The Language of Taxation Needs an Overhaul
William Hershey of the Dayton Daily News, who seems more than a little bitter, recalled last month that:
Democrats controlled the Senate by just one vote, 17-16. All 17 voted for Democratic Gov. Dick Celeste’s so-called “90 percent tax hike” — a renewal of a temporary income tax increase plus an increase. None of the Republicans voted for it.
Senate Republicans used the tax issue to grab control of the Senate in the 1984 elections and have maintained that majority for 25 years. The way the Republicans told the story, every Democratic senator who voted for the tax increase and was up for re-election cast the 17th and decisive vote.
“It destroyed us,” [former Senate Democratic leader Harry] Meshel recalled.
The tax changes proposed by Congress to fund its statist designs on health care represent a clarion call to resurrect the just-described language.
Though the draft bill has been released, it’s clear that the legislation will go through the usual sausage grinding. So for simplicity’s sake, I’m going to use these core elements of what House leaders want as the Wall Street Journal understood them on Monday:
- An 8% payroll tax surcharge (you read that right), “that would apply to all firms with 25 or more workers that don’t offer health insurance to their employees.”
- If nothing is done about them and the president sticks to his oft-repeated campaign promise: increasing federal income tax rates to their level before the Bush tax cuts of 2001 and 2003 for those earning above about $250,000.
- Beyond said restoration, an income tax surcharge of up to 5.4%.
Since the tax-and-spenders are more clever, it’s not easy to frame these rate increases as tax increases. But it can be done — and I will do it.
Let’s take someone who would be subject to all of the taxes noted above; there are plenty of small businesses whose owners pay themselves well but who, for various reasons (which, frankly, should be none of our business), don’t offer their employees health insurance. Using rates currently in effect and the proposed rates as calculated by the Journal, this would be the before-and-after picture for such business owners in Ohio who are considering withdrawing additional salary:
Now you see how really devastating the House’s proposal is:
- The tax increase isn’t the rate change of 11%; it’s the increase in the rate, which is 31%. The House surtax proposal and the return to the rates in effect before Bush’s tax cuts will cause affected persons to pay $46 out of every $100 they try to pay themselves. That’s 31% more and it’s not arguable.
- Properly stated, the marginal payroll rate the affected persons will pay, which would increase from 2.9% to 10.9%, represents a whopping, inarguable 276% tax increase.
- The affected persons’ marginal federal tax rate will increase by 50%. Beyond that, out of every additional $100 paid, they will only get to keep $43.10 instead of $62.10. Thus, they will have 31% less with which to pay state and city income taxes (coming up), other taxes not listed such as property taxes, and their personal and family bills.
- When combined with Ohio’s already-existing state and municipal income taxes (the big-city rate is the average found in Ohio’s largest cities), the affected person’s marginal rate goes from its current 46% to a truly confiscatory 65%. That’s a 41% tax increase. At that level, it leaves affected persons with a stunning 35% less money to pay other taxes not listed and their personal and family bills.
In sum, Congress wants to make a very small percentage of people pay roughly 50% more to the federal government than they do currently and, depending on their state of residence, to take about one-third of what they currently live on — all to fund other people’s health care.
Now that is an opposition message that would, I believe, go a long way towards stopping this utter nonsense dead in its tracks.
More DemocRat gibberish and double speak.
Of course I was with your to start with,Tom Blumer,but you make a powerful argument. But how many people will understand it. It has to be made short and simple,boiled down to half a paragraph and a simple one at that. Boiled down to two or three sound bites to be really effective.
The Democrat Party is a criminal enterprise.
#2, you’re more than welcome to try to improve on the second-last paragraph, which was my sound bite dry run, beyond deleting “depending on their state of residence.”
Is “we’re screwed if obamacare passes” a small enough sound bite ?
How about something like this:
The real problem with all of these tax increases is not the rate increase, but the combined total actually paid. Most of those effected are those who HIRE OTHERS, and when you penalize them who are the first to suffer if they decide to walk away?
That’s right you tax raisers out there, we end up with MORE lost jobs.
Plain and simple math people. I know I know, we purposefully made our population too stupid to figure out math but come on!
For every $100 I take in I used to pay $46 leaving me with a simple $54 dollars. But after all of these instead of that $54 dollars I’ll only get $35?! Tell me you can’t figure that bit of math out!!
How “bout: “Sure the rich can afford it, but can you?”
Democratic Party = Economic terrorists
How patently unfair of Tom and you others. Don’t you understand that these are not taxes. These increases are investments in your future. Naturally, these investments, like those in mutual funds, will require you to pay administrative costs. How does 65% a year sound?
I do not care what they call it, it just means that it will cost more just to live and I do not like it one bit.
Slavery for everyone equally.
How’s that for ‘reparations’?
We have truth in lending, why not have truth in taxation? the thing is, Dems need confusion and ignorance to advance their agenda. Everything out of their mouths is carefully crafted to obfuscate, spin, hide, and obscure the impact of their policies and to deflect blame. Where’s the transparency Obama? Where’s the mandatory timeframe for reading these enormous bills? Looks to me like transparency will be along shortly after the country has been socialized and enslaved by debt. I’m sure the 5-day waiting period will be along for more important legislation than healthcare and cap and trade, like whether or not to recognize the Armenian genocide, or whether or not to commemorate Michael Jackson. You know, the really big things that have enormous impacts on our economy.
Middle class and poor democrats – wake up!! You are being lied to and used to seal your own spot in the caste system that your elitist leaders have in store!! Upward mobility is what has always made this country great, but its opportunities are drying up by the day under this congress and this administration. I thought liberalism was all about questioning authority? It seems these days to be all about taking your govt medicine and ging to sleep. Pathetic.
it’s time to sue the congress for it’s separate and unequal healthcare plan. congress will not and does not participate in the same healthcare system as other americans. where is the equality and social justice? it really gets me going when i think i’m paying multi-millionaire congress peoples medical premiums. why no asset testing?