What congressman doesn't deliver pork to their constituents? But foremost, they should put America first. The Republicans want to stimulate the economy. Daschle wants to turn the debate over how the economy should be stimulated into another class warfare agenda.
DACHLE’S PLAN … DENY TAX CUTS TO PEOPLE WHOM PAY TAXES, GIVE TAX CUTS TO PEOPLE WHO DON’T PAY TAXES.
Again … we probably don’t need a stimulus bill to bring about economic growth. Such a bill would speed things up though.
Let’s take a little look at what they’re discussing in DC.
First – we have another rollover by George Bush. Up until now he has been proposing an acceleration of the tax cuts passed earlier this year. This would mean that people in all tax brackets would get to keep more of the money that they work for an earn sooner rather than later.
Democrats don’t like this idea. More particularly, they don’t like the part of the deal that allows evil rich people --- the ones who carry the majority of the income tax load --- to keep any more of the money they earn. Well, they needn’t worry. Bush has caved. He’s now amended his plan so as to eliminate the accelerated tax cuts for the highest tax bracket. Now those accelerated cuts will only apply to the 25% bracket and lower. No relief for the wicked wealthy. Democratic class warfare wins again. The accelerated tax cuts will go to the people more prone to vote Democrat. Republican voters get screwed.
To stimulate the economy you stimulate the stimulators. The stimulators are not the lower wage earners who will use an extra few hundred bucks to put running boards on their pickups or new skirts around their trailers. The potential stimulators are the business owners, the investors, the higher wage earners who would use the money from a tax cut to broaden their investments, expand their business activity or purchase larger and more expensive consumer items.
Here’s the little secret that Democrats earnestly hope the voters never really come to understand. This is the secret that, if widely understood, could destroy the Democrats class warfare, vote buying schemes forever. Over the past 100 years of this nation’s history major tax cuts have ALWAYS resulted in increases in federal government revenue. The increased economic activity that results from relieving the tax burden on the higher achievers actually brings more money to the federal treasury.
THE TAX HOLIDAY FRAUD
Daschle’s class warriors continue to promote the idea of a one-month tax holiday. One month where their constituents won’t have to pay Social Security taxes.
First --- let’s make it clear that this tax holiday idea will not stimulate the economy. It does absolutely nothing to change anyone’s economic behavior, other than giving people a one-time infusion of some pocket change they can use to pay down a credit card bill.
This idea of a tax holiday is a fraud. It is not an “across the board” cut in taxes. The only people who will pay less in Social Security taxes will be those people who earn under the current maximum Social Security tax threshold.
Here’s how it works. Let’s say you usually reach the $88,000 or so maximum wage limit and finish paying your Social Security taxes at the end of August. If this Daschle-approved scheme becomes part of a stimulus bill you will not have to pay any Social Security taxes in, let’s say, January. So, what happens then? If you earn above the earnings threshold the government will just collect that money on the back end. Instead of finishing with your Social Security tax payments in August, you’ll finish at the end of September. In other words, the money they “give” you in January they’ll take back in September.
But --- what of those people who make under the wage threshold? They get the tax holiday in January … but never have to make it up!!!
So --- what we have here is a tax cut for lower income Americans … and an interest free nine-month loan for high-achievers. The low-income earners – the ones who tend to vote Democratic – get to keep some more of their own money. The higher income earners – the ones who tend to vote Republican – get nothing.
What you are seeing here is yet another example of how Democrats (and Republicans) like to use the hideous Social Security system as a vote-buying and income redistribution scheme. Most Americans will be fooled by this scheme. Now YOU won’t be.
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