Sunday, August 7, 2011

Republicans Out to Destroy the Poor & Middle Class with Tax Code Revisions

Today on Meet the Press, the Republicans/John McCain cited the Republican Agenda:
1. End Medicare as we know it
2. End Social Security as we know it
3. Privatize Health Care
4. Tax Code: Change from the Progressive Tax to a Flat Tax
(click on picture)
We're all familiar with their views on their top 3 items, but let's talk about how they want to change the way we are TAXED and why all Poor and Middle Class Americans should be concerned.

Our current IRS tax system utilizes the Progressive Tax. Each year, each taxpayer is taxed on their Adjusted Gross Income (AGI). Everyone is allowed to take certain deductions (eg: dependents,earned income, education, healthcare, etc). The percentage of tax paid is based on your AGI into the Federal Tax Brackets. You must understand that you are taxed on the last dollar earned. That is, a person earning $83,000 is NOT taxed 28% on the entire amount. Instead, he is taxed 10% on the first $8,350 earned, 15% for the portion up to $33,950, 25% for the portion up to $82,250, and pays 28% ONLY for the last $750.

What the Republicans want to do is change from a Progressive Tax to a FLAT Tax. They are LYING about the Progressive Tax -- which is FAIR for all levels of income. And instead, they are laying out such nice terms for their proposal -- the FLAT TAX. "Our current tax system is unfair and archaic and too difficult to understand. Why not let everyone pay one flat tax." Such nice, flowery words. In reality, what this means is, they want the Rich to pay far less taxes and they want the poor, those who are barely surviving, many of our sick and elderly, to pay much more in Taxes. The Republicans are Brutal and Heartless!

They want to ELIMINATE the ability to take Deductions as you do today including deductions for your children and for low income tax credits. Today, understandably, those earning below the poverty level, are able to utilize these low income tax credits to significantly reduce their taxes. In 2011, the low income level for a family of 4 is $22,350. These families make only about $400 a week or about $1800 a month. Now think about their home and food costs. Think about their rent (obviously they cannot afford to buy a house). If their rent is only 700 a month, utilities only 400 a month, their car and insurance is only 300 a month, that leaves only 600 a month ($150 a week) for groceries, clothes, and everything else. We are not even taking anything out for taxes, healthcare, accidents, emergencies, phone, tv, cable, NOTHING!

When paying taxes, these families take out their justified deductions and pay very little in taxes, and sometimes receive tax credit at the end of each year. What the Republicans want to happen is, they will FORCE these families, who have NO MONEY TO SPARE TODAY, to pay a FLAT TAX -- a 10% - 25% TAX. Let's take this same family. They will NOT be able to take deductions or receive a family tax credit. Instead they will be FORCED to PAY between $2,235 to $5,588 a year in taxes. Can you imagine? Where are they going to get the money to pay these taxes? The Republicans and their supporters are outsourcing jobs offshore. They certainly are NOT creating jobs here in America.

At the other end of the spectrum -- the Rich Millionaires -- will, at most, only have to pay 25% -- this is, on average, over a 25% Tax Reduction for most of them -- a Windfall!! Additionally, Republicans, like Paul Ryan are recommending MORE LOOPHOLES for the Rich. Ryan is recommending "Elimination of Double Taxation of Savings." What a BOGUS name for a Tax Loophole. Here is what he is proposing. Today, most of the rich invest their excess money into Tax Shelters. If they are investing After Tax dollars, this portion of the money remains invested "Tax Free." The only portion of these monies taxed is the earnings and dividends. These rich millionaires pay taxes on these dollars, as they should because this is earned income. Ryan, using his Republican "Save the Rich" mentality, suggests these earnings are "double taxed." (What a load of crap that is!) and NOW he wants the Rich to get even Richer by NOT taxing them on these earnings. Do you get it? They shelter the money, it grows exponentially, then he DOESN'T WANT THEM TO BE TAXED ON IT.... All under the name "Elimination of Double Taxation of Savings."

Do you see what Ryan, McCain and the Republicans are doing? They are AGAIN protecting their backers, the RICH/BIG Business and they are AGAIN hurting the Poor and the Middle Class. They LIE by putting pretty words around their Outrageous plans for the future. Their plan: To WIDEN the GAP between the Rich and the Poor -- the Haves and the Have Nots!

MY FEAR: What will happen to the Elderly, the Sick, the Poor, the Jobless if the Republicans ever get back in Power! We need to be ever vigilant of what the Republicans are proposing, for if they ever get back in power, WOE TO ALL OF US!

1 comment:

Anonymous said...

I think a flat tax is fair, considering that the top 50% of income tax filers pay 96.4% of federal income tax revenue (per tax - a non-partisan think tank). To me, that means that 50% of our population is skating by, scot-free, without contributing one thin dime to the coffers. Is that really fair?

Everyone uses the roads, everyone should help pay for them, regardless of how much they do or do not earn - my vision is that 100% of the people pay 100% of the taxes. I mean, seriously, you think that is is unfair that a millionaire shells out $250,000 and a GED unskilled laborer shells out $2,000 under the Flat Tax? Seriously? What, only the wealthy should pay? "From each according to his ability, to each according to his needs." - Is that your belief? Marx would be so proud....

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