative Jim McCrery of Louisiana, the top Republican on the Ways and Means Committee.
The Heritage Foundation, in its analysis of the Rangel tax bill, notes that "In the current Congress, the Rangel proposal has no chance of enactment, neither in its current form nor in any recognizable variant. Its importance is as a policy statement of the chief Democratic tax policy writer in the House of Representatives, expressed in black and white. As such, it offers a useful glimpse of where tax policy is likely to go in the next Congress if the chairman is allowed to work his will with a more sympathetic resident occupying the White House."
While complete details are yet to be released, the Heritage Foundation notes from the plan's basic roadmap that "taxes would increase by about a half-trillion dollars over the next 10 years. Much of that increase would fall on small businesses, especially on small manufacturers. The bottom line: higher taxes, fewer jobs, and lower wages."
First is Rangel's plan to "fix" the Alternative Minimum Tax (AMT). According to the National Taxpayers Union (NTU), "Rangel would get rid of the Alternative Minimum Tax (AMT) -- an ill-conceived plan that never should have been established in the first place -- but effectively resurrects it under a different name on the tax bills of millions of Americans. He boosts the standard deduction, only to erode the benefits of other common deductions. Families who would qualify as upper-middle-class in many metro areas would see their tax rates go as high as 44 percent, compared to the 35 percent or less they're now paying."
The NTU goes on to say that small business would be forced to pay higher self-employment taxes. In addition, the NTU notes that "Rangel claims that '91 million families' will benefit from the scheme, but that includes a spending giveaway to millions receiving the 'Earned Income Credit' -- households that don’t pay taxes anyway." So, part of his "income tax plan" is to give more money to people who don't even pay income tax. This is typical liberal class warfare, and it's not right.
The Heritage Foundation notes that there is a new 4 percent surtax on married filers with adjusted gross incomes (AGIs) above 200,000.
Having recognized the importance of lower marginal tax rates, Mr. Rangel would cut the corporate tax rate with his bill. But then he raises tax rates on individuals and small businesses, indicating a serious condition of economic policy schizophrenia.
Also, the surtax applies to AGI, not taxable income. So while jacking up tax rates, Mr. Rangel has also found a backdoor way to phase down the number of itemized deductions taxpayers can take. Perhaps Mr. Rangel can explain what he has against charitable contributions; or the deduction for state and local taxes; or the home mortgage deduction at a time when the housing industry is reeling.
In Rangel's press release, the Ways and Means Committee chairman states that the legislation will "provide tax relief to more than 90 million working families and cut the corporate tax rate to help American companies stay competitive internationally." Can someone please tell me what the phrase "working families" means??? Doesn't anyone who gets up, goes to work, puts in a long day, and makes money, qualify to be a "hardworking American?" Not according to the Left. Their "working families" phrase is code for a special segment of people that they can pit against the "rich" in order for them to win elections. It's pathetic!
Rangel goes on to say, "The provisions in this bill would reform the tax code to provide a greater sense of equity and fairness that is so critical to our voluntary tax system. ... It has been more than 21 years since Congress and the Administration rolled up their sleeves to discuss tax reform and during that time the tax code has become a jumbled mess of outdated and inequitable provisions that cry out for simplification."
The Republicans should jump all over this bill. It is a giant red flag of what liberal Democrats would do to America if given the opportunity. If Rangel wants to propose huge tax increases under the guise of "fairness," then now is the perfect time for Republicans to fire back. If Rangel wants to "simplify the code," then let's do away with the code all together! The Fair Tax would do away with the income tax all together and shift the focus to consumption.
The more Rangel talks, the more it helps Republicans. Let's hope America is listening.