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Once again the Republicans show that deficit denial part of their religion. The Reagan-Bush deficits didn't happen, and if the rich were just untaxed, then everything would be great. Afterall, everyone admits that much of the corporate profit picture isn't that business is better, it's the tax breaks. So let's take a look at how they intend to sock it to you.

The pursuit of a defacto tax free status for the wealthy is the obsession of every aristocracy - they want to maintain a constant share of total wealth. Which means they want a no risk way to increase wealth that grows at GDP+inflation+personal consumption. It never works out because this is contradictory, one can only get no risk at NRI+inflation, and the Natural rate of interest has to be below GDP growth.

What this always amounts to then is finding a way to push taxes down the scale onto those people who work. After all if rent is tax free, and capital almost so - the all taxes have to be paid by labor. So check your income tax statement, unless you make more from sale of stock and dividends and rental income than you do from your job - you are on the menu on the Tax Increase Buffet


American corporations is so flawed that the government would save $55 billion if it simply scrapped the system altogether

Translation: the rich are so good at tax evasion, why bother?


The report also estimated that the government could raise $57 billion over the next decade by making it harder for self-employed people to avoid payroll taxes.

Translation: screw free lancers, they don't have the lawyers to stop it.


And it said the government could raise $10.5 billion by expanding the federal tax on telephone service to cover data transfer over the Internet.

Translation: tax the future to prop up the past.


$164 billion over 10 years by changing the laws that exempt from payroll taxes for Social Security and Medicare a variety of fringe benefits, including employer-paid health insurance and child care assistance.

Translation, tax people for working.

All in all this is a huge set of tax increases, all of which will be born by workers, and not by the wealthy. Since the wealthy have received trillions in tax reductions, shifting the burden down and forward to the future to pay the interest on the debt, nothing says it better than John Edwards - the "Republican War on Work".

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When you add in the Bush Plan to slash Social Security by linking it to price, rather than wage, inflation, what this adds up to is a series of tax increases that will amount to almost 1 trillion dollars over the next 10 years. Almost all of which will fall on the people who are between 20% and 80% of the income curve.

Originally posted to Stirling Newberry on Fri Jan 28, 2005 at 10:02 AM PST.

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