Liberal Party of America

The Liberal Party of America's political blog "Life, Liberty, and the Pursuit of Happiness"

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    Saturday, April 01, 2006

    Taxes, Taxes

    LPA: The way the tax system in America is formulated, the people who pay the most tax are the people who make the most money(sometimes). This is generally an accepted practice throughout history. The tax cuts that President Bush called for went mostly to the rich because it was a straight percentage across the board. The more tax you paid, the higher your savings. OK, fair enough. I think it could have been structured so that the huge middle class could have benefitted more from the tax cut, but let's face it, that's what Republicans are all about. They represent the wealthy, and are supported by the wealthy, so they cater to the wealthy, there is no surprise in this.

    The things that needs immediate attention are very simple to understand and justify. If a publicly held company is not making a profit, or the company is just about breaking even, then why should it's corporate executives make millions of dollars? If the company is a private concern, then it's nobody's business, but a publically held company should come under government scrutiny. It's not fair for an investor to see his or her investment go into the pocket of a CEO or some other administrator while the company is going down the road to ruin. These "Golden Parachutes" and ridiculous perks and salaries should be tied to how much the company is making. If the company is making windfall profits then by all means reward the people that led it there. If the company is going belly-up, why pay these suits that are responsible for running it into the ground? Why should the CEO of a company that is in the red make 32 million dollars a year? Is that fair for the shareholders? In my view, 32 million or 20 million is too much to pay anyone for anything, but when a company can't pay it's bills and goes into Chapter 11 bankruptcy, it cost's the government money to help bail these companies out. I don't think it is fair for the shareholder, or the taxpayer to help these people to mantain thier yacht club memberships and pay off the mortgage for their mansions.

    Another thing is the capital gains tax. If I buy a house and pay 20 years, or 5 years on a house and it appreciates, or I have a business that I worked hard to get going and sell it at a profit, why then should I cut the government into almost half of the profit? Why even try to make a profit if I have to share that much with the government? We need more incentive to get people to invest and grease the wheels of industry. This Republican "Trickle-down" theory of cutting income taxes doesn't work. The more money most people make, the more they have in their portfolio. The majority (there are exceptions) of the wealthy didn't get wealthy by sharing it with others.

    Basically I'm just pointing out that the tax codes have to and must be changed to reflect the reality of today's world. The incomprehensible laws that have piled one atop the other, make it almost impossible to operate anything without the assistance of a CPA and tax professionals. Even if one could afford it, the possibilities of violating the myriad of laws and regulations put people on very shaky ground. There is a better way. The better way is revising the tax code based on logic rather than self interest. To bring an independant committee of business people and economists. The way to change the tax codes is to keep the politicians out of it until it comes to a vote, and then if a compromise can not be reached, to bring it to a referendum to the American people. That is the only way that we are going to fix this broken economic model. This is the only way to make it fair for everyone. This is the right thing to do.

    1 Comments:

    Blogger Unknown said...

    I have been informed that statistically the wealty pay less tax than the middle class due to off shore accounts, tax shelters and other ruses. This is precisely why the tax code should be revised.

    3:49 PM  

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