At least Newt Gingrich had some honesty and weird vision. That's why the corrupt neocons got rid of him...
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This is the worst piece of tax legislation I have seen in my lifetime. Outrageous.
In the midst of a record $422 billion deficit this year (and, according to Goldman Sachs, $5.5 TRILLION in likely 10-year cumulative deficits), the Republican-controlled Congress yesterday passed a 650-page, 276 provision, $143 billion package of new special-interest corporate tax cuts. The big winners, according to The New York Times: "General Electric, Exxon Mobil, electric utilities, movie producers and agricultural producers." Not to mention big tobacco, which received a $10 billion buyout (which was originally part of a deal to subject the industry to regulation by the FDA but the quid was dropped from that quid pro quo leaving the industry with the handout but no regulation).
John McCain calls the legislation "the worst example of the influence of special interest that I've ever seen." Congress yesterday overwhelmingly passed the most extensive corporate tax legislation in the last twenty years, offering industries large and small huge new tax advantages. The legislation offers a textbook example of Congressional excess, further enriching already-profitable corporations and sneaking in dozens of costly pet projects in legislator's home states. Among the special deals in this bill:
$336 million for Hollywood.
$101 million for NASCAR tracks.
$44 million for importing ceiling fans.
$27 million for dog and horse races.
$11 million for fish tackle boxes.
$9 million for bows and arrows.
In an editorial today, the Washington Post said (http://www.washingtonpost.com/wp-dyn/articles/A25661-2004Oct11.html?sub=AR ):
"THE CORPORATE tax bill that Congress has sent to the White House rewards just about every special interest that retains a lobbyist in Washington. ... The bill that Congress has produced is monstrous in just about every way. ... In Friday's debate, President Bush said he would discipline Congress in order to reduce the budget deficit. If Mr. Bush cannot bring himself to veto this terrible bill, it will be hard to take him seriously." Of course, Dubya has no intention of vetoing this bill. It is payback time for Republican campaign contributors.
Dubya's last big tax cut, which consisted primarily of a reduction in the tax on corporate dividends (Dubya wanted to ELIMINATE taxes on dividends) over 50% of which go to the top 1% of taxpayers, was rationalized because of the supposed "double taxation of dividends" (once in the form of the corporate income tax and eventually later as dividends). But increasingly, because of the accumulations of special-interest tax deals like this most recent monstrosity, corporations are paying little if any taxes. (Over 50% of corporate income ultimate flows to the top 1% of income earners.)
The effective corporate tax rate went from 3.4% in 1979 to 1.8% in 2001 (so much for the Republican alarmist rhetoric about double taxation of dividends). By contrast, during that same time the effective rate of the social security tax (paid by middle-income wage earners) went from 6.9% to 8.4%. This is reflected most dramatically in the percentage of federal receipts that these taxes constitute. Payroll taxes have gone from 18.6% of federal receipts 40 years ago to 40% now. At the same time, corporate taxes have gone from 20.3% of federal receipts 40 years ago to 7.4% now. http://www.cbo.gov/showdoc.cfm?index=5324&sequence=0
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