Save Taxpayers $1 Trillion by Increasing Taxes: Democratic Agenda I
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The title of this Huffington Post column: 12 ways to save US taxpayers $1 Trillion. The funniest thing about this link is the sheer hipocracy and boldness of the claim (See http://bit.ly/9qyDSb). They are going to save the Taxpayers $1 Trillion dollars mostly by increasing taxes... Hmm. That only works in the case that you view all money originating with the Federal Government.
Anyway enough about hipocracy, lets see how they plan on doing it. These are recommendations put together by the U.S. Public Interest Research Group that target "the greedy" (See http://bit.ly/9G9bi0). They have outlined 12 issues of "public interest" that will "Save Taxpayers Money". There is so many falsehoods here that I am going to split it up into 3 posts. These first 5, have already been proposed by the Obama Administration.
1) Close Carried Interest Loophole: Tax venture capital, hedge funds and private equity managers with income tax rates not the capital gains tax rate as most of them are subject to now:
Would an effective increase in the Capital Gains Tax work to increase tax revenues? The net effect would be a decrease in the revenues coming from Capital Gains. I could go over the Laffer Curve and how we should be dropping Capital Gains Taxes to increase revenue, but Charlie Gibson said it better. Even Barack Obama acknowledged they wouldn't increase revenues.
GIBSON: And in each instance, when the (capital gains) rate dropped, revenues from the tax increased; the government took in more money. And in the 1980s, when the tax was increased to 28 percent, the revenues went down. So why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?Would we also do that for entrepreneurs build a business from the ground up and then sell it? Cannot fairness also precipitate a lowering of the Federal Income Tax?
OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness.
2) Eliminate Oil And Gas Subsidies: These are not true subsidies but instead a reduction of the tax rates to the Oil and Gas industry.
Federal and State Corporate tax rates make the US the highest corporate tax jurisdienction in the world. Higher than Japan, Sweden, China and even France. I would propose lowering the tax rate on everybody. Addtionally, the Tax Foundation reports that the average effective tax rate on the major integrated oil and gas industry is estimated to equal 38.3 percent which is above the 32.3 percent for the market as a whole. Contrast this with actual cash subsidies that we give to ethanol, wind and solar and we save about $4BB.
3) Implement the President's and Congress's International Tax Reforms:
That would make the US the only country in the world that does that. Do you think France is going to Tax Carrefour of Brazil as if it were a French Company? That wouldn't make sense. Before you pass this off as something that could never get through, the United States is currently the only country that taxes personal income on people living and working abroad. For example, if you go to work in Bermuda, your colleagues from the UK will be paying very low Bermuda Taxes. You will be paying very high US taxes. Now they want to do the same thing with US companies. Get ready for a stampede of US companies moving to Toronto.
4) Reinstate Superfund Fee on Polluters: Instead of taxpayers paying for polluters to clean up their toxic waste sites, make the polluting companies pay the bill.
Who is going to be against making companies clean up their mess? They key to superfund fee is that it will be managed by the EPA. As much as I am against excessive lawsuits, that is how this kind of damage is meant to be handled. Otherwise, the EPA can charge a company for killing snails or some kind of endemic Mayfly. Instead congress wants to give the EPA power to decide what is toxic, and to assign penalties.
5) Implement the Financial Crisis Responsibility Fee: This is an extra tax on companies that have taken tarp money.
OK, Obama has given so much money away and now he wants it back with interest and he wants a special tax too. Shouldn't have we just not lent it out in the first place.Eliminate tax breaks for companies that keep profits overseas, and tax corporations managed and operated in the U.S. as U.S Corporations.