Democrats Vs Republicans On Taxes
While Republicans believe in balancing spending cuts with tax cuts across the board, Democrats believe in cutting taxes for the middle and lower class, while raising them for the upper class. They believe in a higher marginal rate, with income tax being higher for those who make more, as opposed to the Republican views that taxes should be equal percentages for all income levels. In the 2012 Party Platform, 56% of republicans opposed raising taxes on those who earned over $250,000. This isnt to say that Republicans do not believe in focusing relief on the middle and lower classes; they do, however, believe in relief for all Americans, and not in raising taxes on the upper classes.
What Do Republicans Believe In
Do all Republicans believe the same things? Of course not. Rarely do members of a single political group agree on all issues. Even among Republicans, there are differences of opinion. As a group, they do not agree on every issue.
Some folks vote Republican because of fiscal concerns. Often, that trumps concerns they may have about social issues. Others are less interested in the fiscal position of the party. They vote they way they do because of religion. They believe Republicans are the party of morality. Some simply want less government. They believe only Republicans can solve the problem of big government. Republicans spend less . They lower taxes: some people vote for that alone.
However, the Republican Party does stand for certain things. So I’m answering with regard to the party as a whole. Call it a platform. Call them core beliefs. The vast majority of Republicans adhere to certain ideas.
So what do Republicans believe? Here are their basic tenets:
Conservatives Dont Hate Socialism They Hate Equality
They want to take away your hamburgers, former Trump aide Sebastian Gorka in February. This is what Stalin dreamt about America will never be a socialist country! The Conservative Political Action Conference audience cheered. The video played on my phone as I waved at Danny, the homeless man who begs for food every morning at the Newark Penn Station, where scores of poor people sleep in wheelchairs or lean on crutches or stand by the delis to ask for change.
These folks need more than hamburgers. They need jobs and homes. Yet, as the 2020 election season starts, Trump has branded progressives as socialists who will steal property and bring tyranny. The presidents fearmongering contrasts with the actual Green New Deal that some Democrats support but failed to pass in the GOP-controlled Senate. Its a fear driven by ideology. Republicans paint the poor as undeserving, marked by cultural or personal character flaws. Whereas Democratic Socialists believe people have the ability to run the economy and society to meet their needs. Why this difference in perception? It is because Republicans arent afraid of socialism they are afraid of equality with people they see as inferior.
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To Fund The $35 Trillion Budget Plan Democrats Aim To Undo Trump Tax Cuts
To Fund The $3.5 Trillion Budget Plan, Democrats Aim To Undo Trump Tax Cuts
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The 10% cuts were “across the board,” as he liked to say, implying they were of equal value to all. The dollar value of the cuts was, of course, far larger for those with larger incomes. Moreover, the tax law changes that accompanied the rate cuts made it easier for individuals and corporations to “write off” various forms of income and spending to lower their tax bills further. The tax rate for capital gains, money made from successful investing, would come down from 28% to 20%.
Reagan did not get everything he sought in this initial foray against high taxes and progressivity. The Senate trimmed the third year of the tax cut from 10% to 5%, and it would take a second bill, the Tax Reform Act of 1986, to pull the marginal top rate all the way down to 28%.
But Reagan’s tax cuts in 1981 constituted the strongest move away from progressivity in the income tax since the tax was initiated in the Civil War.
They were the culmination of rising anti-tax sentiment in the late 1970s, when some states adopted tax limitations by popular referendum. That spirit was kept alive in the decades to come by groups such as Americans for Tax Reform, led by activist Grover Norquist. Starting in 1986, Norquist has challenged candidates for office to sign his “taxpayer protection pledge” not to raise taxes. The great majority of Republicans have signed.
Reagan Pared Back Progressivity
Reagan was able to reverse what had been a decades-long commitment to at least the look of progressivity. He could do it in part because his 1980 election coattails enabled his party to capture control of the Senate for the first time in a quarter century. Moreover, while Democrats still had a House majority, their ranks included scores of members from Southern and Midwestern districts that had also voted for Reagan.
When the budget resolution passed in that summer of 1981, 63 House Democrats joined all 190 Republicans in backing it. And when the tax package came to its critical votes in July, dozens of Democrats sided with Reagan and the Republicans rather than their own leadership.
In 1982, Democrats added to their majority in the House and negotiated some revenue increases with the Senate and the White House. And in Reagan’s second term, momentum built quickly for a tax overhaul that would combine still lower marginal rates with new business taxes and a paring back of tax preferences and other “loopholes.” The new overhaul’s main appeal to Democrats was that it exempted far more middle- and lower-income earners from the income tax altogether.
Career anti-tax advocate Grover Norquist, here in 2018, called the Trump administration’s 2017 tax cut “Reaganite” the ultimate compliment from the founder of Americans for Tax Reform.hide caption
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Gop Real Estate Owners Make Out Big
Besides the laws benefits to real estate pass-throughs, real estate in general was hugely favored by the tax law, allowing property exchanges to avoid taxation, the deduction of new capital expenses in just one year versus longer depreciation schedules, and an exemption from limits on interest deductions.;
If you are a real estate developer, you never pay tax, said Ed Kleinbard, a former head of Congresss Joint Committee on Taxation.;
Members of Congress own a lot of real estate. Public Integritys review of financial disclosures found that 29 of the 47 GOP members of the committees responsible for the tax bill hold interests in real estate, including small rental businesses, LLCs, and massive real estate investment trusts , which pay dividends to investors. The tax bill allows REIT investors to deduct 20 percent from their dividends for tax purposes.;
Who We Are
The Center for Public Integrity is an independent, investigative newsroom that exposes betrayals of the public trust by powerful interests.
Its Not Easy Being Green
Democratic socialism is not a Marxist fever dream; its a call for help. Its less socialism than humanitarian aid for a people in crisis. Millions of Americans are in dead-end jobs, slipping behind on bills, deep in debt and scared of climate change.
Something is wrong with capitalism, Martin Luther King Jr. told his staff in 1966. There must be better distribution of wealth and maybe America must move toward a democratic socialism. Saying the economic system causes pain means moving beyond the conservative image of the poor as flawed, personally or culturally, or the liberal image of them as unlucky victims of a more or less functioning meritocracy. To honor our human potential, capitalism must be dismantled, its pieces taken apart and recombined into a new world.
Climate change is one of the biggest existential threats to our way of life, Rep. Ocasio-Cortez said at the rollout of the Green New Deal. To combat that threat, we need to be as ambitious and innovative as possible. In its 14 pages, the plan envisions a World War II-scale mobilization of millions of workers. They will repair roads and bridges, build smart grids, upgrade industry to be zero carbon, build green public transit, remove carbon from the air, clean up waste sites, and clean up the poisoned land and waterways. When they come home, those workers can rest in new, green housing, and if sick or injured, they can go see a doctor, using a Medicare for All card.
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Most Welfare Recipients Are Makers Not Takers
The first myth, that people who receive public benefits are takers rather than makers, is flatly untrue for the vast majority of working-age recipients.
Consider Supplemental Nutrition Assistance Program benefits, formerly known as food stamps, which currently serve about 42 million Americans. At least one adult in more than half of SNAP-recipient households are working. And the average SNAP subsidy is $125 per month, or $1.40 per meal hardly enough to justify quitting a job.
As for Medicaid, nearly 80 percent of adults receiving Medicaid live in families where someone works, and more than half are working themselves.
In early December, House Speaker Paul Ryan said, We have a welfare system thats trapping people in poverty and effectively paying people not to work.
Not true. Welfare officially called Temporary Assistance to Needy Families has required work as a condition of eligibility since then-President Bill Clinton signed welfare reform into law in 1996. And the earned income tax credit, a tax credit for low- and moderate-income workers, by definition, supports only people who work.
Workers apply for public benefits because they need assistance to make ends meet. American workers are among the most productive in the world, but over the last 40 years the bottom half of income earners have seen no income growth. As a result, since 1973, worker productivity has grown almost six times faster than wages.
Religion And The Belief In God Is Vital To A Strong Nation
Republicans are generally accepting only of the Judeo-Christian belief system. For most Republicans, religion is absolutely vital in their political beliefs and the two cannot be separated. Therefore, separation of church and state is not that important to them. In fact, they believe that much of what is wrong has been caused by too much secularism.
Those are the four basic Republican tenets: small government, local control, the power of free markets, and Christian authority. Below are other things they believe that derive from those four ideas.
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Orrin Hatch Tom Coburn And Richard Burr On Health Care
More recently, senators Orrin Hatch of Utah, Tom Coburn of Oklahoma, and Richard Burr of North Carolina have headed up the Republican fight on health care. Their proposal was named the Patient Choice, Affordability, Responsibility and Empowerment Act, and is based upon the principle of providing more flexibility and purchasing power to the individual. It shares some important similarities with the Affordable Care Act, such as the requirement to allow dependent coverage through the age of 26, and the inability of insurance companies to provide lifetime limits. When the three senators released their proposal, Burr stated The American people have found out what is in ObamaCare broken promises in the form of increased health care costs, costly mandates and government bureaucracy. We can lower costs and expand access to quality coverage and care by empowering individuals and their families to make their own health care decisions, rather than empowering the government to make those decisions for them.;The group stated that their proposal is designed to be roughly budget neutral over the first 10 years, leaving the financial burden on the American people at nothing. Coburn commented that they created this proposal because Its critical we chart another path forward. Our health care system wasnt working well before ObamaCare and it is worse after ObamaCare.
What The Needy Deserve
The second myth is that low-income Americans do not deserve a helping hand.
This idea derives from our belief that the U.S. is a meritocracy where the most deserving rise to the top. Yet where a person ends up on the income ladder is tied to where they started out.
Indeed, America is not nearly as socially mobile as we like to think. Forty percent of Americans born into the bottom-income quintile the poorest 20 percent will stay there. And the same stickiness exists in the top quintile.
As for people born into the middle class, only 20 percent will ascend to the top quintile in their lifetimes.
The third myth is that government assistance is a waste of money and doesnt accomplish its goals.
In fact, poverty rates would double without the safety net, to say nothing of human suffering. Last year, the safety net lifted 38 million people, including 8 million children, out of poverty.
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An Exhaustive Lobbying Campaign
Almost immediately after Mr. Trump signed the bill, companies and their lobbyists including G.E.s Mr. Brown began a full-court pressure campaign to try to shield themselves from the BEAT and GILTI.
The Treasury Department had to figure out how to carry out the hastily written law, which lacked crucial details.
Chip Harter was the Treasury official in charge of writing the rules for the BEAT and GILTI. He had spent decades at PwC and the law firm Baker McKenzie, counseling companies on the same sorts of tax-avoidance arrangements that the new law was supposed to discourage.
Starting in January 2018, he and his colleagues found themselves in nonstop meetings roughly 10 a week at times with lobbyists for companies and industry groups.
The Organization for International Investment a powerful trade group for foreign multinationals like the Swiss food company Nestlé and the Dutch chemical maker LyondellBasell objected to a Treasury proposal that would have prevented companies from using a complex currency-accounting maneuver to avoid the BEAT.
The groups lobbyists were from PwC and Baker McKenzie, Mr. Harters former firms, according to public lobbying disclosures. One of them, Pam Olson, was the top Treasury tax official in the George W. Bush administration.
This month, the Treasury issued the final version of some of the BEAT regulations. The Organization for International Investment got what it wanted.
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How Democrats And Republicans Differ On Matters Of Wealth And Equality
A protester wears a T-shirt in support of Bernie Sanders, an independent from Vermont who is part of … a group of Democrats looking to beat Trump in 2020. Photographer: John Taggart/Bloomberg
If youre a rich Democrat, you wake up each day with self-loathing, wondering how you can make the world more egalitarian. Please tax me more, you say to your elected officials. Until then, the next thing you do is call your financial advisor to inquire about tax shelters.
If youre a poor Republican, however, you have more in common with the Democratic Party than the traditional Wall Street, big business base of the Republican Party, according to a survey by the Voter Study Group, a two-year-old consortium made up of academics and think tank scholars from across the political spectrum. That means the mostly conservative American Enterprise Institute and Cato were also on board with professors from Stanford and Georgetown universities when conducting this study, released this month.
The fact that lower-income Republicans, largely known as the basket of deplorables, support more social spending and taxing the rich was a key takeaway from this years report, says Lee Drutman, senior fellow on the political reform program at New America, a Washington D.C.-based think tank.
Across party lines, only 37% of respondents said they supported government getting active in reducing differences in income, close to the 39% who opposed it outright. Some 24% had no opinion on the subject.
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Us House Democrats Seek To Roll Back Trump Tax Cuts For Wealthy Corporations
WASHINGTON, Sept 13 – Leading Democrats in the U.S. House of Representatives on Monday proposed a substantial roll-back of former President Donald Trump’s tax cuts, including raising the top tax rate on corporations to 26.5% from the current 21%.
Democrats on the powerful House Ways and Means Committee said they will debate legislation this week that would achieve the changes as part of their broader, $3.5 trillion domestic investment plan.
In an attempt to finance the new spending, the Democratic-led committee will debate a proposal to raise $2.9 trillion in revenue over 10 years, according to a document circulated among members of the panel.
Besides increasing corporate taxes, wealthy individuals would see a jump in their income taxes as well as higher capital gains and estate taxes.
Even if the legislation as proposed passes Congress and is signed by Democratic President Joe Biden, corporate taxes would still be lower than they were before the enactment of the tax cuts pushed through by Republicans in 2017. But the top individual income tax rate would revert to its pre-2017 level.
The tax-writing Ways and Means Committee has scheduled work sessions for Tuesday and Wednesday to debate tax policy and other matters under its jurisdiction to be included in the $3.5 trillion “reconciliation” bill, which would require a simple majority to be passed in the Senate.
REPUBLICANS OPPOSED
Republican Senators Push Social Security Medicare And Medicaid Cuts After Supporting Ineffective Tax Cuts
Republicans Target Social Security, Medicare and Medicaid
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The economy is recovering from the depths of the pandemic in large part due to the massive relief packages that Congress passed in 2020 and 2021. Just in time for this recovery, Senate Republicans are pushing for cuts to vital programs. According to news reports, five GOP senators are proposing a commission that would come up with proposals to balance the federal budget within a decade. Given that four of the five sponsors of this idea have signed on to the tax pledge to never, ever under any circumstances raise taxes, they are looking for programs to cut. They consequently take aim mainly at cuts to Social Security, Medicare and Medicaid.
These targeted programs are already and will continue to prove crucial to the financial and physical health of millions of Americans that have suffered from the pandemic. Many workers, especially older ones, have lost their jobs permanently and will move into early retirement with permanently lower benefits and little or no savings outside of those benefits. Millions of Americans, again particularly among older ones, experience long-term consequences from COVID-19, the disease caused by the novel virus. Those hardest hit by pandemic will need strong, expanded retirement and health benefits, not cuts to an already basic system.
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