It's worth noting that the GOP's ascension to power over the last 25 years has really been tied to the party's ability to secure conservative votes from conservative parts of the country that used to be heavily Democratic. The "conservative" part hasn't changed all that much -- only the party affiliation has.
It is sobering to realize that 80% of Americans pay more in FICA taxes than income taxes.
That's not such a bad thing. The FICA tax is an income tax for all intents and purposes (most people don't realize this -- and it's better to keep them ignorant over it), and since there's a cap on income subject to FICA taxes it's actually a regressive income tax.
As the wealth disparity grows and the income tax burden falls on fewer and fewer, there will be pressure for more and expanded government programs since the costs will not be borne by a majority of the people. Tax the "rich" is an easy, painless solution to all of our problems--according to the Dems.
Even most Democrats are smart enough to realize that raising tax rates on upper-income earners won't generate enough revenue to support these stupid programs. This is why the "tax the rich" component of the party's last big tax-hike scheme (Clinton's 1993 budget) basically obscured the fact that the biggest revenue-generators in that tax bill were extremely regressive taxes borne primarily by middle-income and low-income people (the fuel tax hike, the new taxation of Social Security benefits, etc.).
Even more absurd was the way Clinton became a "fiscal conservative" by signing Republican tax cuts in 1995 that made the tax code even more regressive -- by imposing steep tax cuts on capital gains (most people in low-income brackets have no idea what a "capital gain" is) but by leaving the other 1993 tax hikes in place!
Most of the shift has taken place in the South, but that has come at a cost. Now the Reps are branded as racists and bigots by the Dems. There have been other subtle shifts. I am concerned about trends in the Southwest and Midwest, the Northwest, and VA. The Dems are making inroads. Who would have thought we would have two Dem senators from Montana and ND? The Dems now control more governorships than the Reps. We need to refocus and reevaluate our party values and standards. It was just a few years ago, people were saying that the Dems were no longer a national party, now it looks like we are headed that way. We need to select better candidates statewide. Dole and Reynolds did a lousy job compared to Emmanuel and Schumer. For example, Webb and Sestak were inspired choices. They took down Allen and Weldon.
That's not such a bad thing. The FICA tax is an income tax for all intents and purposes (most people don't realize this -- and it's better to keep them ignorant over it), and since there's a cap on income subject to FICA taxes it's actually a regressive income tax.
Not really. The cap on OASDI increases automatically every year. In 2000 the cap was $76,200. In 2007, it will be $97,200. The Dems are talking about raising it to $200,000 as part of an immediate fix. Contribution and Benefit Base. There is no cap on Medicare contributions. I agree that OASDI and Medicare are really income taxes. Most people don't realize that the taxes increase automatically each year. Unless you make over the cap, you don't feel it, which is why it is insidious. Since the increase is tied to the average wage index, more and more Americans will find themselves having more and more of their incomes taxed, which will make it less and less regressive. We are on automatic pilot with out entitlement programs. Our government is raising taxes evey year and neither Congress or we vote on it.
Most people are unaware that the so-called SS Trust Fund is filled with IOUs in the form of non-market T-Bills, i.e., they are not real assets and can only be redeemed by the USG. They would be surprised to find out that almost half of our $8.5 trillion national debt is from the SS Trust Fund and similar trust funds and is held as "intragovernmental" holdings.
SS is a pay as you go system and starting in 2017, we will be paying out more than we are taking in. We will have to borrow more "real" money to pay benefits. Now, approximately, 17 cents out of every dollar of total tax revenue collected is immediately used merely to pay the burgeoning interest on the Federal debt. This is now surpassing the costs for our entire defense establishment, and it is exceeded only by the revenues needed to fund the total Medicare and Medicaid programs.
Even more absurd was the way Clinton became a "fiscal conservative" by signing Republican tax cuts in 1995 that made the tax code even more regressive -- by imposing steep tax cuts on capital gains (most people in low-income brackets have no idea what a "capital gain" is) but by leaving the other 1993 tax hikes in place!<
About half of Americans are invested in the stock market, directly or indirectly. So, more people derive a benefit than just the "rich."
While you may view many of the taxes as regressive, we also have a graduated or progressive income tax system. The more you make, the higher your rate of taxes. The whole tax system has grown like topsy and is a product of special interest groups. Trying to make fundamental changes is almost a hopeless exercise given the lobbyists, special interest groups, and possible unintended consequences of change. I do know that the Dems "targetted" tax cuts will not work and will hurt our economy.