Dankdude
Well-Known Member
Now a little more info for you in the recent past and today.
The federal tax system is the nation's biggest welfare system. In 1995, special tax breaks cost $456 billion. Most of these tax breaks went to rich individuals and corporations. Corporations got another $86 billion in direct subsidies. By contrast, welfare for poor people (Aid to Families with Dependent Children) cost the federal government $22 billion. Yet, to hear the politicians talk, social welfare programs are breaking the federal budget.
Since 1960, the tax structure has become less progressive. In the early 1960s, there were the first of many capital gains tax cuts. Then corporate income tax rates were cut. Then tax rates on personal income taxes for the highest tax brackets were cut. Then regressive payroll taxes for Social Security and Medicare were raised dramatically in the early 1980s, while tax rates for the rich were cut once again. Today, the federal tax structure is less progressive than it has ever been. We favor restructuring the federal tax structure so that it is progressive, with higher rates for high-income people than for low income people.
Another serious problem with the existing tax structure is tax rate competition among states and localities. It has a virtual civil war between states and localities offering tax breaks, subsidies, and other government favors to lure corporate investment into their jurisdictions. Instead of corporations competing for customers, we have states and cities competing for corporations. In addition, unfunded federal spending mandates force local governments to raise regressive property and sales taxes, further shifting the costs of government on to middle and low income people. To remedy these problems, we favor centralized collection of most taxes by the federal government, combined with revenue sharing with Community Assemblies, municipalities, counties, and states where decentralized administration of government services is rendered more democratic and accountable.
In case you haven't noticed, since 1960 gross domestic product has fallen off more and more. And yet they started cutting tax for Corporations and the Rich. I wonder why that is Vi? Hmmmmm?
The federal tax system is the nation's biggest welfare system. In 1995, special tax breaks cost $456 billion. Most of these tax breaks went to rich individuals and corporations. Corporations got another $86 billion in direct subsidies. By contrast, welfare for poor people (Aid to Families with Dependent Children) cost the federal government $22 billion. Yet, to hear the politicians talk, social welfare programs are breaking the federal budget.
Since 1960, the tax structure has become less progressive. In the early 1960s, there were the first of many capital gains tax cuts. Then corporate income tax rates were cut. Then tax rates on personal income taxes for the highest tax brackets were cut. Then regressive payroll taxes for Social Security and Medicare were raised dramatically in the early 1980s, while tax rates for the rich were cut once again. Today, the federal tax structure is less progressive than it has ever been. We favor restructuring the federal tax structure so that it is progressive, with higher rates for high-income people than for low income people.
Another serious problem with the existing tax structure is tax rate competition among states and localities. It has a virtual civil war between states and localities offering tax breaks, subsidies, and other government favors to lure corporate investment into their jurisdictions. Instead of corporations competing for customers, we have states and cities competing for corporations. In addition, unfunded federal spending mandates force local governments to raise regressive property and sales taxes, further shifting the costs of government on to middle and low income people. To remedy these problems, we favor centralized collection of most taxes by the federal government, combined with revenue sharing with Community Assemblies, municipalities, counties, and states where decentralized administration of government services is rendered more democratic and accountable.
In case you haven't noticed, since 1960 gross domestic product has fallen off more and more. And yet they started cutting tax for Corporations and the Rich. I wonder why that is Vi? Hmmmmm?
