Halloween can be a very scary time for many, especially little ones, who wind up with nightmares after listening to all the tales of witches, ghosts, and goblins. However, nothing can be as frightening or terrifying as when congress messes around with one’s income swallowing it up to pay for its voracious appetite.
The AMT (Alternative Minimum Tax) was created in 1969 to ensure that a very small number of wealthy individuals could not use tax breaks or deductions to eliminate their entire tax liability. However, the tax was not indexed to inflation and as a result many more individuals other than just the wealthy are now going to be exposed to paying higher taxes if some kind of “fix” is not done.
Senator Rangel of New York and other senators want to fix this anomaly by forcing the rich and some corporations to restore fairness and equity to the tax system requiring them to pay more to make up the loss that would occur by permanently repealing the AMT. The cost to the government would be about $800 billion over a ten year period if “something” is not done.
Rangel and others suggest that the loss of income to the federal government through the AMT can be regained by making investment fund managers pay more in capital gains taxes and prevent hedge fund managers from using offshore tax haven corporations to defer taxes. He talks in terms of what the AMT costs the government and how the government can make up the difference by taxing higher income individuals through higher tax rates and fewer deductions.
Never once does he or any of his cohorts in the senate discuss the possibility of cutting spending. Never once do they even discuss the constitutional thing to do and get rid of the income tax altogether, which the founders abhorred.
Members of the senate and even the house, no matter which party, do not even seem to comprehend that the more taxes placed on the rich the less incentive there is to become wealthy thereby decreasing the number of wealthy individuals that will be able to even pay an income tax. This in turn drives down the income of the government creating an even bigger deficit and debt situation.
Also, corporations do not and never have paid any income taxes. They are just the unpaid collection agency for the federal government. Make no mistake about it; individuals pay all of the income tax collected by the federal government.
This Halloween is extremely scary when it appears that members of congress do not have a handle on basic finance and economics. Members of congress must begin focusing on their constitutional duty of not economically raping the very individuals who elect them and get the government’s house in financial order by cutting spending with a gigantic machete. If not, bankruptcy is not far around the corner making sure that kids will not be the only ones having nightmares.
“Ben Franklin” will be at the Booth Machinery conference hall tomorrow at 7 PM to provide an “electrifying” and entertaining evening for the Yuma community. Come visit with the first American.
People for the USA, in conjunction with the Yuma Union High School District, will host Mr. James P. Owen, Tuesday, November 15, 7 PM at the Kofa High School auditorium. Mr. Owen will discuss, “Cowboy Ethics: What Wall Street Can Learn from the Code of the West.”
Dr. Earl Taylor, president of the National Center for Constitutional Studies, will discuss the applicability of the Constitution to many of today’s situations December 4 also at the Booth Machinery conference hall at 6:30 PM.
Mark your calendar for April 29, 2008 when the Yuma community will have the opportunity to visit with the Rushmore presidents.