Posted on 01/07/2007 5:49:14 PM PST by Uncledave
By John Heilprin ASSOCIATED PRESS 9:20 a.m. January 7, 2007
WASHINGTON – Democrats are not ruling out raising taxes for the wealthiest people to help pay for tax cuts for middle-income families, House Speaker Nancy Pelosi said. She spoke of pursuing an estimated $300 billion that people owe in back taxes, eliminating deficit spending and reducing wasteful federal spending.
“As we review what we get from ... collecting our taxes a reducing waste, fraud and abuse, investing in education and in initiatives which will bring money into the treasury, it may be that tax cuts for those making over a certain amount of money, $500,000 a year, might be more important to the American people than ignoring the educational and health needs of America's children,” Pelosi, D-Calif., said in an interview aired Sunday. A budget rule, known as the pay-as-you-go rule, that was approved by the Democratic-run House on Friday requires that tax cuts have corresponding cuts in government spending or tax increases elsewhere to pay for them.
“What we're saying is Democrats propose tax cuts for middle-income families. And we want to have 'pay-go,' no new deficit spending. We're not going to start with repealing tax cuts, but they certainly are not off the table for people making over half a million dollars a year,” Pelosi said.
The Senate's top Republican said most GOP senators oppose this budget rule because “it almost guarantees that the majority, if it enacts it, will try to raise taxes.”
“The last thing we need to do is to be raising taxes in this country, and 'pay-go' is the first step toward raising taxes,” said Senate Minority Leader Mitch McConnell, R-Ky. “I think there will be very few, if any, Republicans who will support raising taxes.
Last week, the president challenged Democrats to join him in balancing the budget within five years and urged them to cut thousands of pet projects from future spending bills.
“If the president's willing to join with us to fight waste, fraud, and abuse, collecting the taxes, closing the loopholes, we can start there,” Pelosi said. “What we'd like to do is come to the table as I say, put all our priorities on the table.”
Bush's spending decisions also came under fire from the new chairman of the House Appropriations Committee, Rep. David Obey, D-Wis.
“How can you ever expect to get to a balanced budget if you're spending $100 billion a year on Iraq borrowing the money to do it, if you're giving $50 billion a year in tax cuts to people who make over a million bucks a year and paying for that with borrowed money?” Obey said.
Elsewhere on the legislative agenda, the chairman of the House Oversight and Government Reform Committee is getting ready to investigate suspected government fraud, particularly in federal contracts in Iraq and the Gulf Coast after Hurricane Katrina struck. But Rep. Henry Waxman, D-Calif., is not preparing to hand out subpoenas at first.
“I don't think you issue a subpoena first. You negotiate, and you try to get the information you need,” said Rep. Henry Waxman, D-Calif.
Democratic Rep. Charles Rangel of New York, the new chairman of the tax-writing House Ways and Means Committee, is seeking GOP cooperation in making inroads on bloated tax laws.
“We have to look at all of the deductions, all of the credits, and to come up with what we think we can do,” he said. “Is it going to be difficult? You bet your life.”
Pelosi appeared on CBS' “Face the Nation.” Rangel, Waxman and Obey were on “This Week” on ABC while McConnell spoke on “Fox News Sunday.”
Well golly!! Just doing what they said they would do.
Now if only the (R)'s would stick by their campaign rhetoric....
Gotta love the way they word it... "pay for tax cuts" as if it were some kind of social program.
Only a rat can get away with taking money from someone as "giving" them something.
Stand By for the Ram.
Its gonna be a helluva ride.
Demspeak: Tax Cuts for the middle class = welfare
You could take every penny of income above 500k and never make a dent in the deficit.
Oh yeah and it would destroy the economy in the process.
Okay folks. As a conservative, I support tax increases. Yes, you read that right: I want to raise your taxes. I propose the immediate repeal of all provisions of the tax code that fewer than 0.1% of tax filers use. I also want the Congress to find out how people like John F. Kerry avoid paying taxes. Is it municipal bonds? Tax 'em! Is it some elaborate tax avoidance scheme for billionaires? Make it illegal! I also want to eliminate the deduction for state and local income, sales, and property taxes primarily to avoid rewarding high-tax states. These simple steps should reduce the size of the tax code dramatically.
I have other ideas for reforming the tax code, such as the transfer of all federal payroll taxes from employers to employees (primarily to shock employees when they see the bill), the merging of income and payroll taxes into a single flat tax rate (without a lower rate on capital gains), and the consequent elimination of the Earned Income Tax Credit. We can roll the child tax credits into the personal exemption.
The tax code needs to stop punishing savings and investment, so I propose a separate standard deduction and personal exemptions for (a) wages, tips, salaries, and other traditional payroll income; (b) interest, capital gains, dividends, and other investment income; and (c) rents, royalties, farm sales, small businesses, and other entrepreneurial income. This move would enable people to earn perhaps $10,000 (the sum of standard deduction + personal exemptions)--more for large families--from savings and investments without paying federal income tax. I can't think of a more powerful yet simple incentive for ordinary Americans to save money.
Hang on boys and girls, HERE WE GO! It's the "it takes a vilage" mantra.
In common language, the claim that these are "America's children" means that irresponsible behavior (aka "single parents" who are out-of-wedlock mothers) whereas chilren in essence should be the offspring of married, nuclear family units, and the support of illegitimate, non-supportive procreaters are NOT the responsiblity of the taxpayers.
Why is it foreign to these socialists that having children is a FAMILY episode, as opposed to expecting to appropriate OTHER PEOPLE'S money for the support of irresponsible behavior, and is somehow a proper function of Gubmint?
Sarcasm?
Wonder what her definition of middle class is? sarc/
I don't know who said it first, but "we can't all go on welfare at the same time...." (SOMEONE has to PAY)
How about a spending cut to "pay for" the tax cut?
Under the Republican Majority rules a SUPER MAJORITY was needed to raise taxes.
Under the Nancy Pelosi Democrat Majority rules a SIMPLE MAJORITY is only needed to raise taxes!!!!!!!
NOBODY IN THE MSM IS COVERING THIS!!!!!
Mr. Bush: Sharpen your veto pen; you still have control of these nutjobs.
Then all you do is transfer the cost of government to the states.
Is it some elaborate tax avoidance scheme for billionaires?? Make it illegal!
Be specific
I also want to eliminate the deduction for state and local income, sales, and property taxes primarily to avoid rewarding high-tax states.
For higher income people, they are virtually eliminated with phase outs and alt min tax. For lower income people you would impose a tax on people who won't have the cash available to pay it.
These simple steps should reduce the size of the tax code dramatically.
They would do little to change anything.
I have other ideas for reforming the tax code, such as the transfer of all federal payroll taxes from employers to employees (primarily to shock employees when they see the bill),
No problem with this but it does little to change the final cost.
the merging of income and payroll taxes into a single flat tax rate (without a lower rate on capital gains),
Why? What difference does it make if there are two deductions or one?
and the consequent elimination of the Earned Income Tax Credit.
Okay, lets make it harder for people to join the work force.
We can roll the child tax credits into the personal exemption.
Sure but it would have negligible effect.
The tax code needs to stop punishing savings and investment, so I propose a separate standard deduction and personal exemptions for (a) wages, tips, salaries, and other traditional payroll income; (b) interest, capital gains, dividends, and other investment income; and (c) rents, royalties, farm sales, small businesses, and other entrepreneurial income. This move would enable people to earn perhaps $10,000 (the sum of standard deduction + personal exemptions)--more for large families--from savings and investments without paying federal income tax. I can't think of a more powerful yet simple incentive for ordinary Americans to save money.
Bush's tax rate structure already helped investments by lowering the tax rate. Why make it more complex?
"I also want the Congress to find out how people like John F. Kerry avoid paying taxes. "
Are you sure he doesn't?
Sources, please.
Easy, to pay for tax cuts you raise taxes double. One for you, two for me!
Republican economic policies have done such a great job that now we have to import poor people.
We're not going to start with repealing tax cuts" - Yes they are, they want to stop the Bush tax cuts from continuing, it is plain as day.
They dont want Bush to have the legacy of economic success based on tax cuts that Reagan had.
I think your ideas are good.
The conservative position should be:
- LOWER TAX RATES
- SIMPLIFY THE TAX SYSTEM (end the social engineering via tax code)
- REDUCE THE BURDEN ON THE ECONOMY (which is defined by tax rates as well as absolute amounts, ie, double taxation is bad, as is our tax system's focus on production, we should have more consumption-oriented tax system)
- STOP FEEDING THE BEAST (meaning keep total tax take low)
You dont really want to raise taxes, you want to eliminate loopholes and make the system better and fairer. I like your ideas. Eliminating the mortgage and state income tax deduction is a good idea, as is the separate standard deduction for savings and investment.
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