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TrollBuster9090

(5,955 posts)
Fri Oct 12, 2012, 04:36 PM Oct 2012

"Lower The Rates and Broaden The Base." It's time to turn this catchprase back on Dr. Frankenstein.

How many times have you heard Republican/conservative types use the catch phrase "LOWER THE RATES AND BROADEN THE BASE?"

We progressives know what this is CODE for: It's code for lowering the tax rates for the rich, and making up for it by charging MORE TAXES to the POOR and middle class. In fact, the imfamous "47% of Americans PAY NO INCOME TAXES" is the catch phrase that usually precedes it. "47% of (deadbeat) Americans pay no (income) taxes, so, let's lower the rates and broaden the tax base" is what you often hear on the floor of the House.


Okay, it's time to shove this catch phrase back into the mouths of the people who utter it by adding our own catch phrase to it.

"Fix Social Security by LOWERING THE RATE to 4%, and REMOVING THE $6000 CAP on contributions. In other words: LOWER THE RATE AND BROADEN THE BASE!"***

(***Oh, I'm sorry...does 'broadening the base' only refer to taxing THE POOR at greater rates?)


Here's the deal: The Payroll Tax is currently 6%, but is capped at a maximum income level of $102 000. This means that if you earn $100 000 you pay $6000 towards Social Security, or 6%. If you earn $100 000 000 you STILL pay $6000, or 0.006%. That's right, the more you make, the SMALLER your contribution to Social Security gets. Where I come from we call that a REGRESSIVE TAX.

So, let's start getting the word out that fixing Social Security, and making it solvent PERMANENTLY is simply a matter of removing the Payroll Tax CAP of $6000.

In fact, if we do that, we might even be able to LOWER THE RATE for EVERYBODY.

Spread the word:
Let's remove the Payroll Tax Cap so we can LOWER THE RATE by BROADENING THE BASE, and FIX SOCIAL SECURITY.


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"Lower The Rates and Broaden The Base." It's time to turn this catchprase back on Dr. Frankenstein. (Original Post) TrollBuster9090 Oct 2012 OP
also we could "broaden the base" by bbgrunt Oct 2012 #1
YES! Absolutely! TrollBuster9090 Oct 2012 #2

bbgrunt

(5,281 posts)
1. also we could "broaden the base" by
Fri Oct 12, 2012, 04:51 PM
Oct 2012

1. charging a transactions tax on stock trades

2. including what are now called "capital gains" as regular income

It really surprises me that dems do not take this language and use it to their advantage. You make a good point.

TrollBuster9090

(5,955 posts)
2. YES! Absolutely!
Fri Oct 12, 2012, 06:11 PM
Oct 2012

I'd forgotten all about the proposal to add a 1% tax on all stock transactions. That would balance the frikkin' budget overnight. Why should only the BROKERS make a fortune trading worthless, inflated pieces of paper back and forth.

About the Capital Gains tax: here's my take on it.
30 years ago, when the idea of a preferentially low capital gains tax was floated by Reagan it made sense. The wealthy had spare cash, why not do something to encourage them to invest it? (We have to keep pushing the idea that WE ALL KNOW giving the wealthy a preferrentially low tax rate is UNFAIR to the rest of us, but we've ALLOWED THEM to do this AS LONG AS IT BENEFITS THE REST OF US! Over the last 30 years it's morphed into being looked on as an ENTITLEMENT by the wealthy. IT'S NOT! The rest of us GAVE THEM A FREE-RIDE on taxes AS LONG AS WE were allowed to benefit as well.

Anyway...the idea made sense in the 1980s when they invested their money mostly in American companies. But today with international trading being much easier, and the emerging markets (China and India) are growing at faster rates than American companies (DJI), all the preferentially low capital gains rate is doing is SUBSIDIZING THE RICH TO INVEST IN CHINESE COMPANIES that are devoted to DRIVING AMERICAN COMPANIES OUT OF BUSINESS.


So...I'd keep the Capital Gains tax low, but ONLY for investments in AMERICAN companies that are based in the continental USA, pay taxes here, and employ at least 75% Americans in the United States.

How about that for an idea?

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