Lieberman Proposes Raising Taxes on Rich

I recall Bradley making speeches in the Senate outlining the logic behind the lower tax rates and the simplification of the Tax Code. While the main credit for the reduction goes to Ronald Reagan, Bradley and some other Democrats did sign on to it and seemd very sincere in their support. Many others, though, were not happy and waiting for the day when rates would be raised. Nowadays, there aren't any more Democrats, just 'Rats (overside of Zell Miller, who is retiring).

The only problem with lowering rates further and moving towards a flat tax is that tax exemptions would have to go. I can't see the mortgage deduction ever going away, no matter how it is explained to the voters. Nor can I see Congress giving up their current power to favor interest groups with tax favors. It's too bad; the effort spent on tax preparation & enforcement, plus the inefficiency tax-driven decisions cost our economy are pure deadweight and a total waste.

The plans that seemed to have some support either eliminated the mortgage deduction or had a slightly higher rate, and kept it. That was the only deduction retained for individuals. There was good momentum for the idea, but, as I mentioned, Papa Bush killed it, and that was a big factor in his loss. He took the momentum away from the conservative movement, which was winning the argument, and gave us wishy-washy Republicanism, which the country didn't distinguish from Clinton's New Democrat campaign. That gave us 8 years of social radicals in charge of the store, and after those 8 years, people were accustomed to some crazy things, homosexual rights, international governance, radical feminism, abortion on demand, etc. Bush didn't intend this result, but he caused it by trying to reverse course on Reagan's legacy.

Bush II is no Reagan, not close. It's a testament to the damage wrought by Clinton that he is considered conservative, that formerly good people like Sandra Day O'Connor have been corrupted by the '90s, and that a return to 28 percent tax rates seems radical.

more Details....

October 14, 2003
Citing Fairness, Lieberman Proposes Tax-Rate Changes
By EDWARD WYATT

ANCHESTER, N.H., Oct. 13 — Senator Joseph I. Lieberman, the Connecticut Democrat seeking the presidential nomination, proposed an overhaul of the federal tax code on Monday that would lower rates for middle-class families while raising rates, sometimes substantially, for wealthier Americans.

Speaking to about 250 supporters and onlookers at a rally by the Merrimack River here, Mr. Lieberman said his plan would "restore integrity and fairness" to the tax code by shifting more of the burden to wealthy individuals and companies.

The plan calls for lower income tax rates for individuals earning less than about $70,000 a year and families earning less than about $115,000 a year. In addition, Mr. Lieberman's plan would restore the tax on dividends and re-establish certain estate taxes, negating two changes central to the Bush administration's economic plan.

"When George Bush tries to say, `You Democrats are all just raising taxes,' we're going to be able to say, `No way,' " Mr. Lieberman said. "We're going to make taxes fairer for all. We are going to fix the mess George Bush has made of our tax system and federal budget."

In addition to raising rates for higher-income Americans, the Lieberman plan would impose a 5 percent tax surcharge on individuals and families with incomes of more than $250,000 a year. The plan would also close some loopholes in the corporate tax code, including the use of offshore tax havens by American companies.

Kim Pizolato, a teacher from Nashua, N.H., who attended the Lieberman rally in Manchester, said she thought the senator wanted to lower taxes but doubted whether he could. "I don't know how he can cut taxes but provide all the services he wants to provide," Ms. Pizolato said.

But Mr. Lieberman said that the new measures would together bring in an additional $900 million in revenues over 10 years, and that the tax code restructuring would simply shift the burden to higher-income families.

In addition to his tax proposal, Mr. Lieberman released a book of campaign proposals on Monday, offering what he calls "a fresh start" on issues including foreign policy, domestic security and energy consumption. Later this week, he plans to propose a commission to study "corporate welfare," much like one suggested by Senator John McCain, Republican of Arizona, and modeled on the commission that studied alternatives to closing military bases.

The proposals came as part of a five-day tour by the Lieberman campaign of early primary states, including Oklahoma, South Carolina, Florida and Michigan. The tour, focusing on the theme "Leading With Integrity," is an effort to put distance between Mr. Lieberman and his Democratic rivals and to lift him from a pack of second-tier candidates.

The campaign has begun to make Mr. Lieberman, or at least his reputation for being "the conscience of the Senate," as some supporters call him, as much the issue as his ideas for the economy and rebuilding Iraq.

In the last two weeks, Mr. Lieberman has attacked President Bush for what he says are the president's failures to keep promises made during the 2000 campaign and, after taking office, for giving favors to special interests like energy companies.

As president, Mr. Lieberman said, "I will do everything I can to make sure that there will never be distrust in my motives."

He added, "My only interest will be the nation's interest."

Other Democratic candidates have proposed tax changes. Howard Dean, the former governor of Vermont, and Representative Richard A. Gephardt of Missouri have called for repealing all of the Bush administration's cuts.

Senator John Kerry of Massachusetts and Senator John Edwards of North Carolina, as well as Mr. Lieberman, have said they would repeal the cuts for the wealthiest Americans but retain the benefits for the middle class.

The plan announced on Monday by Mr. Lieberman went further. He would raise the top tax bracket to 39.6 percent from 33 percent for individuals with adjusted gross incomes of more than $143,500. A family with adjusted gross income of more than $150,000 could see its rate rise to 39.6 percent from 28 percent.

But many others would see their taxes fall, Mr. Lieberman said. The tax rate for a married couple earning $50,000 would fall to 12.5 percent from 15 percent currently, saving the family up to $1,000. Couples earning $75,000 could see their taxes decline by $1,500, he said, and couples earning $100,000 could expect to save up to $2,000.

When was the last person elected to anything on th promise of raising taxes?? Yes, many politicans have raised taxes, but who ever promises to do so before they are elected? I am amazed at what gephart has been saying, "my proudest vote was for the '93 clinton tax hikes." And what was the lesson of 94? clinton," i agree, i raised taxes too much."

One of the things, that people tend to forget, and this angers me alot, is that Clinton did promise to raise taxes on the "rich" and he did, but his campaign also promised to slash taxes on the middle class, which he didn't. In essence, these guys are studying the Clinton play book for his first election, and stealing his material hook line and sinker. Clinton did blame congress for his failure to put together a "middle class tax cut", but he always conveniently leaves out, that it was a democratic congress that didn't let him do it, and he didn't even try anyway.

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