That is why a flat tax with no deductions/exemptions is the only fair tax!!!

On Sun, Jun 2, 2013 at 4:33 PM, MJ <[email protected]> wrote:

>
> *The Rich Pay Most of the Taxes, Get Half the Tax Breaks. Democrats Are
> Outraged at Tax Breaks.
> *by Gary North on May 30, 2013
>
> The liberal *Washington Post* ran this headline: Richest 20 percent get
> half the overall savings from U.S. tax breaks, CBO says. The CBO is the
> Congressional Budget Office.
>
> The story began:
>
>  “The 10 largest breaks in the U.S. tax code will save taxpayers more
> than $900 billion this year, with a little more than half the benefits
> flowing to the richest 20 percent of households, congressional budget
> analysts said Wednesday. And the richest 1 percent of households, those
> with at least $327,000 in annual income, get an especially big haul ­ about
> 17 percent of the total savings, according to the report by the
> Congressional Budget Office.”
>
> We know what’s coming.
>
>  “Democrats seized on the new analysis, saying it provides fresh support
> for President Obama’s claim that limiting tax breaks for the rich offers a
> more sensible path to deficit reduction than sharp cuts to agency budgets,
> known as the sequester. The sequester, which took effect March 1, will cut
> U.S. agency spending by roughly $42 billion through Oct. 1.”
>
> Obama originally promoted the sequester. Now he is pretending the
> Reoublicans did it. But he signed the bill into law in 2011.
>
>  “Republicans, too, welcomed the report, saying it sheds new light on
> potential policy choices as lawmakers in both parties consider a
> comprehensive overhaul of the tax code. While Democrats want to limit tax
> breaks to generate new revenue for the government, Republicans want to
> return the money to taxpayers in the form of a simpler code with lower
> rates for everyone.”
>
> A simpler tax code? That’ll be the day!
>
> What are these tax loopholes?
>
>  “According to the CBO, the biggest tax breaks by dollar value this
> fiscal year are the tax-free treatment of employer-provided health
> insurance (about $260 billion), preferential rates for dividends and
> capital gains ($160 billion) and tax-free contributions to retirement
> savings ($140 billion). Deductions for state and local taxes ($80 billion),
> mortgage interest ($70 billion) and contributions to charity ($40 billion)
> are also among the top 10, as is the tax-free treatment of capital gains on
> assets transferred at death ($50 billion).”
>
> Do you think Congress, which wrote the tax code, will soon alienate all
> the PAC donors who use these exemptions? I don’t think so.
>
> Senator Snort is not going to vote to do away with the income tax
> deduction for mortgage interest payments.
>
> With ObamaCare in tatters, not ready for implementation on January 1,
> 2014, will Congress now abolish the tax-free income associated with
> corporate payments for health care insurance?
>
> The Washington Post then mentions this politically inconvenient fact:
> “Some argue that it might be reasonable for the rich to receive a large
> portion of the benefit from federal tax breaks because they pay an outsize
> share of federal taxes. According to the independent Tax Policy Center, the
> richest 20 percent of households paid nearly 70 percent of federal taxes
> last year.” Yes, “some” do argue this. That is because it’s true.
>
> The Washington Post reporter then adds the obligatory “but.”
>
>  “But the CBO noted that tax breaks are essentially equivalent to
> government spending, intended to encourage and subsidize various behaviors,
> such as buying a home, saving for retirement and giving to charities. The
> rich are likely to engage in those activities even without such “financial
> assistance,” raising the question of whether that money could be better
> spent on other priorities.”
>
> Got that? A tax break ­ taking less of your money ­ is a government
> subsidy. And it surely is . . . if you begin with the presumption that the
> federal government owns 100% of everyone’s income. Then when it lets voters
> keep some of their income, this is a government subsidy to you.
>
> It’s all a matter of perspective. It all begins with a view of who owns
> you. The CBO assumes that the federal government owns you.
>
> Fact: all tax laws encourage and subsidize “behaviors.” That is why
> Congress writes them. Congressmen want to encourage the behavior of getting
> special-interest groups to contribute to Congressional re-election
> campaigns. And let me assure you, this strategy works.
>
> Then what does the phrase “other priorities” mean? It means government
> boondoggles.
>
> I suggest this priority: cut taxes, thereby encouraging this “behavior.”
> Encourage taxpayers to decide what to do with more of their own money. But
> this priority does not appeal to Washington Post reporters . . . or to
> Congress.
>
>  Continue Reading on 
> www.washingtonpost.com<http://www.washingtonpost.com/business/economy/richest-20-percent-get-half-the-overall-savings-from-tax-breaks-cbo-says/2013/05/29/645f75c6-c894-11e2-9245-773c0123c027_story.html>
>
> http://teapartyeconomist.com/2013/05/30/the-rich-pay-most-of-the-taxes-get-half-the-tax-breaks-democrats-are-outraged/#ixzz2V57lqQVX
>
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brine
http://brineb.blogspot.com/

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