GOP Tax Plan: raise taxes on the middle class, students and the elderly, so the rich can get yet more tax breaks

The GOP Plan Is the Biggest Tax Increase in American History, By Far

The big deficits in GOP tax plan aren’t a glitch — they’re the whole point. “Slashing taxes is going to cause big budget deficits. But the reason Republicans don’t really care is because they can use the resulting fiscal crisis to go after Medicare, Medicaid and Social Security.”

White House Says Cutting Meals on Wheels Is ‘Compassionate’

To pay for tax cuts for billionaires, the US Senate just repealed the credit for elderly and the permanently disabled.

GOP Tax Scam

  • Both the House and Senate bills dramatically lower the federal deduction for state and local taxes (SALT), making it tougher to raise funds for public schools. That means that you will be taxed on part of your income that was already taxed to support public schools.
  • The House bill also eliminates the tax deduction for student loan interest, taxes tuition waivers as income, and eliminates the small tax credit for teachers to buy school supplies.

Pray before raping

The could have added: “destroying the environment, deregulating Wall Street, making it harder for minorities to vote, damaging the neutrality of the Internet, concentrating media ownership in Trump-friendly corporations, reversing the New Deal, squashing unions, supporting neo-Nazis,” etc.

IMF Says Higher Taxes for Wealthy Good Idea. And These Billionaires Agree.

“A more progressive tax code, says International Monetary Fund, would both significantly reduce inequality and help grow the economy”

https://www.commondreams.org/news/2017/10/12/imf-says-higher-taxes-wealthy-good-idea-and-these-billionaires-agree

Quickie Link: Walmart Workers Cost Taxpayers $6.2 Billion In Public Assistance

Report: Walmart Workers Cost Taxpayers $6.2 Billion In Public Assistance

Walmart’s low-wage workers cost U.S. taxpayers an estimated $6.2 billion in public assistance including food stamps, Medicaid and subsidized housing, according to a report published to coincide with Tax Day, April 15.

Americans for Tax Fairness, a coalition of 400 national and state-level progressive groups, made this estimate using data from a 2013 study by Democratic Staff of the U.S. Committee on Education and the Workforce.

“It found that a single Walmart Supercenter cost taxpayers between $904,542 and $1.75 million per year, or between $3,015 and $5,815 on average for each of 300 workers.”

Senator Reuven Carlyle explains why he voted against the McCleary deal: the entire burden is placed on the middle class

Video: Sen. Carlyle’s McCleary Floor Speech


Reuven Carlyle explaining his opposition to the McCleary deal

(Excerpts)

70% of low income people in King County are going to see a tax increase.
There is a perception that this is about taxing rich folk in the big cities [but it’s not so].

There is not one business in this state that does not win in terms of lower taxes in this deal. And the middle class is going to feel it deeply and seriously.

The entire weight, the entire obligation, the entire bill is being sent to the middle class, seniors, working folk, renters, and so many others. We have lots of people who are, effectively, house rich and cash poor because we’ve had an explosion in the past 10, 15 years of value in homes.

To put all of that burden, in a state with the most regressive tax system in the nation, all of the burden, exclusively on the middle class . We’re better than this. We could have made it fair, we could have made it equitable, and we could have made it widespread.

We haven’t closed any tax breaks of meaningful size. We haven’t done anything. We haven’t asked anyone else [other than the middle class] to contribute. Hundreds of millions of dollars in business taxes will be reduced. Hundreds of millions in this deal. And yet a retired grandma in Ballard will see 100s of dollars of increase for a home she’s lived in for 20 years.

To put that entire bill on that grandma in the middle class is just not right.

This middle class property tax increase is just too much, too high, too unfair, and too narrowly applied.

Bloomberg: Sweden's economic miracle based on high taxes

Sweden’s economy has outperformed its OECD peers over the past two decades

High taxes, strong unions and an equal distribution of wealth.

That’s the recipe for success in a globalized world, according to Magdalena Andersson, the Social Democratic economist who’s also Sweden’s finance minister.

The 50-year-old has been raising taxes and spending more on welfare since winning power in 2014. She’s also overseen an economic boom, with Swedish growth rates topping 4 percent early last year, that has turned budget deficits into surpluses.

….

The numbers are compelling. Sweden has one of the world’s highest tax burdens, with tax revenue about 43 percent of GDP, according to OECD data. The equivalent figure for the U.S. is about 26 percent. Sweden’s economy has grown almost twice as fast as America’s, expanding 3.1 percent last year, compared with 1.6 percent in the U.S.

Sweden has the highest labor force participation in the European Union. Andersson attributes this to tax-funded parental leave and affordable daycare, which make it easier for both parents to work.

In contrast to most of its European peers, Sweden has budget surpluses. The EU average will be a shortfall of 1.6 percent in 2018, while the estimated deficit in the U.S. of 5.7 percent of GDP, EU Commission data published in February show.

A Reverse-Trump Tax Plan Delivers an Economic Miracle in Sweden

Voting, taxes and what it means to be an American

vote

Image: Gazettes.com

When your ballot arrives later this week, take a pause and before you vote, consider, what does it mean to be an American? As Americans, we are all in this election together. We are in this country, this economy, this culture, and this government together.

What is government? It is the comprehensive delivery of services upon which we all depend, including emergency responders to the wind storms last week, schools for our kids, health care for retired people and low-income citizens, protection from violence and terrorism, road maintenance, public utilities, food safety, the court system to protect private property and enforce contracts, and the regulation of the financial underpinnings of our economy. Literally every part of our daily lives, and of the private capitalist economy, is dependent on government services.

We don’t get these services for nothing. We pay for them, with our taxes. So let’s talk about taxes. According to the New York Times, pollsters have been asking Americans whether “it is every American’s civic duty to pay their fair share of taxes.” Every year, about nine in 10 Americans agree they should.

It is not just people’s opinions. It is their actions. Paying federal income taxes is done through a system of voluntary compliance. Sure, you might be caught by the IRS if you don’t submit your 1040. But the actual likelihood of this is so slim that some economists, weighing costs and benefits, claim that it makes sense for a “rational” person to evade taxes altogether. But we are rational people and 140 million of American households, that is, us, file our federal income taxes every year. Over four-fifths of total tax liabilities are paid on time. We do this because we all understand, intuitively, that if we want public services, we have to pay for them.

What people don’t like is tax avoidance. You pay no federal taxes, and you reap all the benefits of living in America. That’s what appears to be Donald Trump’s situation, which he terms as “smart” and we all know is just selfish.

It is also the habit of some of Washington’s largest companies. Microsoft has stashed away $124 billion in Ireland, Luxembourg, and Singapore. This maneuver enables Microsoft to avoid $39 billion in what the corporation should have contributed in federal taxes. Microsoft is joined by Pfizer, GE, and Apple as those corporations that have hidden over $100 billion each in tax havens, avoiding taxes in our country.

Compare that legal maneuvering to avoid taxes to the voting habits of Americans. Even in the face of the anti-tax rhetoric which politicians like to preach, Americans have increasingly supported taxation for government services. Thirty-five years ago, only about one in five state ballot measures to raise taxes passed. In the past decade, voters have approved half of tax-increasing measures on state ballots.

This public support for taxation increases at the local level. Last April, voters in the Everett School District approved both a levy and a bond for capital projects and technology. Last February, voters in Arlington, Edmonds, Lake Stevens, Lakewood, Mukilteo and Stanwood all approved school levies. Less than a year ago, voters in Gold Bar, Stanwood, Arlington and Warm Beach voted for property taxes to finance fire and police services, renovate fire stations, purchase equipment and fund EMS. Across the county, voters approved an increase in the sales tax to enhance Community Transit services.

These are our neighbors, our families and ourselves voting to tax ourselves so that our local governments, school districts, and fire districts can provide the fundamental services needed as foundations for our quality of life. We as citizens make the immediate connections to our shared local well-being – hence, we support schools, EMS, and fire protection.

We make the same connection with the federal government. We understand that taxes provide safety, security, education financing, regulation of food and drugs, environmental protection, disaster relief, national parks, Social Security, Medicare and Medicaid, occupational safety, negotiations with other countries, and the list goes on and on.

We get that. We as taxpayers pay for that. We are the patriotic ones. Not so for the people who avoid their taxes, or who applaud those who avoid their taxes, or the corporations which hide their money in tax-free havens in other countries. They are not patriotic. They are free riders.

Originallly published: a the Everett Herald

Quickie link: Tax evasion as a matter of principle

The Tax Evasion Double Standard: How US CEOs Are Withholding Revenue by Thom Hartmann

If I refused to pay any taxes until the US government lowered my taxes to a so-called “fair rate,” I’d almost certainly be arrested for tax evasion. But when The Washington Post asked Apple CEO Tim Cook about the billions that his company has stashed in tax havens around the world, Cook declared: “We’re not going to bring it back until there’s a fair rate. There’s no debate about it.”