Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The unsoaked rich
Waterbury Republican-American ^ | July 16, 2004 | Editorial

Posted on 07/16/2004 7:48:10 PM PDT by Graybeard58

When it comes to paying taxes, the Democratic mantra is always "soak the rich." Need money for pork? Soak the rich. Running a big deficit? Soak the rich. Just feel like soaking the rich? Soak the rich.

Over the years, the philosophy of balancing government budgets on the backs of achievers has been chiseled into local, state and federal tax laws, and is manifest in the many ways Democrats scheme to separate "the rich" from their money.

We will concede they're right about one thing: the rich don't pay their "fair share." In Connecticut, the top 10 percent of wage-earners pay half of all income taxes while the bottom third pay next to nothing. Nationally, the top 10 percent pays 65 percent of all income taxes while a third of all people who filed tax returns -- 40 million in all -- pay a combined $0. Surely, "the rich" should pay more than "the poor," but everyone should be required to pay something, if only to keep up their interest in government fiscal practices.

What bothers us is a lot of these Democrats are themselves well-to-do, but since they are among the chiselers who wrote the tax code, they know how to get around paying their "fair share."

Take Mr. Two Americas, Sen. John Edwards.

The vice-presidential candidate-in-waiting made a fortune as a trial lawyer, but when the time came for this rich man to pay his fair share, he exploited a tax dodge, leaving it to the Other America -- "working families" -- to pick up his slack.

As explained in the July 13 Wall Street Journal, Sen. Edwards set up a "subchapter S" corporation in 1995 and designated himself as the sole shareholder. The corporation paid him a salary of $360,000 a year and converted the rest of his $26.9 million in earnings from 1995-99 into dividends. Since dividends aren't subject to the 2.9 percent Medicare tax, Sen. Edwards cheated the government out of $591,000.

Oddly, he was forced into this tax dodge by congressional Democrats, who in 1993 lifted income limits on Medicare taxes ostensibly to soak the rich. What he did was legal in a Bill Clinton sort of way, but the Internal Revenue Service "has successfully litigated cases against individuals, particularly sole shareholders of personal service S corporations, reclassifying such deemed distributions as wages subject to Social Security taxes," according to Attorney CPA magazine.

Sen. Edwards is typical of the Democratic demagogues who say they want the rich to pay more. In reality, these lawyer-lawmakers want to tax the entrepreneurs, achievers and job-creators at exorbitant marginal rates while driving their own incomes through enormous, obscure loopholes put in the tax code to protect their own paychecks.

The Democrats have been wildly successful in this endeavor, as the statistics above demonstrate. But the result of this subterfuge also means the Other America is forced to help pick up the slack left by rich Democratic politicians.

And now these same feckless folks want Americans to give them the keys to Congress and the White House in November so they can roll back the Bush tax cuts, thereby dramatically increasing taxes on the middle class. It would be better if Americans recognized these charlatans for who they are and elected a Congress and president dedicated to tax equity.


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: axixofevil; taxreform
Navigation: use the links below to view more comments.
first 1-2021-22 next last
When the dims say "soak the rich" they mean me and you brother- not themselves.
1 posted on 07/16/2004 7:48:10 PM PDT by Graybeard58
[ Post Reply | Private Reply | View Replies]

To: Graybeard58
When the dims say "soak the rich" they mean me and you brother- not themselves.

For the little people, "rich" by DemocRat definition, starts at about $20,000/year, or somewhere about the poverty line.

2 posted on 07/16/2004 7:52:44 PM PDT by El Gato (Federal Judges can twist the Constitution into anything.. Or so they think.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graybeard58
The Party of the People. Yeah, right.

3 posted on 07/16/2004 7:55:17 PM PDT by Mike Bates (Irish Alzheimer's victim: I only remember the grudges.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graybeard58; *Taxreform; Taxman; Principled; Bigun; EternalVigilance; kevkrom; n-tres-ted; ...

everyone should be required to pay something, if only to keep up their interest in government fiscal practices.

Thomas Hobbes, Leviathan it is fairer to tax people on what they extract from the economy, as roughly measured by their consumption, than to tax them on what they produce for the economy, as roughly measured by their income.

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

4 posted on 07/16/2004 7:56:56 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graybeard58

Hey, I got an idea: Let's shitcan the whole system and implement the FairTax, a 23% nationa lretail sales tax.


5 posted on 07/16/2004 8:02:21 PM PDT by Remember_Salamis (Freedom is Not Free)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Remember_Salamis

Now that's an idea!


6 posted on 07/16/2004 8:10:14 PM PDT by RockinRight (Liberalism IS the status quo)
[ Post Reply | Private Reply | To 5 | View Replies]

To: El Gato

Tell me about it. I end up taking home about 63% of what I make. Its nuts.


7 posted on 07/16/2004 8:11:18 PM PDT by RockinRight (Liberalism IS the status quo)
[ Post Reply | Private Reply | To 2 | View Replies]

To: El Gato
"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world's great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage."

Alexander Tyler (historian) on the fall of the Athenian Republic.

8 posted on 07/16/2004 8:21:14 PM PDT by Aetius
[ Post Reply | Private Reply | To 2 | View Replies]

To: RockinRight

Guess what? There's already pending legislation to make it happen, HR 25 and S 1493. Go to http://www.fairtaxvolunteer.org

to find out more.


9 posted on 07/16/2004 8:40:38 PM PDT by Remember_Salamis (Freedom is Not Free)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Graybeard58
For the Nyj-teen time... Who are the "rich?"

Dems and Pubbies alike do not understand the term.

An income statement versus a balance sheet are two different definitions of income versus wealth, or "rich."

Quite frankly, I'm fed up with this topic since so few have a clue.

If you want to nail down the balance sheet perspective, if I have 50 bucks in my savings account, that is an asset.; by third world standards, "I'm Rich."

10 posted on 07/16/2004 10:03:59 PM PDT by Cobra64 (Babes should wear Bullet Bras - www.BulletBras.net)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Graybeard58

Democrats are either lazy and hopeful a paternalistic government will care for them cradle to grave..

OR

they are wildly successful multimillionaire lawyers/politicians who want high taxes to smother the competition and prevent anyone with real-world experience from earning enough to challenge their power (it takes money to run for senate nowadays)


11 posted on 07/17/2004 1:44:21 AM PDT by Capitalism2003 (America is too great for small dreams. - Ronald Reagan, speech to Congress. January 1, 1984.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ancient_geezer

bttt


12 posted on 07/17/2004 2:55:38 AM PDT by lainde (Heads up...We're coming and we've got tongue blades!!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Cobra64
An income statement versus a balance sheet are two different definitions of income versus wealth, or "rich."

You are right. It is usually the schedule "C" filers, those that run their own businesses, like the local plumber, or the guy that owns the convenience store, that get soaked by these soak the rich schemes. Want to know why folks like these can't provide their employees the benefits that one used to be able to expect? Look know further than the tax code.

13 posted on 07/17/2004 3:11:23 AM PDT by Straight Vermonter (06/07/04 - 1000 days since 09/11/01)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Graybeard58
I think that I've finally realized why the dems are typically for "soaking the rich." Because they're not actually after the rich... They're after the high wage earners.

Is it just me, or has anyone else noticed that the "richest" dems, like Kerry want to increase taxes on high wage earners. It really doesn't effect him, since he and Teresa already have their money! He makes a few hundred thousand dollars a year, and she gets plenty from investments, but the vast majority of their accumulation of wealth is untouched by taxes! So, why wouldn't they be for tax hikes? It doesn't really affect them.

Mark

14 posted on 07/17/2004 4:28:12 AM PDT by MarkL (The meek shall inherit the earth... But usually in plots 6' x 3' x 6' deep...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RockinRight

Your not alone FRiend.


15 posted on 07/17/2004 5:51:59 AM PDT by Robert Drobot (God, family, country. All else is meaningless.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Robert Drobot
You're not alone FRiend.
16 posted on 07/17/2004 5:52:51 AM PDT by Robert Drobot (God, family, country. All else is meaningless.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Graybeard58
I thought it was against the law to operate a conservative newspaper in Connecticut.
17 posted on 07/17/2004 5:56:51 AM PDT by Lonesome in Massachussets (Ideas so stupid only intellectuals could believe them.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lonesome in Massachussets
I thought it was against the law to operate a conservative newspaper in Connecticut.

The Waterbury Republican-American is one of the most consistently conservative news papers in the country. They have great editorials and world, national news. Surprised me too the first time I read it.

18 posted on 07/17/2004 7:52:20 AM PDT by Graybeard58
[ Post Reply | Private Reply | To 17 | View Replies]

To: Robert Drobot

I don't consider myself rich, I am doing rather well, but not rich at all. However, according to the Democrats I am one of the eeeevvil Rich as I make more than 50k a year and work for a living...


19 posted on 07/17/2004 7:54:10 AM PDT by RockinRight (Liberalism IS the status quo)
[ Post Reply | Private Reply | To 15 | View Replies]

To: RockinRight
I am one of the eeeevvil Rich as I make more than 50k a year and work for a living..

My wife and I are in the same boat, though I am retired she still works and together our income puts us in the bracket that democrats are fond of calling "rich"

Our kids are grown so no deductions or credits for that. Our house is paid for so no interest deductions.

The bottom third in income pay no fed taxes at all, yet they complain about how GWB is not giving them any of the tax breaks.

It's the wage earners and other productive members of society who pay and pay and pay.

John Kerry and his ilk want their hands even deeper in my pockets. It makes me sick to hear him talk. When he comes on the news anymore I change the channel immediately.

20 posted on 07/17/2004 8:21:19 AM PDT by Graybeard58
[ Post Reply | Private Reply | To 19 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-22 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson