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Washingtons budget hawks want to decimate the federal workforce to shrink the deficit. It will have the opposite effect.
By John Gravois
Last year there wasn�t a single fatal airline accident in the developed world. So why is the U.S. health care system still accidently killing hundreds of thousands? The answer is a lack of transparency.
By Marshall Allen
Dan Savage, the brilliant and foul-mouthed sex columnist, has become one of the most important ethicists in America. Are we screwed?
By Benjamin J. Dueholm
There arent nearly enough counterterrorism experts to instruct all of Americas police. So we got these guys instead.
By Meg Stalcup and Joshua Craze
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May 12, 2006
TAX NONSENSE....I didn't have the energy to write yet another post about the progressivity of the American tax code today, but luckily Matt Yglesias does it for me. The nickel version is: don't be a moron. Of course George Bush hasn't made the tax code more progressive.
Interestingly, though (or maybe not), even Matt gets slightly suckered by JEC report #109-36, the source of this current round of idiocy. It's true that the report doesn't claim that Bush's tax cuts have made "the tax system" more progressive, but in fact it doesn't even claim that his cuts have made "the personal income tax" more progressive. It merely says that the personal income tax is progressive. Which it is. No thanks to Mr. Bush, needless to say.
—Kevin Drum 12:50 AM
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Amen.
Posted by: BB on May 12, 2006 at 12:52 AM | PERMALINK
Well, as the cited report was only TWO pages long, and most of those pages consisted of charts, its hard to believe that it was so incredibly difficult to actually read it.
Once again, the sucker's argument of how the top 50% pays 90% of income tax is trotted out. Of course, this does not include SS and medicare. Of course it does not include sales tax.
But, most importantly, no mention of the fact that the top 50% also makes something like 80% of all of the income. No point in mentioning that, someone might get the wrong idea.
Posted by: hank on May 12, 2006 at 1:02 AM | PERMALINK
Tax Nonsense Indeed.
They do not care about the facts, they KNOW they are wrong. They LIE for political gain.
No wonder they support Bush, only a Liar Would.
Posted by: Abraxas on May 12, 2006 at 1:03 AM | PERMALINK
The US government accounting system is alot like Enrons......Go Figure.
Posted by: Abraxas on May 12, 2006 at 1:08 AM | PERMALINK
Of course George Bush hasn't made the tax code more progressive.
Of course he has. He has made it so that those who work harder will enjoy more of the fruits of their labor while those who do not work as hard can't take money from those who work harder. This makes the tax system more progressive.
Posted by: Al on May 12, 2006 at 1:08 AM | PERMALINK
Piketty and Saezs facts and figures show us what happened, but they do not say why these changes occurred. Understanding how this happened
involves many issues because, in a nation as complex and diverse as America, there are many ways to collar a dollar. Some of these, as we
shall see, involved pumping up compensation for those high in the corporate structure, no matter how it affected the companys workers and
shareholders. These strategies, in turn, had an important side effect: creating a demand for corporate tax shelters, which helped shift the overall tax burden off capital and onto labor. By 2002, the portion of federal revenues coming from corporations was below 10 percent, down from a
third in the Eisenhower years. The demand for tax shelters in turn encouraged an anything-goes morality about hiding money, both corporate
profits and individual incomes, from the IRS. Some companies went so far as to renounce America as their headquarters, at least on paper,once they learned that if they used a Bermuda mailbox as their tax headquarters they could earn profits tax-free in the United States.
Arranging to have torrents of money flow to a very few pockets also required putting immense pressure on Corporate Americas front lines,
the employees, to make the numbers demanded from on high. Even if it meant cheating people out of their wages or disability benefits, or foisting
costs off onto the taxpayers, corporate managers were driven to produce the results the home office demanded or else join the ranks of the downsized. The cuts in regulatory agencies, and even in many law enforcement agencies, made such thievery easy. When people complained that they had been cheated out of overtime or even regular pay, the agencies had no resources to pursue the cases, even when there was a pattern of abuse by brand-name companies like Wal-Mart and Taco Bell.
In all of this, both big corporations and those among the very wealthy who wanted to handcuff law enforcementat least when it came to stealing by business practicehad as allies their good friends in Congress. Corporate Americas effort to mold both political parties todo its bidding was increasingly successful as politicians needed ever more contributions to buy the television ads that got them reelected. Politicians
insisted that no one bought their vote with their donation and that was true. But what donations did buy, every politician acknowledged,was access. That access meant that every senator and representative was listening primarily to the concerns and ideas of the super rich.
Indeed. The People PAY way more than their share, These Assclowns are greedy beyond Life. Life means nothing. Money means everything.
Feck Em.
AL as usual is WRONG.
Posted by: Abraxas on May 12, 2006 at 1:25 AM | PERMALINK
Hank gets it.
If the top pyramid of General Motors makes 80% of the dough from car production, and the lower pyramid makes 20%, then the top will push for national healthcare. Simple math, they recover 80% of the reduced company healthcare expenses for the company but only pay 50% of the nationalized healthcare cost.
That is why goverment grows when tax rates are flattened. Each new increment of government services that replaces a corporate expense expands the return on investment for the upper brackets and reduces it or the lower.
The marginal return on goverment expansions must be felt at all levels of the economy equally, otherwise the rich will hang around Washington and grow government.
Posted by: Matt on May 12, 2006 at 1:27 AM | PERMALINK
Its people like me AL, the Labor thats pays the Bills, not YOUR LAZY ASS
and your STUPID AS ALWAYS POSTS;
~~~~
He has made it so that those who work harder will enjoy more of the fruits of their labor while those who do not work as hard can't take money from those who work harder. This makes the tax system more progressive.
~~~~
No AL its those WHO DONT WORK HARD THAT PAY NO TAXES, Thru LOOPHOLES.
If I ever met YOU AL I would punch you right in the Grill for being a greedy slimey apologist.
What PLANET DO YOU LIVE ON AL??
Posted by: Abraxas on May 12, 2006 at 1:28 AM | PERMALINK
AL come work with me ONE DAY, Just one day 8 hours of hard manual labor, you will be crying like a SISSY at the end of the day.
And guess what else?
I will live alot longer than you, and Always be much Stronger.
Care to try some HARD WORK AL?
Posted by: Abraxas on May 12, 2006 at 1:30 AM | PERMALINK
AL: He has made it so that those who work harder will enjoy more of the fruits of their labor while those who do not work as hard can't take money from those who work harder. This makes the tax system more progressive.
He has made it so that those who work the hardest, in order to keep working at all, must work progressively harder for progressively less so that those who sit on their assess will receive progressively and obscenely more. He has also made it so you sound progressively more ridiculous with each post. And, finally, he has made it so that his approval rating is progressively lower at an ever increasing progressively quicker pace. That Bush, Mr. Twenty-nine Percenter, he's some progressive, huh?
ABRAXAS: If I ever met YOU AL I would punch you right in the Grill That's not called for or necessary. Al will likely eventually be swept up along with the rest in investigations of wrongdoing, as they go progressively deeper into the slime.
Posted by: jayarbee on May 12, 2006 at 1:35 AM | PERMALINK
Of course he hasn't made the tax system more progressive (the implication that he has is just an attention getter). Tax collections have become more progressive (more revenue comes from higher income earners) as a result of his flatter tax policy.
Posted by: aaron on May 12, 2006 at 1:35 AM | PERMALINK
Yes, aaron, we get more taxes from the upper half, but by transfering private sector expeses to government, their income rose dispropotionately.
A good example is the auto industry fueled by flat gas taxes. It worked resonably well in late 50s and early 60s, even as the highest bracket was 91%. It worked because the gains in productivity and income lifted everyone, and lifted the corporate upper half more as the auto industry expanded. But everyone went along, even at those high brackets.
That was real growth, not this fake growth in mindlessly expanding government to reduce corporate expenses.
Posted by: Matt on May 12, 2006 at 1:46 AM | PERMALINK
Indeed, to the best of my knowledge, conservative don't think the government should curb inequality at all.
True. While many conservatives might believe that the government should help care for those who are too poor or sick to care for themselves, or help people in emergencies and other situations, this not the same thing as "curbing inequality." As though the mere fact that one person has more than another person is evil in and of itself.
There have been plenty of nations founded on the "tall poppy" syndrome. Usually they wind up universally poverty stricken, with the only "tall poppies" left being the rulers.
Face it, the top half of the income ladder already pays for almost 100 percent of your beloved discretionary budget and favorite programs. You can dance around that as much as you like, but there it is. Maybe that's what ticks you off the most.
Posted by: tbrosz on May 12, 2006 at 1:46 AM | PERMALINK
That's not called for or necessary. Al will likely eventually be swept up along with the rest in investigations of wrongdoing, as they go progressively deeper into the slime.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Im sick of Assclowns like him, and his constant inane remarks. They see money as Class, as if money makes a better human, currently ALL I see is that money makes corruption and self serving Pricks.
No, AL needs a swift kick in the ASS and so does BUSH, I dont live or work in your corporate world,
and Ill Be Damned if I put up with such IDIOTIC talk. Secondly These Educated Idiots think that somehow money creates a higher IQ.
Thats also wrong.
My IQ is above 160. W/no College.
College, to me, is for those whom cant figure it out on there own. They must be TAUGHT.
And where I work, I would punch AL right in the Kisser for being an arrogant asswipe.
Remember that AL next time you go mouthing off in Public. That is if your brave enough.
Posted by: Abraxas on May 12, 2006 at 1:48 AM | PERMALINK
Arrogant Intellectual Pricks
If I wanted your JOB I would have it.
Posted by: Abraxas on May 12, 2006 at 1:50 AM | PERMALINK
TBROSZ: Face it, the top half of the income ladder already pays for almost 100 percent of your beloved discretionary budget and favorite programs.
They don't pay for them. All goods and services are paid for by the labor it takes to produce them. The excess income of workers at the top, including the idle rich, is nothing but a tax on the labor of others, usuriously and forcefully taken under the threat of great harm.
Posted by: jayarbee on May 12, 2006 at 1:59 AM | PERMALINK
The report does not claim that the tax cuts have made the tax system more progressive. That's just a fiction invented by Instapundit and Jonah Lucianne.
Propaganda machine is on full swing.
Next they will tell us that the Bush Iraq war has saved the lives of X-2500 American troops, where X is the number of troops that we had before the fiasco began.
Posted by: lib on May 12, 2006 at 2:03 AM | PERMALINK
"...the top half of the income ladder already pays for almost 100 percent..."
Meaningless. Consider a situation when the bottom half is dirt poor, then they are out of the picture so to speak.
The issue is who gets the greatest return from each increment or decrement in govenrment services. In that analysis, as the Reagan Republicans say, we can do some dynamic scoring. And, dynamic scoring tells us that the top 5% of the income brackets are pushing for government expansion for good reason, they get the highest pay off.
Rich Republicans grow government, they grow the discretionary budgets, they grow medicare, they grow immigration, they grow the military, they grow social security.
The Republican paty was founded to provide flat taxed, deficit spending, government subsidies, free labor and government expansion. The was Lincoln's aim, he wanted government to lead in the expansion of the west, just like Hamilton before him.
The battle we are having now is the traditional American battle. The little guy wants less government, more progressive taxes; the Republicans think otherwise. Jefferson vs Hamilton.
Posted by: Matt on May 12, 2006 at 2:04 AM | PERMALINK
http://www.nationmaster.com/graph-T/eco_inc_dis_ric_10
Look at the company we keep.
Posted by: BB on May 12, 2006 at 2:16 AM | PERMALINK
With all of the Bush tax cuts, the income tax is now essentially very flat. Almost everyone pays between 15 and 22 percent. That's certainly not progressive in my opinion. The "Flat Tax" proponents have actually won for now; even though their original proposals went nowhere, their ideas were accomplished through large tax cuts at the upper end.
The LA Times had a very good article last month about this.
Posted by: blueheron on May 12, 2006 at 2:20 AM | PERMALINK
"Next they will tell us that the Bush Iraq war has saved the lives of X-2500 American troops, where X is the number of troops that we had before the fiasco began."
Yes, starting to get the picture. Who gains the most from a stable Iraq? The Republicans will tell us we are all better off, probably true, but the rich are proportionately better off becase they gain more in perentage income than they pay in percentage war costs.
Though, I must admit, my hero, Thomas Jefferson did fight the Barbary pirates.
Posted by: Matt on May 12, 2006 at 2:23 AM | PERMALINK
If more people understood the law of diminishing marginal utility, we'd be in much better shape.
Posted by: BB on May 12, 2006 at 2:58 AM | PERMALINK
The Personal Income Tax is Progressive?
A person might conclude that by looking at the rate of taxes on wages. But the very rich generally do not get the bulk of their income from wages, they get it from investments. Capital gains are taxed at 15%. Dividend income is taxed at 15%.
Personal income tax may be progressive if one excludes common sources of large amounts of income for the wealthy. But, if one includes it.....?
Posted by: i dunno on May 12, 2006 at 6:44 AM | PERMALINK
Face it, the top half of the income ladder already pays for almost 100 percent of your beloved discretionary budget and favorite programs.
Its actually being paid for by all the T-Bills we sell to the Chinese.
Posted by: Stephen on May 12, 2006 at 9:33 AM | PERMALINK
You write that "the personal income tax is progressive." Well, yes, but not nearly as progressive as it once was. And when it comes to the *effective* tax rate (the tax that people actually pay as percentage of their income), the rich pay only a tiny bit more than anybody else. George Bush's tax policies have contributed hugely toward that result.
Posted by: Gerald Scorse on May 12, 2006 at 9:59 AM | PERMALINK
Another libertarian is willing to tolerate the party of Thomas Jefferson:
Arnold Kling:
'This November, I am looking forward to seeing the Republicans lose control of Congress. I would say to the Republicans, as Oliver Cromwell reportedly said to the Rump Parliament, and as Leo Amery reprised during Neville Chamberlain's final crisis as Prime Minister, "You have sat too long for any good you have been doing lately... Depart, I say; and let us have done with you. In the name of God, go!"
The whole oil-company-baiting, education-centralizing, entitlement-expanding, earmark-loving lot of them can be tossed out, as far as I'm concerned. Then we can start over.'
OK, folks, are you starting to get it???
Posted by: Matt on May 12, 2006 at 11:25 AM | PERMALINK
Face it, the top half of the income ladder already pays for almost 100 percent of your beloved discretionary budget and favorite programs.
As of the latest available data (2003), income tax revenue from the top 50% came to 80% of discretionary outlays that year, including the Bush Wars supplemental.
The top 50% make 86% of the income in this country, so I'm not really sure what the problem is. They also pay an average tax rate of 13%. How "burdensome".
Posted by: BB on May 12, 2006 at 12:13 PM | PERMALINK
Refs.
http://www.irs.gov/pub/irs-soi/03in07tr.xls
http://www.whitehouse.gov/omb/budget/fy2007/sheets/hist08z1.xls
http://www.fas.org/asmp/resources/govern/crs-rl31829.pdf
Posted by: BB on May 12, 2006 at 12:14 PM | PERMALINK
Deroy Murdock at the National Review is starting to get it:
http://article.nationalreview.com/?q=NTNkZmE0ZDM5YTUyMzE2NGZlMjNkOTJlZDg0ODgwNTI=
' The GOP is the party of LBJ '
He is discovering that when taxes are flattened, business interests transfer income security to goverment and hire workers outside the USA.
It is cheaper for business to let goverment handle swarms of homeless in LA with handouts while they move jobs overseas or bring in immigrants. If tax rates were more progressive, business interests would rather train and hire domestic workers themselves.
Posted by: Matt on May 12, 2006 at 12:16 PM | PERMALINK
BTW, if you don't know it, when someone says "The top half pay 96% of taxes", it's a lock they're a Dittohead.
The Fat Junkie has had that on his homepage for years, so I assume he repeats the "point" many times over to his brainwashed hordes.
Posted by: BB on May 12, 2006 at 1:00 PM | PERMALINK
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