|By Onnihs (Onnihs) on Wednesday, August 18, 2004 - 04:33 pm: Edit|
Heard an interesting piece on NPR this morning. Commentator Robert Reisch, who was the Labor Secretary during the Clinton administration, had an intriguing take on the White House's tax breaks.
Before Bush's tax cuts, a simple system of refilling the nation's deficit (now purportedly at a whopping $7 Trillion, from $5 trillion just 4 years before) was done by personal income taxes, among other things - the wealthy, who reside in a higher tax bracket, paid more taxes, thereby significantly contributing to the repayment of our deficit. The less wealthy paid less, but helped nontheless. This is called progressive tax cuts.. however, we know now that Bush's tax cuts favor the wealthy, and even more so if one resides in the top 1% annual income. The notion of progressive tax cuts no longer exists for our nation's enormously wealthy.
To compensate, the wealthy is now giving out loans to the U.S. treasury, straight from their savings accounts, in the forms of bonds and other junk. But here's the catch: obviously, loans must be paid back, and further, with interest. So the wealthy not only get their contributions in helping the deficit back (which were initially payed through their income taxes), but now get an additional X% interest accrued from the government.
And guess where those interest payments come from? That's right, you, me, the bulk of Americans.
In essence, the rich are making money off of our income taxes! Furthermore, the White House has proposed in February to allow Americans to pay less taxes on their savings. Interestingly, the average citizen doesn't even have any savings, and are in serious debt. But who has huge amounts of savings? The wealthy! It appears Bush is pushing for even MORE tax cuts for the super rich.
You tell me.
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