I love the fact that there are several bloggers in Laredo of varied opinions. I think I am the most conservative of the group, and that is just fine with me. Although, at some point some reinforcements might come in handy.
Anyway, here is a partial post from blogger Laredotejas. He seems to want to make you believe that I am for cutting Medicare, Medicaid, and Social Security. While I am not for entirely gutting these programs, they do deserve some refinement and upgrades, including possibly raising retirement ages, and fixing some of the fraud problems.
From the blog LaredoTejas ( http://laredotejas.blogspot.com/2011/07/wade-watch-tom-wade-supports-continued.html ):
Wade Watch: Tom Wade supports continued tax breaks for the Rich
Whew, it was about time that Tom Wade spoke out about something. I hadn't had a chance for any new entries under "Wade Watch" but now that drought is over. In his re-launched website, "Wakeup Laredo", Wade, as expected, defends the continued tax breaks for the richest in the country. As do most republicans, Wade would much rather see cuts to Medicare, Medicaid and Social Security than to force the super-rich to just one Lear jet each.
Well, for one thing if Wade's a regular at Starbucks we can be sure he's not suffering financially. I guess that makes it that much easier to "stand up for the rich". The Tea Party and the republicans and generally have somehow hypnotized that standing up for the rich and against the poor equals "taking our country" back. It's a shame to see how robotic some of the ultra conservatives are. Day in, Day out, they repeat, over and over, whatever FoxNews or Rush wants them to say. Don't these people have any "real" principles as Wade proclaims. I wouldn't regard standing up for the more fortunate necessarily a "principle" so much as a way of trying to associate yourself with the rich.......even if it's as a lowly cheerleader.
This constant whine about class warfare is just that, whine. We all know that higher earners pay a much higher percentage of the federal government revenue than those in lower income brackets, many of whom pay NO federal taxes. It has been that way for a very long time. The Tea Party and Republicans understand math, and can comprehend the idea of percentages. Maybe we need some remedial math courses for some of the class warfare democrats. You know, how to show that those that make the most money pay higher percentages of their income.
Why do I defend those that want to keep the tax rates the same? How about this little fact, we have not had tax revenues of more than 20% of GDP for any length of time since at least 1960. This is true even though w have had much higher tax rates in earlier years, in fact, we once had a marginal rate of 91%. Despite higher tax rates, tax revenues still tended to trend around the level of 18% of GDP. There were short periods when revenues went up to 20% of GDP. So, we can safely state that the long-term average for actual tax revenues is 18% to 20% of GDP. ( Again, percentages….hope I am not losing you)
This next line is one that really states what my argument is all about: Higher tax rates can raise revenues to a point until taxpayers change their behavior and then revenues fall back to the long-term trend line.
What does that mean to all taxpayers? People/business asks for, and then receives loophole tax subsidies from their favorite politician. Don’t believe me, look at Wakeuplaredo.com’s new section and you will see where General Electric, a corporation that earned over $152 billion in 2010, and paid NO income tax. NONE. And to add to that: (from CNN Money website this little tidbit): But there's still cause for optimism. GE's order backlog for core industrial products like turbines and locomotive engines stands at $175 billion, and could grow if plans for a $53 billion high-speed rail project ever win Congressional approval.
GE’s corporate tax rate is 35%. But they paid zero and could profit billions more if your tax dollars are spent on inefficient high speed rail projects that are being proposed.
So you see, no matter what the tax rate, people/business will find a way around them through loop holes and moving out of the country. Which reminds me, ever wonder why so many companies left the US with their manufacturing jobs?
Again, raising tax rates on big business and the ultra rich is a fool’s game. It only causes more of a shift in actual tax pain to the middle class because the loop holes don’t apply to them. Again, for those who don’t understand government workings, let me explain.
Government (all levels) base their budget on projected revenues and if those projected revenues are at X$, then the government will budget X$. But when X$ is less than budgeted, the government’s (democrats for sure) first reaction is to RAISE the tax rate to raise revenue. But it is a proven that the upper level of taxpayer and even some middle taxpayers change their habits or look for loop holes that allow them to pay less. So as governments keep raising rates, they keep about the same revenue percentage stream and see only increased payments from those who cannot afford the loop hole finders. So it becomes a never ending circle of increased rates without increasing actual revenue and that increase tax rate will still be paid by the small business owner and those that earn the big money will just find more loop holes and pay less taxes. That is my point, and why I don’t want to see rates adjusted up, but down. How?
First, look at government spending. It is growing beyond our incoming revenue. Now, when we spend more than we take in, we get deficit spending. That is what has been happening since the 1960’s. Even with GDP increasing, the government just keeps spending beyond what they take in. And when your government debt equals or exceeds your GDP, you are in real trouble, as we are today.
So, the first way to fix our financial problem is not RAISING TAX RATES, but cutting our spending. It makes no sense to raise taxes on those who can get around them via loop holes or just move out of the country and then have those that provide the most jobs pay higher rates because they cannot afford to move, or hire high dollar loop hole finders/creators.
What I would like to see, are you ready LaredoTejas, is the removal of ALL subsidies (tax loopholes) in the federal, state, and local tax system. Of course you and I know that will never happen, as these are the real giveaways that politicians survive on. It is not pork barrel spending, but tax loopholes that keep on giving. And it is a problem in both parties.
Just think if we made everyone (and I would still accept a poverty line) pay taxes, everyone’s rate would go down dramatically. There is no arguing this point. It is a fact. But, when you have entrenched politicians in place who want to pass out favors for re-election monies, what you get is lots and lots of tax loop holes. But it is a political process of you do me a favor (loop hole) and I do you a favor (contribute to campaign). Then of course there are the strong lobbies against the killing of loop holes. Attorneys, accountants, and other loop hole finders would go out of business. I say go out of business as did the oxen pulled cart. But these folks have the money and connections to will be spent to assure them that the middle taxpayer keeps on paying more.
This is why I am against class warfare, and why I am for the Tea Party. They get it.
PS, I will be at Starbucks tomorrow at 8:30 a.m. if you want to come by and share a cold glass of black iced tea.
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