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Nbadan
11-18-2004, 01:37 AM
The Bush administration is eyeing an overhaul of the tax code that would drastically cut, if not eliminate, taxes on savings and investment, but it is unlikely to try to replace the existing tax code with a single flat income tax rate or a national sales tax, according to several sources familiar with ongoing tax deliberations.

During his reelection campaign, President Bush piqued interest among conservatives and liberals alike when he said replacing the income tax with a national sales tax was "an interesting idea." Just after the election he signaled that tax policy would be a centerpiece of his domestic agenda, reiterating his pledge to name a bipartisan panel to draft a fundamental tax reform proposal. That sent conservatives scurrying into either the flat tax or sales tax camp to muster political momentum.
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Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth, according to several people who are advising the White House or are familiar with the deliberations.

The changes are meant to be revenue-neutral. To pay for them, the administration is considering.......scrapping the business tax deduction for employer-provided health insurance, the advisers said.

Washington Post (http://www.washingtonpost.com/wp-dyn/articles/A58554-2004Nov17.html)

"Flat tax" is and has always been a BIG LIE by the right

Absolutely no "flat tax" proposal from the right has ever proposed taxing corporate income at an equal or higher rate and under equivalent rules as personal income.

Absolutely no "flat tax" proposal from the right has ever proposed taxing captial gains income at an equal or higher rate and under equivalent rules as personal income.

Absolutely no "flat tax" proposal from the right has ever proposed taxing dividend income at an equal or higher rate and under the equivalent as personal income.

Absolutely no "flat tax" proposal from the right has ever proposed taxing inheritance income at an equal or higher rate and under equivalent rules as personal income.

The tax on the worker's income from his or her own labor is and will always be (under any right wing proposal) far, far higher than any tax on the income others receive from that worker's labor.

The moral of the story: slaves are taxed; slave-owners are not.

2pac
11-18-2004, 01:56 AM
corporate income captial gains dividend income inheritance


Why should these things be taxed at a higher rate than anything else? All income earned - whether through investments, death, etc - should all be taxed at the same rate for everyone. There is no legitimate reason to tax these things at a higher rate, and I have never seen anyone propose that. This isnt a lie, this is reality.