8/10/2012
The truth about taxes
By Bill Kaplan
The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com .
Although this column is about taxes, I would be remiss to ignore the carnage in Oak Creek. I want to express my heartfelt condolences to the Sikh community, and thank Democratic and Republican political leaders for stepping forward to condemn the slaughter. The killer does Not define Wisconsin. There is hate and racism in Wisconsin. But overall it is a tolerant state. We are all Sikhs and Americans.
Which brings me to taxes. It's time to recognize that whatever our political differences we are all citizens in the same nation. We need to can the rhetoric and vitriol. Let's try.
The Grand Old Party (GOP) has a long honorable tradition of paying for what we need government to do. President Reagan raised taxes 11 times after his previous tax cuts and increased spending led to higher deficits. However, President Bush, abetted by GOP Rep. Paul Ryan, from 2001 to 2009, recklessly added over $5 trillion to the national debt: humongous tax cuts (tilted to the rich), two wars on a credit card, presiding over a housing financial bubble leading to the worst economic crisis since the 1930s and TARP, a necessary but painful rescue of our financial system. That's what President Obama inherited, and the loss of over 500,000 jobs a month.
Most economists and the Congressional Budget Office believe the Federal Reserve, TARP, the Obama Recovery Act with aid to states, public works and tax cuts, as well as the rescue of the U.S. auto industry prevented an economic collapse, stabilized the economy and began reducing unemployment. But deficits grew. That's what happens when you have a near-economic collapse on top of deficit busting budgets with a crazy tax system. A few facts:
* The Congressional Budget Office has said that the top 1 percent receives 17 percent of after-tax household income. And, the richest 20 percent receives 53 percent of after-tax household income.
* 45 percent of households pay no federal taxes.
* Corporate income tax receipts as a percent of total tax receipts are at an historic low.
* Federal taxes are about 15 percent of gross domestic product, the lowest since the 1950s.
Yet we are still playing games. GOP Representative Paul Ryan's budget calls for $4.6 trillion in more tax cuts plus another $5.4 trillion in making the Bush tax cuts permanent. And, the House voted along party lines (Wisconsin GOP Reps. - yes and Wisconsin Democratic Reps. - no) to extend the Bush tax cuts through 2013. It prevents increases in estate taxes and dividends / capital gains while letting tax breaks for the middle class and working poor expire, e.g., reducing tax credits for college, fewer families eligible for child-tax credits and cutting back the earned income tax credit. Sad. What's needed is aid to states and public works spending to further reduce unemployment, coupled with a longer-range plan for spending cuts and tax increases that can be phased in as the economy further improves. We used to do this in a bipartisan manner. In fact all 5 budget deals from the 1980s to the early 1990s cut spending and increased taxes, with tax increases accounting for about 61 cents of every dollar saved. We can do this. We are Americans.
-- Kaplan wrote a guest column from Washington, D.C. for the Wisconsin State Journal from 1995 to 2009.
The truth about taxes
By Bill Kaplan
The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com .
Although this column is about taxes, I would be remiss to ignore the carnage in Oak Creek. I want to express my heartfelt condolences to the Sikh community, and thank Democratic and Republican political leaders for stepping forward to condemn the slaughter. The killer does Not define Wisconsin. There is hate and racism in Wisconsin. But overall it is a tolerant state. We are all Sikhs and Americans.
Which brings me to taxes. It's time to recognize that whatever our political differences we are all citizens in the same nation. We need to can the rhetoric and vitriol. Let's try.
The Grand Old Party (GOP) has a long honorable tradition of paying for what we need government to do. President Reagan raised taxes 11 times after his previous tax cuts and increased spending led to higher deficits. However, President Bush, abetted by GOP Rep. Paul Ryan, from 2001 to 2009, recklessly added over $5 trillion to the national debt: humongous tax cuts (tilted to the rich), two wars on a credit card, presiding over a housing financial bubble leading to the worst economic crisis since the 1930s and TARP, a necessary but painful rescue of our financial system. That's what President Obama inherited, and the loss of over 500,000 jobs a month.
Most economists and the Congressional Budget Office believe the Federal Reserve, TARP, the Obama Recovery Act with aid to states, public works and tax cuts, as well as the rescue of the U.S. auto industry prevented an economic collapse, stabilized the economy and began reducing unemployment. But deficits grew. That's what happens when you have a near-economic collapse on top of deficit busting budgets with a crazy tax system. A few facts:
* The Congressional Budget Office has said that the top 1 percent receives 17 percent of after-tax household income. And, the richest 20 percent receives 53 percent of after-tax household income.
* 45 percent of households pay no federal taxes.
* Corporate income tax receipts as a percent of total tax receipts are at an historic low.
* Federal taxes are about 15 percent of gross domestic product, the lowest since the 1950s.
Yet we are still playing games. GOP Representative Paul Ryan's budget calls for $4.6 trillion in more tax cuts plus another $5.4 trillion in making the Bush tax cuts permanent. And, the House voted along party lines (Wisconsin GOP Reps. - yes and Wisconsin Democratic Reps. - no) to extend the Bush tax cuts through 2013. It prevents increases in estate taxes and dividends / capital gains while letting tax breaks for the middle class and working poor expire, e.g., reducing tax credits for college, fewer families eligible for child-tax credits and cutting back the earned income tax credit. Sad. What's needed is aid to states and public works spending to further reduce unemployment, coupled with a longer-range plan for spending cuts and tax increases that can be phased in as the economy further improves. We used to do this in a bipartisan manner. In fact all 5 budget deals from the 1980s to the early 1990s cut spending and increased taxes, with tax increases accounting for about 61 cents of every dollar saved. We can do this. We are Americans.
-- Kaplan wrote a guest column from Washington, D.C. for the Wisconsin State Journal from 1995 to 2009.