R i g h t a r d i a: Beware of Republicans bearing tax gifts

Friday, September 2, 2011

Beware of Republicans bearing tax gifts

Jon Huntsman, latest GOP used car salesman

Rightrdia rarely is critical of moderate Republicans who have recently become a rare breed. It's the slack jawed christo-fascists like Michele Bachmann and Rick Perry who scare us. Both are ideologues who want to return the US to its glory days that are long gone.

Rightardia liked Charlie Crist, the former governor of Florida. We also admire local politicians like Peter Nehr and Mike Fasano, both who are Republicans.

We thought Jon Huntsman might be one of those rare GOP moderates we could support, but his tax plan is simply atrocious.

We agree that taxes in the US need reform, but hardly by the GOP ideologues who are in congress. Obama and the Pelosi congress should have reformed the tax system that was extensively discussed in the general election. but the Dems were too timid to fight the GOP on taxes.

First, Jon huntsman wants to reduce the marginal income tax rates to 8, 14 and 24 per cent. He wants to eliminate tax loopholes on housing for the lower middle and working classes.

Rightardia is not sure what Huntsman has in mind here because most Americans have to itemize to take tax deductions for the interest mortgage on their home. We assume there is some sort of tax credit the least affluent Americans get when they purchase a home that can be used to adjust income.

Huntsman also wants to eliminate the taxes on capital gains and dividends. Well, capital gains mainly affect the most affluent Americans. More the 91 per cent of capital gains are paid by people making more than S100,000 per year. More than 77 per cent is paid by people making more than $200,000 per year.

Most billionaires and millionaires make most of their income on capital gains. Such a change to the tax code would be a gift to the 'have-mores" that were GW Bush's base.

Finally Huntsman wants to cut corporate tax rates and loopholes. Huntsman claims the US has the highest corporate tax rate in the industrial world, by the Japanese tax rate is higher at 39.5 per cent.

As the NY Times point out:

But by taking advantage of myriad breaks and loopholes that other countries generally do not offer, United States corporations pay only slightly more on average than their counterparts in other industrial countries. And some American corporations use aggressive strategies to pay less — often far less — than their competitors abroad and at home. A Government Accountability Office study released in 2008 found that 55 percent of United States companies paid no federal income taxes during at least one year in a seven-year period it studied.

Keep in mind too that the corporate income tax is mainly applied to the large Fortune 1000 C corporations.

The mom and pops S corporations do not pay corporate income tax because the tax burden on an S corporation is passed on to the owners and stock holders,usually other family members, as ordinary income.

Therefore, Rightrdia just crossed Jon Huntman off its 'good Republican" list. Huntmans' tax plan is political baloney.

sources:

http://abcnews.go.com/blogs/politics/2011/08/jon-huntsmans-jobs-plan-time-to-compete/

http://www.csmonitor.com/Business/The-Reformed-Broker/2011/0901/Jon-Huntsman-tax-smasher

http://www.nytimes.com/2011/05/03/business/economy/03rates.html

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