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Deficits: Taxing The Rich

October 31, 2010 5:15 PM

David Stockman, Ronald Reagan's budget director who once preached tax cuts, is now in favor of putting a one-time surtax on the rich. Lesley Stahl reports and finds just such a proposal on the ballot in the state of Washington.

Deficits: The Battle Over Taxing The Rich

60 Minutes OverTimeTax Hikes for All?

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by gr8finplnr November 8, 2010 1:38 AM EST
The "no more tax" montra is simply a natural reaction to a continuous history of wasteful government spending. The only way to kill the beast is starve it.
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by Truthintaxation November 5, 2010 3:50 PM EDT
Really excited to see that national media is finally beginning to expose the bull**!; to which politician's expose us. There are more things that need to be exposed. A few are as follow.

Because we have a free market economy (as we should) a tax cut makes no difference to about 90% of us taxpayers except for a brief trancient effect before prices rise to soak up the added after tax income. Have you not noticed the effect that having a little extra in your wallet has on your willingness to fork it over for the things you need or want? The big jump in crude oil prices which we paid for at gas pumps at $4 per gallon with the last Bush stimulus rebate were a pretty blatant illustration of that effect. That one happened faster than usual because it was announced a month or two before we actually received checks. The commodity hoarders had time to prepare.

The increase in tax revenue which followed the HUGE tax cuts for the wealthiest folks during the Reagan administration which the Republicans keep harping on was one such transient effect. So also is the boost in the economy that the Fed gets by lowering interest rates. In the long term, those cuts have only caused economic trouble including but not limited to huge deficits and inflation in prices of big ticket items. The cost of health care being one noteworthy one.

I believe that raising income taxes is not a disincentive to small business hiring because employee wages and other costs are deductible from taxable income.

A "flat tax" so heavily oversold by Steve (The Pied Piper) Forbes does not, as he wants you to believe simplify anything. Any teenager of average intelligence and arithmetic ability could calculate his tax from the Tax Rate Schedule (or as we are required to do) look it up in the tax table. The complicated part of filing income tax is reading all the doubletalk about the circumstances under which different items paid or receive are income, deduction, or credits. Flat tax does nothing for all that, it just makes The Pied Piper and his cronies wealthier at our expense.



And, I'm sure there is more. Especially about why unemployment has become such a problem.
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by dallascole1 November 5, 2010 2:24 AM EDT
my question id how much of the personnal income tax collected goes to repay interest on money borrowed from the fed reserve and how much actually funds other programs ?
can any one answer that one
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by lbinen November 4, 2010 5:46 PM EDT
Ms. Stahl's conclusion that not wanting to pay higher taxes is tantamount to "greed", is a false, ingrained liberal and biased attitude. The most generous people I know give a large percentage of their monthly paycheck to various charities. They also do 4-6 hours weekly of unpaid volunteer work--one in a soup kitchen and one with disabled children. They believe giving directly, not channeling it through US, is more satifying for both the donor and recipient. Neither want to pay more taxes. They're certainly not, as Ms. Stahl says, greedy.
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by dschwarpa November 4, 2010 5:26 PM EDT
Once upon a time in this country we taxed less and gave more. Americans are the most generous people in the world, but we don't appreciate our hard earned dollars ripped from us by the government to be wasted in a thousand different ways and to line the pockets of politicians and their friends. There is grace in freely giving to those that are needy, but their is no grace by being forced to do it or go to jail or lose your house courtesy of the IRS. I want to see less forced distribution and more community based efforts where generous people can give more of their time, talent and resources. The people receiving these benefits will not longer receive them as entitlements, and will appreciate what they receive more than they do now. We tried to replace our churches and community organizations with large centralized government that sends a cold check in the mail asking for little in return. It doesn't work. People in need can be helped by those in volunteer organizations to change their circumstances, but more and more needy just want that check or food stamps without being judged or having to think who paid for their check or benefits. With this we could solve many problems and save our society billions if not trillions of dollars down the road. Trying to carry an rapidly increasing welfare class on the backs of the middle class and a few rich is not either the example we wish to set for our younger generations, nor is it the solutions to the problems we now face. Direct interaction with the needy by volunteers and those providing help in addition to motivation on the part of those receiving the help provides a solid bond of goodwill rather than the class warfare we are now experiencing. There are not enough rich to pay for the entitlements we now face with social security, medicaid, welfare, food stamps, prescription drug care, Obamacare. We need to find another way. Let people be judged on their true generosity and ability to help rather than what they owe the government or their status in society.
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by vcvenus November 3, 2010 7:36 PM EDT
This practically brings tears to my eyes. I am a single woman with no kids and I do not own a home and I pay 20K per year in taxes--and that's after tax rebates. This guy owns a profitable company and he doesn't want to pay a measly 50K per year? It speaks volumes about their values and upbringing. You pay taxes because you are a part of a nation and in a nation we all chip in to make our country a great country, a country that takes care of its people. The greed is just demoralizing. They should be ashamed.
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by Solutions_101 November 3, 2010 4:56 AM EDT
I cannot believe this initiative was voted down! As it is, we Americans actually only pay a relatively small amount in taxes (when compared to the taxes paid in other countries), for which we receive a free public education, fine roads & transportation systems, national defense, retirement, law enforcement, etc. We Americans are so used to getting everything for almost free--that now 'WE THE PEOPLE' want to get all these services for ABSOLUTELY FREE, meaning WITHOUT PAYING TAXES!!! This is idiotic!

We'll see how voters feel when their house is on fire and no one shows up to help because there were insufficient funds to pay for firefighters.

We'll see how voters feel when crime increases drastically and no one responds to pleas for help because there were insufficient funds to pay for law enforcement.

We'll see how voters feel when their children are not allowed to go to school because there were insufficient funds to pay for school teachers, school administrators, school bus transportation, etc.

The result will be complete and utter chaos and, when that day comes (probably in the very near future), they will wish they'd been just a little more willing to pay taxes--a little less greedy!!! Idiots!!!
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by noloyalisti November 2, 2010 4:00 PM EDT
That's what I'm talking about. I have a huge sign I take to the corner almost every week that says Tax the Rich. When Reagan took over the Top 1% got 9% of the income of the US, now it is over 23%. What is wrong with that picture?
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by esverdad November 2, 2010 3:09 PM EDT
The Initiative when written was favorable and would have been just fine. However, the Senators who got a hold of it did change it down in later paragraphs and by striking through several of the paragraphs that disallowed the previous law in Washington that makes all taxes transferable to other income brackets after 2 years and allows the state to include the tax in the general fund is why I find this tax initiative just another try at nailing everybody. This initiative is meant to get a loophole in everyone. It may have been put forward in good faith but in the end it is just a stab in the back. I think if the rich want to remain wealthy in this country they should start contributing to the infrastructure more adroitly. Rockefeller didn't just make money. He built the Railroads, JP Morgan built things, Carnegie invested in Iron! We don't See the Government Paying for Boeing just buying from Boeing! The problem we have is the Wealthy are really not contributing any longer they're just syphoning. What we need is a wealthy person or group of the wealthy to actually take on the alternative energy problem. I have an Idea that would make Electrical power from every household in America and even on the plains of Kenya and yet I get no interest. Why is that do you think? Is it because the extremely wealthy don't want to go against the status quo? I would decry this situation and ask If you could get a kit for $60 that you could put $30 a month into it for 6 months then get back $30(+ depending on energy cost per KWH) a month for the rest of your life would you? Add a few more over a few years and you're energy independent. 600 Watts from one kit in Kenya would power a whole household or Ranger Station for who knows how long...
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by DownwithSEIU November 2, 2010 2:38 PM EDT
Let's not let facts get in the way of a good story. First off- this law allows the legislature to expand the tax after two years to the middle class. Second- the legislature "backs out" previous funding for education and health and replaces it with tax revenue from new initiatives that pass. Last- nothing was said about re negotiating the fat state pensions or the contracts give to the SEIU. SEIU workers should be paid fair market value, not over inflated salaries allowed because of state monolopies. The models of income tax states such as: CA, CT, OH and MD are not inspiring economic models.
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