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Who doesn't want a little extra money in their pocket after working hard and paying taxes? But for most, the anticipated tax-cuts amounted to a shift: the federal government looks good giving individuals a few dollars back, but turns states into the bad guys for slashing services to communities to make up for lost federal funding. When getting $250 dollars back in one hand means giving it to the state in the form of higher taxes or fees with the other, who benefits from the tax cut intended to jump start the economy?
- 71% of Americans did not think their tax burden had been eased by the Bush Administration economic policies.
Hard work and a steady income do not a millionaire make when the burden of paying for the federal government falls harder on working people than corporations the tax rate for corporations has declined in the last 40 years while payroll taxes skyrocket. The working population is now bearing the cost for a higher portion of their health insurance while corporations offer lower paying jobs or shift jobs overseas altogether.
- Since 1962 the top corporate tax rate has been cut from 52% to 35% while payroll taxes doubled.
- According to one estimate, 75% of Americans pay more in payroll tax than in income taxes.
Taxes pay for the things we take for granted, services that enable all Americans to have the opportunity to succeed. With those who work especially people from communities of color also making up a disproportionate share of the military who are fighting and dying for our security, should they also be paying more taxes for the government services, programs and bailing out our ever growing national debt?
The federal accounting office announced that the federal government has run up a debt of $422 billion over the last four years. Add the strain of more people claiming social security and Medicare, to the drain of wartime tax-cuts and payments for wars, and something has to give. No matter who wins the election, taxes will have to be raised or services dropped to make a dent in the debt. How do we fairly share the cost of the services government provides all Americans?
The Wall Street Journal reports The Bush tax cuts, which included a reduction in the top tax rate, as well as reductions in taxes on estates (inheritance), capital gains and dividends helped bolster the fortunes of the fortunate. What did they do for the less fortunate?
- Two thirds of the tax cuts beneficiaries earned an average of about $200,000 a year the top 20% of income earners. The highest incomes received an average of $78,000 in tax cuts.
- People earning the least, an average of $16,000 a year, received an average cut of $250.
Why do we pay taxes? What services and programs do taxes assure us? What does a fair tax system look like? Who will pay for our national deficit and debt? How can we cut the deficit and retain public services and assistance? Are you receiving a tax break when state and payroll taxes inch higher? Are tax cuts widening the gap between the children of millionaires and the children of soldiers? Will they both have the same opportunities to succeed? Whom do we believe about the benefits of tax cuts?
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