Showing posts with label progressive taxation. Show all posts
Showing posts with label progressive taxation. Show all posts

Tuesday, September 26, 2017

Told ya: Trump to raise lowest tax bracket from 10% to 12%

Story here:

Top White House and GOP leaders have agreed to raise the lowest individual tax rate from 10 to 12 percent, paired with doubling the standard deduction, 5 senior Republicans tell us.

The standard deduction becomes the football in this scheme. If the doubling survives intact, which is hardly certain, down the line someone can say it must be reduced, without advocating a change in the bracket percentage and voila, you've got a nice little tax increase on the poorest members of society without directly raising taxes.

This ridiculous tinkering with rates and deductions just continues ad infinitum since 1913.

As with the Obamacare repeal efforts, there are no guiding principles informing the tax reform debate.

Mandating health coverage at the federal level is tyrannical, and so is the income tax, quite apart from its deliberate inequalities.

Trump kept insisting on a replacement for Obamacare as well as a system of progressive taxation during his speechifying.

There's no there there. 

Monday, May 5, 2014

It's time to treat the rich like equals: Dean Kalahar speaks up for proportional taxation

Here, although the ahistorical reading of Scripture by liberals on behalf of progressive taxation is hardly new:

Proportional taxes actually meet the equity and ability to pay principles of effective, efficient, and "fair" taxes. With a proportional tax everyone pays the same percentage but those who earn or spend more pay more. For example: if you buy a $50,000 car and the Fair/proportional tax is 10%, then you pay $5,000 in tax. If, on the other hand, you buy a $5,000 car, your tax is $500. By paying the same percentage, everyone is offered the dignity of being treated equally, and those who afford more pay more. Isn't that what liberals are always demanding?

"We have to raise the progressive tax rate so the "rich" pay their "fair share."

In reality, progressive tax rates, like the federal income tax, might meet the ability to pay principle but not the equity principle. Progressive taxes have varied tax rate percentages depending on income so taxpayers are not treated equally. Currently the top 20% of income earners pay more than 90% of the income taxes, while the bottom 50% pays less than 3% of the income taxes. Who's actually "paying their fair share?"

Monday, December 31, 2012

Senate Cliff Deal Settles For TEN TIMES LESS Revenue Than Cliff-Diving

As reported here:


"Before [Obama] spoke, details of the emerging deal emerged. It would raise $600 billion in revenue over the next 10 years [emphasis added] by increasing tax rates for individuals making more than $400,000 and households making above $450,000 annually, officials familiar with the talks said.  ... The Biden-McConnell negotiations appeared to offer the last hope for avoiding the fiscal cliff of $600 billion in tax increases and spending cuts that economists fear could throw the country back into recession."

$600 billion over ten years?

Notice how CNBC leaves out "per year" after "$600 billion" in that second part of the snip after the elipsis. A $600 billion annual hit to the economy would be bad indeed, but only because it would post as a bookkeeping negative. Government spending counts as GDP, and removing $600 billion annually from the pool of funds normally tallied under GDP would "book" a recession before we even got there.

Look, by letting the Bush tax rates expire we were supposed to face a tax increase generating revenues of $500 billion PER YEAR or so, plus $100 billion per year from separately agreed to sequestration cuts to defense and social spending from August 2011's debt-ceiling imbroglio. That's why this fiscal cliff was such a big deal. We were talking $600 billion per year in the case of the Bush tax cuts expiring, not $60 billion per year as the Senate has now agreed. Tax increases on the first $9,000 of income ALONE would have generated $65 billion per year by letting the Bush tax cuts expire on the lowest wage earners for the simple reason that that tax increase affects EVERYONE'S first $9,000 of income. That's how progressive taxation works. Keep going on up the income ladder with all those expiring Bush tax rates reverting to the higher Clinton rates and soon you are talking about $500-$600 billion PER YEAR in revenues. What do you think Obama and Dirty Harry Reid have been greedily eyeing after all? That they are caving to this "deal" just shows how really weak is their position, and how much power the House has in fact, if only they understood it.

Unless of course it is all an elaborate ruse, a trap for the House, which just might be conservative enough to reject the deal for its surrealism at a time when the political consensus in favor of "balance" is rearing its ugly head. In which case the political position of the conservative House will be marginalized more or less indefinitely, and the political power of the Senate enhanced.

The US Senate is clearly the most despicable institution in the federal system, if that were possible, for obscuring all this from the American people, for the way bipartisanship means liberals get to remain liberal while Republicans have to check their conservatism with the coat girl, for continuing to spend through borrowing, and especially for acting as a Super House in doing all this, trying to shove this crap down our throats just as it has already shoved the ObamaCare crap down our throats. Bills are supposed to originate in the House after all, but those which do are routinely ignored by the Senate, which thinks itself superior and possessed of a priority it does not have.

The problem clearly is the US Senate and the way it is elected, how long it serves, and the way it acts. If ever it were time to repeal the 17th Amendment, this is it.

Tuesday, November 13, 2012

Republicans Attacked ObamaCare. Hispanics Overwhelmingly Supported It. Any Questions?

The idea that Republicans alienate (can I say that?) Hispanics because Republicans are against amnesty for illegal immigrants is ludicrous. Hispanics love the welfare state and the party which stands for it, especially its newest iteration in ObamaCare:

The poll, which surveyed 887 likely Latino voters, shows that 62 percent of respondents approve of the overall job Obama has done with health care while in office, including his creation of the controversial plan for comprehensive health care reform. The poll was conducted the Sept. 11-13 and the margin of sampling error is +/- three percentage points.

More here.

Heather Mac Donald gets it right, for National Review, here:

"It is not immigration policy that creates the strong bond between Hispanics and the Democratic party, but the core Democratic principles of a more generous safety net, strong government intervention in the economy, and progressive taxation."

Friday, March 9, 2012

Obama and Romney Defend Progressive Taxation, But It's an Attack on Property and Justice

So says John Chapman, here:

To prove the moral case for progressivity — that, in President Obama’s exact words, the rich should pay “their fair share”, it would have to be shown that the marginal utility of the last $100,000 of income for the millionaire was providing less satisfaction than the last $1,000 for the worker making $10,000 in income.

To say this colloquially, Messrs. Obama and Romney feel that the millionaire should feel as much pain from losing his last 10% of income — should bear as much burden from this loss — as does the worker who loses his last 10%.  President Obama and evidently Governor Romney both posit that this is not the case with flat-rate taxation; they believe that the loss of the last 10% is not equiproportional for both without progressive rates.  But there is of course no way to know that empirically, and indeed, there are sound reasons to think the opposite is true — that progressive taxation is “unfair” to the higher-income earners by taking an “unjust” amount of their property from them, that ultimately harms the economy as a whole. ...

For steep progressivity is, at root, an attack on both property and blindness in the application of law.  Marginal rates of taxation now approach 60% in states like New York, and “the rich”, rather than acquiesce to Mr. Obama’s concept of paying their “fair share”, are simply vacating the state and/or ceasing in the taxable production of goods and services: chronic deficits leading to fiscal collapse then appear on the horizon in such cases.  Greece is a current exemplar of the extreme end to which this situation leads, and no amount of moralizing about “fairness” is relevant on the streets of Athens today.

Monday, November 21, 2011

Michael Barone Joins The Liberal Chorus Attacking Progressive Taxation

You heard me right, the liberal chorus attacking the progressive tax code, in this case the progressive tax code's deductibility provisions which are . . . well, progressive.

Barone and other liberal Republicans like Pat Toomey, Gang of Sixers and Gang of Twelvers do it on the grounds that the deductions for mortgage interest and state and local taxes help the $100K+ set more.

Nevermind "the rich" already pay the vast majority of the taxes. They want to make them pay even more because . . . well, they don't really need the money, and government does! And maybe liberals will like us more.

Talk about ceding the moral high ground to the left. Who would want to go to all the trouble of becoming rich just so that they can have the privilege of paying even more of the taxes?

Nevermind that the poor own one of the biggest "tax loss expenditures" in the form of transfer payments for the Earned Income Credit and the Child Tax Credit: $109 billion. Compare that to the mortgage interest deduction's tax loss cost to the Treasury : $88 billion.

Here is Barone:

[T]he big money you can get from eliminating tax preferences comes from three provisions that are widely popular.

The three are the charitable deduction, the home mortgage interest deduction, and the state and local tax deduction. ...


[T]he vast bulk of the "tax expenditures" -- the money the government doesn't receive because taxpayers deduct mortgage interest payments from total income -- goes to high earners . . ..


Well why shouldn't they under a progressive tax system? 


There's really no difference between Michael Barone and Republican advocates for "tax reform" and Democrats like Peter Orszag, for example, who makes an argument for similarly flattening deductibility for the rich by limiting their traditional deductions enjoyed by everyone across the income spectrum. What this amounts to is an admission that the progressive deductibility which we have now does NOT go hand in hand with the tax code's progressive taxation.

The current arrangement may not seem fair to flat taxers, but it is internally consistent. If you pay progressively more in taxes, your deductions should justly be progressively worth more to you. And so they are. If you pay progressively less in taxes, your deductions should justly be worth less to you, progressively. And so they are.

Proposals to limit deductions for one class of taxpayers amount to destroying the internal coherence of the progressive tax code itself. It is nothing less than an attack on the idea of progressivity and its fair unfairness, all in the name of extracting even more from the pockets of successful people.

Sheer nincompoopery. 

Sunday, November 6, 2011

Progressive Taxation: What Would Jesus Take?

The short answer is: all of it.

The long answer is more complicated.

Rush Limbaugh was a little ticked off a while back because liberals were asserting that Jesus would raise taxes, especially on the rich, which is, of course, a complete caricature of Jesus' teaching. Jesus wouldn't just raise taxes. He'd have made them completely irrelevant. For everyone.

The fact of the matter is, Jesus advocated complete liquidation of one's assets as a condition of discipleship. And after one did so liquidate, one would have no job to tax, either, because one would have to leave one's job to follow him.

Read the famous story about the rich man in Mark 10, paralleled in Matthew 19 and Luke 18, whom Jesus instructed to "sell whatsoever thou hast, and give to the poor." Liberals like to stop right there, with the obligations this story places on the rich.

Few like to reckon, neither liberals nor Christians it must be said, with Luke 14:33: "Whosoever he be of you that forsaketh not all that he hath, he cannot be my disciple."

Or with the calling of The Twelve Disciples, who left all and followed Jesus at his command, wandering around Galilee and Judea for something between one and three years until Jesus met his coup de grace, leaving their families unsupported for the time and becoming deadbeat dads in the process. A fine lot, they.

The truth is Jesus had only these 12 takers, and all of them proved to be something of a disappointment in the end, to say the least. Everyone else he called to discipleship found it a bit of a stretch, and followed at a distance, as it were, especially if a miracle feeding looked to be in the offing. The analogy would be to the Jewish proselytes to whom Paul preached his gospel, which they found rather more attractive than that whole circumcision thing required to become Jews.

Jesus' radicalism makes a certain kind of sense if the end of the world and The Final Judgment is just around the corner, which, of course, would make practical concerns beside the point. "Take no thought for your life, what ye shall eat, or what ye shall drink; nor yet for your body, what ye shall put on." "Some of you standing here will not taste death before you see the kingdom of God come with power."

This is the sort of stuff from which progressive liberalism, inspired by 19th Century liberal Christianity, tried to salvage something, denuded as it was of its supernaturalism and its apocalypticism. Inappropriately inserting their interpretation of a timeless Christian religion into American life, the progressives advocated a moral sensibility based on an unhistorical reading of the history of the religion, pretending all the while that only fundamentalists sought to impose a theocracy on America. In view of the high rates of taxation they came to advocate starting from 1913 (see here), one would almost gladly settle for the fundamentalists' theocracy with its tithe. What rich man in America wouldn't kill for a 10 percent tax rate?

Progressive taxation is a Christian heresy, arbitrarily ratcheting up the cost of discipleship citizenship the richer one gets, but never quite taking all the money, and never really justifying the varying costs in any given year, nor from year to year. Why is the price of entry at a lower rate for a relatively poorer rich man than for a richer rich man? Oh, progressivism tries to pretty this up with sayings of Jesus such as "To whom much is given, much is required" and the like, but at the expense of the full record which shows that Jesus demanded the same from everyone: a complete turning of one's back on one's former existence, no matter how great or how small by human standards of measurement. The Christian conception for this turning was summarized in a single word: "repentance." By contrast the paying of taxes in America is merely with reluctance.

In addition to this heresy, progressivism offers a related one which asserts that a better, improved future is just around the corner for all, if only the rich pay their fair share. This promise of an immanentized eschaton is a bastardized version of Jesus' belief in the coming sudden end of the world and of the in-breaking of the kingdom of God. But the reality is, like the prediction of the end of the world before it, the progressives' expected bright future never arrives, no matter how much money they throw at it.

The message of Jesus was much more stern and demanding than you will find in any church in America, or in the tax-writing committees of the Democratic caucus for that matter. Jesus' message was both much more pessimistic and much more undemocratic than most Americans would care to hear, which is why you don't hear it. It assumes that though many may be called, few end up being chosen. "Narrow is the gate and difficult the way that leads to life, and few there be that find it." (Note to Rev. Rob Bell).

To a significant degree, that pessimism about human nature naturally animated the American founding generation, which ever sought to restrain human evil by recourse to divided government and divided powers within it. They were as familiar with the weaknesses of human nature through their reading of ancient history, literature and philosophy as they were through their reading of the Gospels and St. Paul.

They knew better than most men before them or since that you can't make men good simply by passing laws.

Paul in particular had written that sin was not counted where there was no law, but that when the law came, sin revived, and he died. The analogy from the tax world is similar: If you want to witness tax evasion, multiply the taxes. So funding the new government was going to be at best a tricky business. Which is one reason I think the founders decided to export the sorry business of taxation the way they did, imposing tariffs on foreign trade to generate government revenues, instead of taxing the population directly. They knew it was better to raise the ire of the alien who could be kept at bay than the ire of the countryman who could not.

It's a lesson we need to relearn, and fast.  

Wednesday, September 7, 2011

Liberals Love Progressive Taxation. Progressive Tax Deductions? Not So Much.

Peter Orszag for Bloomberg here likes the idea of flat tax deductions for some reason, but not flat taxes.

Maybe it's because such equality in deductions would increase the taxes paid by the top 25 percent of taxpayers, who already contribute the vast majority of the government's revenue. Orszag sees no reason why a person in the top marginal tax bracket should have his taxes reduced at that marginal rate by a deduction for a 401K contribution, or a mortgage interest payment, or a donation to charity. He wants the deduction to be a flat deduction for everyone, regardless of income, which sounds to me like an admission that there's something actually immoral about progressivity in the tax code.

Sounds like progress to me, the logical implication of which is that the tax rate also should be one flat rate for all.

In the meantime it remains that "tax reform" is to "progressive" as "tax increase" is to "liberal." The name has been changed to disguise the guilty.