Wednesday, May 10, 2006

House Passes Tax Policy for Growth; Goes to Senate

Earlier today the House of Representatives passed a continuation of the 15% capital gains tax along with some reforms to the Alternative Minimum Tax (AMT).

I will not word this the way others are. On the one hand, they are saying Congress cut taxes $70B. This is not true. They are extending a tax rate which is already 15%. I would like to know why they haven't made it permanent.

The Democrats would like to say this is a tax cut for the rich. This is not true, either. The government does not get to put their greedy little hands on our money in the first place, so explain to me how the money in MY pocket is their loss?! Also, more and more middle class people are being forced to pay this tax.

They also say that government loses $70 billion or they have to 'pay for the money their going to lose'; however, each time there is a tax cut the government receives more, not less, tax receipts.

My question is this. Why do we tax corporations, businesses and capital gains anyway? They have already been taxed. Do you realize a corporation is not a person but an entity? We are the corporation. If we do no business with a certain corporation or business, they have to close their doors. (Unless, of course, it is an arm of the government. Then we just throw more money at a bad policy.)

On the other hand, the taxes they pay are added to the products we purchase. There are so many hidden taxes we pay, it is a crime for which only Congress could get away with and still smile at us to our face.

As far as the AMT is concerned, here is a little explanation. The AMT was originally created because in 1969 when there was a tax rate of 70%, many people refused to pay such high taxes. This caused the IRS and Congress to act.

They came up with the idea of an 'alternative minimum tax.' It sounded and looked good on paper, but it was very flawed. There was no initiative for adjustments for inflation. This caused many middle class people to get caught in the net. This tax was was never intended for the middle class.

This is the long and short of it. I would like to know why we even still have it? Why do we even have an IRS? I would much rather 'pay as I go' than put up with this. Imagine if we abolished Amendment XVI, and developed a national sales tax not to exceed 10%?

After all, why give more to the government than I give to God? :)

Update: The Senate passed the bill today, Thursday, May 11, 2006. It should be headed to the President for his signature. I just wonder...why didn't they make it permanent? Oh well...

Category: Economics and Policies.

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