Wealthy Democrats don't pay their Fair Share of Tax.
Is our current system of taxation a Fair Tax on American Families? Democrats would have you believe that they want to tax the rich more and protect the Middle Class. Not True ! Democrats like the current system because their wealthy friends like the system, their wealthy Lobbyists help create the system over 40 plus years of Democratic control of the House.
Democrats impune the attempts of Republicans to simplify the tax code, lower tax rates and close loopholes. Democrats scream on one hand about the wealthy but they don't pay their fair share of tax at all. Tehresa Heinz Kerry and her Husband( John Kerry) paid a net 12% on their tax returns shared during the last Presidential race.
Millions in investment income and wages and they pay only 12%. On investment income they paid ZERO toward supporting Social Security and Medicare. Why? There is no payroll tax on investment income.
Democrats like to respond that they will pay when they pay the estate tax and that is why we should keep the estate tax. But wealthy Democrats who say that( like Senators Kerry and Kennedy) use other loopholes to avoid that as well.
Al Ose, Regional Director for Americans for Fair Taxation, wrote a recent letter pointing out the Hypocrisy of the left.
The Fair Tax eliminates the Estate tax, AMT, Capital Gains tax, investment income tax and all payroll and income taxes. The Fair Tax replaces that with a new revenue neutral tax system that has a simple National Sales Tax for all new products and services plus a very important Prebate system to make the whole package progressive as well.
Under the Fair Tax the Ultra Wealthy will pay their fair share. When the wealthy buy big houses and new cars, fancy landscaping, in-ground pools and spas, and Yachts, they will pay the Fair Tax. Unlike the estate tax or the capital gains or investment income tax, the Fair Tax has a portion which goes to Social Security and Medicare. Now the Wealthy will pay a fairer share of supporting Social Security and Medicare. The rest of us will take home 100% of our paychecks and have more spendable income under the Fair Tax. The Fair Tax expands the tax base, provides a monthly prebate check and gives American Families more control over all they earn.
If the Democrats are truly the protectors of the poor and of Social Security why do they continue to support the most regressive tax on the working poor and middle class. The Payroll tax for Social Security is only paid on wage income up to $90,000. Most Senators and wealthy Democrats like the Kennedys, Kerrys, Soros family and Hollywood celebrities stop supporting these crucial programs after $90,000.
It is time to change the tax system to the Fair Tax; This is Tax Reform that truly untaxes the poor and removes the most regressive tax from the Middle Class and makes the Wealthy pay a fairer share without the loopholes that their tax attorneys use to take money offshore, put in tax free trusts or use fancy writeoffs to pay a smaller percentage than working families do.
For more info visit; http://www.fairtaxvolunteer.org/smart/sketch.html
Democrats impune the attempts of Republicans to simplify the tax code, lower tax rates and close loopholes. Democrats scream on one hand about the wealthy but they don't pay their fair share of tax at all. Tehresa Heinz Kerry and her Husband( John Kerry) paid a net 12% on their tax returns shared during the last Presidential race.
Millions in investment income and wages and they pay only 12%. On investment income they paid ZERO toward supporting Social Security and Medicare. Why? There is no payroll tax on investment income.
Democrats like to respond that they will pay when they pay the estate tax and that is why we should keep the estate tax. But wealthy Democrats who say that( like Senators Kerry and Kennedy) use other loopholes to avoid that as well.
Al Ose, Regional Director for Americans for Fair Taxation, wrote a recent letter pointing out the Hypocrisy of the left.
Letter to the Editor.
You have my permission to publish this letter.
The enemies of the FairTax are the ultra-wealthy, those whose jobs depend on the current tax system, the National Retail Federation (NRF), and the uninformed.
One of the taxes eliminated by the FairTax is the estate tax. Warren Buffet, Bill Gates' father, Sen. Ted Kennedy, and George Soros have all requested that we keep the estate tax. If you look at their publicized financial records you will find that their money is protected from the IRS through trusts or foundations. For example Sen. Kennedy has $500 million in trusts based in Jamaica, Cayman Islands, and the bulk of it in Fiji. The Kennedy oil company operating in five states, once called Kenn Oil, is now named The Arctic Oil Royalty Trust. George Soros "holds the bulk of his billions in tax-free overseas accounts."
The ultra-wealthy pay lobbyists six-figure incomes to offer campaign contributions to legislators. The legislators in return make changes to our tax code that benefits the wealthy. The legislators use the contributions to get re-elected. If a legislator is against tax reform you should be able to figure out why.
The NRF doesn't want to collect the FairTax although they already collect a sales tax in 45 states and the District of Columbia. The FairTax would require only 16 million retailers to collect and remit the FairTax. Our current system makes them and every other business and individual to maintain records and report to the IRS. That is over 200 million reports to the IRS as opposed to just 16 million retailers reporting to their states with the FairTax.
Of those who become educated about the FairTax, 85 percent approve.
Privacy is one of the major benefits of the FairTax. The government and your accountant would no longer know more about you than your children do. Visit www.fairtax.org.
Best regards, Al Ose
Regional Director WI, IA (volunteer)
Americans for Fair Taxation
Resources:
Newsmax magazine, November 2005.
Do As I Say (Not As I Do) : Profiles in Liberal Hypocrisy by Peter Schweizer
The Fair Tax eliminates the Estate tax, AMT, Capital Gains tax, investment income tax and all payroll and income taxes. The Fair Tax replaces that with a new revenue neutral tax system that has a simple National Sales Tax for all new products and services plus a very important Prebate system to make the whole package progressive as well.
Under the Fair Tax the Ultra Wealthy will pay their fair share. When the wealthy buy big houses and new cars, fancy landscaping, in-ground pools and spas, and Yachts, they will pay the Fair Tax. Unlike the estate tax or the capital gains or investment income tax, the Fair Tax has a portion which goes to Social Security and Medicare. Now the Wealthy will pay a fairer share of supporting Social Security and Medicare. The rest of us will take home 100% of our paychecks and have more spendable income under the Fair Tax. The Fair Tax expands the tax base, provides a monthly prebate check and gives American Families more control over all they earn.
If the Democrats are truly the protectors of the poor and of Social Security why do they continue to support the most regressive tax on the working poor and middle class. The Payroll tax for Social Security is only paid on wage income up to $90,000. Most Senators and wealthy Democrats like the Kennedys, Kerrys, Soros family and Hollywood celebrities stop supporting these crucial programs after $90,000.
It is time to change the tax system to the Fair Tax; This is Tax Reform that truly untaxes the poor and removes the most regressive tax from the Middle Class and makes the Wealthy pay a fairer share without the loopholes that their tax attorneys use to take money offshore, put in tax free trusts or use fancy writeoffs to pay a smaller percentage than working families do.
For more info visit; http://www.fairtaxvolunteer.org/smart/sketch.html
posted by Merrill Bender | 8:16 AM
2 Comments:
This is one of the most disgusting aspects of our tax system; the fact that the more wealthy you are, the easier it is to squeeze out of paying taxes. I find it even more disgusting that politicians get out of taxation with the same loopholes, and they pay lip-service to making the wealthy pay their fair share.
That is so wrong.
This is one of the things I absolutely love about the Fair Tax; it blows their little schemes right out of the water by taxing consumption, not income, and it makes it so it's no longer beneficial for them to hide their wealth in offshore accounts. Unless they consume outside of U.S. borders, which is unlikely, they will now truly pay their fair share of tax. There will no longer be any manipulation of the tax code for their own selfish ends. And people like me will no longer have to carry their tax burden because of their refusal to pay.
Sounds like a sweet deal to me.
Yes, we have a nutty tax code that screws workers.
But whats the fix?
Fairtax does have some great parts -- if it worked.
But thats just the problem: Does the math actually add up?
Do you know that fairtax taxes the federal government, to pay for the federal government?
Neal Boortz wrote "The federal government itself will become a major taxpayer" (Page 148 in his Fair Tax Book,)
Tax the federal government to pay taxes to the federal government ??
Thats like me pretending I can pay myself 10,000 to cut my own grass. I can write the check, I can even deposit the check. And I can do this every day. But at the end of the month, I don't have 300,000 dollars
.
So the FairTax legislation can mandate the Pentagon pay the US Treasury 200 billion dollars a year for "sales tax"
THe treasury can even deposit those checks. But since the Treasury also WROTE those checks, its a wash. There was no money coming in from the government.
It wouldnt make any difference if the Pentagon wrote those checks, or got an exemption. The effect is exactly the same. The treasury does NOT have that 200 billion to spend. Its a phantom transaction.
Fair tax advoates have to "pretend" it can tax the federal government --- because they need to show that they can collect 2.3 trillion in taxes.
And thats just the point - they CAN'T collect that much. Partly because of this phantom transaction of taxing itself to pay itself.
But there are more reasons FT can't get 2.3 billion into the Treasury.
On paper, they can supposedly collect 2.3 trillion. But in reality -- which is what matters - they can not.
There are MORE things that Fairtax can't really tax:
Fairtax has to pretend it get people to pay 460 billion in taxes -- on their health care cost. That means taxing nursing home patients, cancer patients, heart bypass patients. It means everyone who gets medical care would pay a 30% or more sales tax.
Which doesn't sound THAT bad -- until you realize, some people will get tax bills of 50,000 dollars, while their yearly income might be 25,000.
How on earth would they even pay that 50,000 sales tax on cancer surgery and chemo?
People who get heart bypass surgery, for example, could easily get 20,000 dollars is SALES tax.
One family, who has a child with leukemia -- could get a 40,000 SALES tax.
One nursing home patient, who gets by on her social securty -- would get a sales tax of 25,000 a year -- plus more tax for any other medical costs.
Who is going to pay those taxes?
Insurance wont pay these extra huge taxes -- insurance caps out, and only pays certain things. Sales tax is not one of them.
Therefore, one way or another -- these patients will get exemptions.
Fairtax also has to pretend it can get 150 billion in taxes -- from people as a tax on their rent.
Fair tax has to pretend it can collect 150 billion by taxing people who buy new cars --- and pretend that new car sales won't drop because of the high taxes.
Fair tax has to pretend it can collet 200 billion by taxing people who buy new houses -- and pretend the huge tax on new homes wont diminish sales.
It can pretend all it wants.
I got news for you. Cancer patients, nursing home patients, and the parents of kids with cancer, are going to scream bloody murder.
So are renters.
So are new home builders.
So are car dealers.
So are millions of people. .
What will happen when an 80 year old woman with a broken hip is taxed 50,000 for her surgery and nursing home care? When she complains -- will a Congressmen say "Pay the tax, grandma?
No. The Congressman will show up at her nursing home and demand an immediate suspension of any and all taxes on health care.
So with all these inevitable exemptions -- Fairtax rate would have to be 60-80%.
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