A Conservative Agenda: Part 2 of 5
(Originally posted on An American Front Porch, by Alan Gable)
Part 2 of our Conservative Agenda deals with Fundamental Tax Reform. The thing with federal taxation issues is that the vast majority of the populous knows as much about tax structure as I know about AstroPhysics; I can see the stars at night and I am bound by gravity but my understanding ends only at what I deal with on a daily basis. This is similar to the normal American’s understanding of taxation; he/she understands only that which binds his or her current financial decision making.
As a matter of full disclosure, I am a tax accountant by trade and a card carrying member of Americans For Tax Reform. I have a broad grasp on the subject matter but there are many times that tax code confuses the mess out of me. It is complicated and technical and ever-changing. It is a jumbled fiasco of legalese and politically motivated caveats. The need for over arching tax reform is prevalent and immediate.
Conservative leadership should be bringing the heat for fundamental reform instead of throwing the slow curve in the dirt called “economic stimulus”. I have defended the recent stimulus plan as a temporary economic jolt but its effects will be short lived. The stabilizing plank in a new conservative platform must aim to change the way the government taxes her citizens. Conservative tax reform is motivated by the idea that if big government gets out of the way and relieves the oppressive burden of taxes, then Americans will do what they have always done; innovate and drive economic prosperity.
A word to practicality: conservatives cannot afford to throw their collective weight behind either the “flat tax” or the grassroots movement of the “fair tax”. Each of these plans would require massive government overhauls. While both plans are desireable in the theoretical realm, national government reform of any kind must move in small incremental “baby steps”. This is a reality we would be wise to understand.
Here is one conservative’s specific plan on fundamental tax reform.
The first step is an immediate push for a three-tiered piece of tax reduction legislation. Tier One would provide for the expensing of business assets purchased in the next 2 years. For a brief explanation of why this is a good idea see here. Accelerated or immediate expense of newly acquired business property is mandatory in the conservative agenda. Tier Two would cut the corporate income tax rate from the current punitive 35% to 25% and allow corporate capital gains to be taxed at 15% (the current rate for individuals) instead of 35%. This is a slam dunk. Lower income tax rates free up additional capital which large corporations use to pay employees (more jobs). Also, the drop in corporate capital gains rate would allow corporations to look to sell those large capital assets that they formerly held on to for fear of steep reduction in value at sale caused by a 35% capital gains rate. Tier Three would allow individuals to index their capital gains basis for inflation. Example: If a man had the foresight to purchase several shares of WalMart Stores, Inc. several years ago, he would currently be sitting on a capital asset worth many times his original investment. Under the current rules, when he sells those shares, he must pay capital gains tax on that massive increase in value based on his original purchase price and current market price. However, the value of a dollar has changed since the 80s and he should be able to adjust his basis (original purchase price) to account for inflation over the course of the asset’s holding period.
The second step of a conservative tax reform plan has to address several broad issues affecting Americans.
It must look to Free Market Healthcare Reform by encouraging citizens to take advantage of Health Savings Accounts accompanied by high deductible health insurance coverage. Healthcare costs increase when the consumer and the payer are no longer the same entity. HSAs put the consumer power back in the hands of the patient. Conservative tax reform must include exemption of income set aside in HSAs and an annual wellness tax credit for tax payers who undergo regular medical physicals. The current liberal ideal of government provided healthcare only increases the gap between consumer and payer and will drive healthcare costs even higher.
It must encourage the personal financial principles of saving and investment. All income from savings and retirement accounts should be exempted (not just deferred). The capital gains rates on investments and tax rates on dividends should be continually held in check and eventually eliminated.
It must look to permanently eliminate both the Death Tax and the Alternative Minimum Tax. Both of these “additional taxes” were devised and set up in order to “make sure that the rich paid their fair share of taxes”. The greatest and most divisive hoax that Liberalism ever pulled was to convince poor people that people wealthier than they, needed to be punished. The claim that the “rich don’t pay their fair share of taxes” represents an asinine misunderstanding of basic mathematics and a willingness to divide people. Sadly, this claim seems to be the bread and butter of the Democrat playbook.
It must look to curb taxes on Energy. When you tax energy, you suppress its production causing its price to skyrocket (Decreased production causes decreased supply. When demand is high and supply is low, prices go up. Hence, $4.00 per gallon) The Liberal answer (as well as John McCain)to this is to cap demand by punishing the use of energy products. A conservative agenda on tax reform must focus on allowing the free market to work instead of trying to control its major facets with punitive and confiscatory measures. A strict reduction in fuel taxes as well as energy production taxes is necessary.
I vote for step Four: No Taxes. Choke the big spending inflated government.
While we’re living in that dream world, let’s find the government that would vote itself to choke =)
Unless I’m missing something, it looks like all of your proposals are cuts.
We must put the budget on the road to recovery.
As far as the theoretical realm goes, here’s what Adam Smith had to say about progressive taxation:
Oh, I almost forgot,
According to the California Nurses Association, healthcare-for-profit must be abolished in order to have humane healthcare.
I think I trust their frontline experience over the word of “free market” economists.
Are you surprised that a conservative agenda is comprised mainly of tax cuts and not tax hikes?
Smith makes a decent point. However, at no point in this plan is there anything resembling the destruction of the “progressive taxation” structure to which you and he are referring. This quote fits into Smith’s broader claim that those with greater income should pay greater portions of that income into the national treasury. This is, in fact, in line with our current taxation. Even a cursory review of American tax policy will tell you that rich people pay exponentially more as well as greater percentages of their income as taxes. Additionally, all of the deductions and credits afforded to middle class Americans are quickly and completely phased out for the wealthy.
Nurses. Frontline experience. I couldn’t disagree more. Nurses have experience in the medical treatment realm and they deal very little with any type of administration. This would be like allowing an offensive lineman to negotiate an NFL team’s collective bargaining agreement with the entire league. He’s great a what he knows (which is pushing other big guys around) but handing him the keys to the entire ship is inviting disaster. I’ll take my free market economists every day of the week…
Well, the nurses dispute your claim that they “deal very little with any type of aministration.”
Heres another perspective on tax reform:
Keats, you’d be surprised at how much of that I might agree with lol
… and tax the unions as well.
Wow, I left a comment on this thread:
http://www.anamericanfrontporch.com/2006/11/why-front-porch.html
criticizing “American Front Porch” that , contary to their “hi faluttin” claims, they were all about nothin’ but liberal bashin’.
It dissappeared. Imagine that.
whoops typo, meant to say “contrary”.
Let freedom ring, just do it somewhere else.
An Americam Front Porch.
Fuck me, another typo.
“American”,
off you go then
(fuck off punK)
It was removed because of where you wrote it.
You could have said, “Great Blog” and it would have been covered. There was another comment after yours that disagreed with your premise and was not very nice.
We simply stopped allowing comments on that particular post because it was an explanation of why Nathan started it. I think you’ll find it unlikely that we are into censorship.
Repost it wherever you wish.
If memory serves it said something like, “Bollocks! All you’ve done is liberal bash.” We’ll repost it for you if you like.
Hey, Cam… don’t you have an Army captain to impersonate this morning?
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Nah, I’m pretty spent from impersonating Glen Dean, Serr8d, captainbrainstorm, and number 9 the last few days.
I have nothing better to do with my time. Besides, I have to go practice my weekly ritual of finding meaning to my life in a indoctrinating religion because I’m not smart enough to explain every single thing in the world around me. Isn’t it what us dumb southerners do? I’m just haplessly following along with the sheep and my backward heritage.
Besides, Jeffy, I thought I wouldn’t be worth your time being “lower than snail shit” and all. You’re vastly superior to me. Find some comfort in that.
It’s interesting that you bring up attending religious services, Cam. I don’t attend a church, but impersonating others in an Internet forum is, to me, a clear moral failing. But since I am not a church-goer, I’m sure my moral compass must be reading falsely. Will you be discussing this episode with your pastor?
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its too bad christinsanity isn’t real, that way at least we would know that prick ass chickenhawk bullies like cameron would be getting what they deserve.
I thought I wouldn’t be worth your time being “lower than snail shit” and all.
It’s not about you, Cam. It’s about alerting others not to step in the snail shit.
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H.B. Keats,
You are quoting a California based organization for your claims here. I work with nurses everyday in 3 different states and they are scared to death of government run healthcare. Even VA employees are terrified of the idea. You need to do a little more research.
H.B.? Does that mean Highly Biased?
I almost forgot,
According to the California Nurses Association, healthcare-for-profit must be abolished in order to have humane healthcare.
I think I trust their frontline experience over the word of “free market” economists.
FYI– the only possible way for william to have “discovered” anyone doing any falsifications is by guessing on sitemeter. Nice work there Mr. Matlock but ya missed it.
Secondly, I created An American Front Porch for dialogue of all sorts. If you do not like it, you are welcomed to that opinion. Glen has more lax rules on this site than I do on mine, however you’d be welcome to comment on a post if you see fit.
We’ve only deleted two or three comments in the history of the site. A couple were spambots posting nonsensical dribblings….and your comment where it didn’t belong. So you’re in great company, really. I treat my site like I treat my house. All are welcome in the yard, until you demonstrate a lack of respect for it, then you may go now. Notice I don’t see fit to go to your site, simply because I am aware that trying to speak with you accomplishes little at best.
The Porch isn’t just a political blog. I have a life. My wife posts there as well, and depending on what you bring, it’s sometimes fitting to remove trash from a lady’s presence.
Seriously, this is not to encite a riot. Just a simple explanation of why I do things the way I do on my site. You’re always welcome to visit. Just behave.
Yeah, Jeff, I’ll be in confession all week trying to purge my soul of the writings I did not author.
I’ll also need counseling from all the belittling words you used on a website. I am absolutely petrified by them, not to mention your laudable physical prowess.
Nathan,
So ‘bollocks’ is too risqué for your wife’s tender sensibilities?
Either that, or by ‘behave’ you mean “smile and nod politely”.
Gotcha’
Yeah, Jeff, I’ll be in confession all week trying to purge my soul of the writings I did not author.
You never denied that MAJOR FAIL came from your computer, but you alluded to the words being those of your student, presumably stationed in Afghanistan. So… explain it to me. Is your student reading TennesseeFree.com, and passing on his comments for you to post, by proxy?
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Cowboy,
Yeah, I don’t remember asserting that “government run healthcare” is necessarily the only alternative, but I guess keeping people scared to death is a great propaganda weapon for those that vehemently endorse the status-quo.
In the meantime, do you want to dispute any of the following statements:
2=2+4
The sky is blue.
Stockholders’ interests are virtually always in diametric opposition to patients’ interests.
2+2=4
Bad timing on the shift key, but you get the idea.
It’s very sad that Cam can’t just admit that he got busted lying, caught impersonating a U.S. Serviceman, solely in service to Cam’s ideological agenda. What a fuckstick.
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I know it’s not as inviting as a young, nubile cat’s ass for you, but go ahead and kiss mine, Buttercup.
I didn’t write it. Deal with it.
I didn’t write it.
So… how is it that it came to pass that those words came from your computer?
Don’t explain. We already know.
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