Conservatives are busy cutting taxes for the wealthy while slashing programs which help the less fortunate or which run contrary to their ideology.
The majority of Americans who work have income which is taxed at 25% or above. The wealthy send their money to work, and receive income in the form of capital gains and dividends; that income is taxed at 15%. Which should be considered more valuable, income from people doing actual work, or income from money which is doing the work? Conservatives think that if you have to work for a living, your income should be taxed at a much higher rate.
Conservatives also think that budget deficits should be eliminated without raising taxes on the wealthy. To balance the budget in the absence of revenue increases, spending cuts must be made. Conservatives are proposing a large number of cuts which will hurt millions, many of whom are poor, disabled, sick or elderly.
Let's look first at a few of the reasons that the deficit has increased for 2011.
If income from capital gains for just part of the top 1% (those making over $500,000) was taxed the same as regular income, federal tax revenues would have been $72 billion higher in 2008. A low estimate for lost revenues in 2011 from this ongoing tax break would be 70 billion.
For those owning stocks, the extension of lowered tax rates (currently 15% or less) on dividend income will cost about $37 billion in 2011.
Extending the Bush tax cuts on the highest income families will cost more than 40 billion in 2011. (The total cost of extending the Bush tax cuts is $272 billion per year.)
The one-year Social Security 2% tax holiday will cost $112 billion. (Revenue to the Social Security Trust Fund which is lost from that 2% payroll tax cut is made up for with money from general revenues.) This deal was done in exchange for dropping the Making Work Pay tax credit. The change will benefit wealthy taxpayers more than than lower income taxpayers; some with low income will see a net tax increase.
A new temporary option for businesses to write off 100% of their expenses will add $21 billion to the 2011 deficit.
The lowered estate taxes for the wealthy are estimated to cost in excess of $12 billion this year.
These tax provisions alone, already enacted and benefiting mostly the wealthy, add up to 292 billion in lost revenue for 2011.
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The majority of Americans who work have income which is taxed at 25% or above. The wealthy send their money to work, and receive income in the form of capital gains and dividends; that income is taxed at 15%. Which should be considered more valuable, income from people doing actual work, or income from money which is doing the work? Conservatives think that if you have to work for a living, your income should be taxed at a much higher rate.
Conservatives also think that budget deficits should be eliminated without raising taxes on the wealthy. To balance the budget in the absence of revenue increases, spending cuts must be made. Conservatives are proposing a large number of cuts which will hurt millions, many of whom are poor, disabled, sick or elderly.
Let's look first at a few of the reasons that the deficit has increased for 2011.
If income from capital gains for just part of the top 1% (those making over $500,000) was taxed the same as regular income, federal tax revenues would have been $72 billion higher in 2008. A low estimate for lost revenues in 2011 from this ongoing tax break would be 70 billion.
For those owning stocks, the extension of lowered tax rates (currently 15% or less) on dividend income will cost about $37 billion in 2011.
Extending the Bush tax cuts on the highest income families will cost more than 40 billion in 2011. (The total cost of extending the Bush tax cuts is $272 billion per year.)
The one-year Social Security 2% tax holiday will cost $112 billion. (Revenue to the Social Security Trust Fund which is lost from that 2% payroll tax cut is made up for with money from general revenues.) This deal was done in exchange for dropping the Making Work Pay tax credit. The change will benefit wealthy taxpayers more than than lower income taxpayers; some with low income will see a net tax increase.
A new temporary option for businesses to write off 100% of their expenses will add $21 billion to the 2011 deficit.
The lowered estate taxes for the wealthy are estimated to cost in excess of $12 billion this year.
These tax provisions alone, already enacted and benefiting mostly the wealthy, add up to 292 billion in lost revenue for 2011.
1 2 Next >>
