Monday, October 02, 2006
Tax Cuts - And The Rich Paid More
"For years, policymakers and legislators in Arkansas responded to every challenge the state has faced by raising taxes. So instead of growing a vibrant economy and creating new jobs and expanding our tax base, the state hiked taxes again and again and again up to a point where working families just can't afford to pay anymore and our economy is stifled. He has also called for broad-based tax relief for working Arkansans."
As typical of the left, the Dems claim that that will benefit the rich. This is the same thing they said when President Reagan proposed his tax cuts in 1981. Yet the coffers filled up and Congress spent like drunken sailors - no offense to sailors. Again in 2001, tax cuts were proposed and passed - this time by President Bush. Predictably, the left screamed that it benefited the rich.
This time, as last, they were wrong.
According to a paper from the National Center for Policy Analysis, "Millions of upper-middle and moderately high-income earners also benefited from tax rate cuts. But the analysis shows their savings was limited by the Alternative Minimum Tax, which eliminates some deductions and credits they could otherwise claim on federal tax returns. The levy particularly hits those whose high state and local taxes become ineligible for federal tax deductions.
"For instance, taxpayers who earned between $100,000 and $200,000 in 2004 paid 22.5 percent of all federal taxes, up from 19.4 percent four years earlier. Those who earned between $200,000 and $500,000 in 2004 paid 17.9 percent of all federal taxes, up from 15.4 percent in 2000, the analysis showed."
Asa's tax proposals will bring in higher dollar amounts to the states coffers without undo harm to any mandatory projects. In fact, if history is any guide, jobs will be created by cutting taxes.
Other bonuses from Asa's tax reform plan:
- Small Businesses receivee increased expense limits.
- Manufacturers receivee energy exemptions.
- Sales tax on food and medicine are eliminated.
- The State Legislature would require a super-majority to raise taxes.
What does Mike Beebe offer? Well, considering his history of raising taxes, you can probably take his proposals as tongue-in-cheek offers at humor.
- "Phase-out" of grocery tax.
- "Phase-out" of tax on utilities for manufacturers.
- Tax Credits to help small businesses cover their employees.
Keep in mind Beebe has had 20 years of service in the legislature and AG office, yet has never offered these up for consideration himself. He has never shown leadership on this issue and, chances are, never will.
Asa says, "We must think anew and we must act anew. Instead of focusing on new revenues driven by new tax increases, we must look at reducing the state’s tax burden as a way to spur the economy, create jobs, and the needed revenue will flow from a broader and healthier tax base." Reaganesque.
National Center for Policy Analysis: Taxes http://www.ncpa.org/sub/dpd/index.php?page=article&Article_ID=12879
Asa Hutchinson: Taxes http://www.asaforgovernor.org/get-informed/Issues/issue.aspx?IssueID=13
Mike Beebe: Issues http://www.mikebeebe.com/free_details.asp?id=9
2)Nixon covered for people loyal to him. It wasthe cover-up thattook down Nixon. Conversely, when Slick got in trouble for anything (like lying under oath to a grand jury or selling Nuke secrets to China), he threw someone else under the train atevery chance.
3) Cuba is a communist country. That would be more fitting for thenew speaker of the house - Mz. Pelosi.
Need I say more?
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