A BOSTON GLOBE EDITORIAL - Fairness in taxing

The Boston Globe ^ | December 30, 2002 | staff editorial

[Cincinatus' Wife]

THE BUSH administration is thinking of reducing or eliminating the tax on dividends, a reasonable idea were it not part of a drive to shift federal taxation away from wealthy Americans. Proponents of the idea are right that the the economy needs a boost, but that is no reason to cut taxes in ways that slight the needs of average Americans.

[Cincinatus' Wife]

Eat the Rich - By P. J. O'Rourke

[goldstategop]

BOSTON GLOBE CLASS WARFARE ALERT

[tm61]

you gotta pay taxes to get a tax break. the libs just want income redistribution. take from those who earn, give to those with their hands out.

[Mike Darancette]

.....one-year cut in the Social Security payroll tax, which
is a disproportionate burden on low-income people. At a cost of $140 billion, the Roundtable's plan would provide $620 to almost every wage earner.

---

If you cut $620 for every wage earner does that mean the employer will have $620 less payroll tax as well (matching payment)?

Will people subject to the "Self-Employment tax get to keep an extra $1,240?

[Tripleplay]

I guarrantee that the final "rebate" will only be apply to those making $50,000 or under. It will also be effective just before the 2004 election.

[johnny7]

Unless a consumption tax came with exemptions for basic items such as food and clothing, it would favor more-affluent Americans.

Whaaa... ? Wealthy people spend more money... they would pay more taxes!

This is pure communist BS! People with money throw parties and buy lots of clothes. They eat well too!

The Boston Globe is no better than The Daily Worker. BTW, P. J. O'Rourke is excellent!

[KeyWest]

Basic error in this is th assumption that only the rich own stocks. Obviously, the writer has never heard of 401ks or any other retirement funds.

[freeper12]

look all taxes are unfair IMO, but it is political suicide for the republicans to push to cut the inheritance tax (which only affects people with mult-million dollar estates) and the cap gains tax, which is mostly going to benefit the upper income tax player...especially when the gov't is already running several hundred billion dollar defecits, and states are all near bankruptcy....

Now argue all the economics all you want...republicans push this one thru and I predict we loose two of the following next election : senate majority, house majority and/or whitehouse.

Now knowing that it is completely political suicide, and will make for great campaign attacks by the democrats, and sure to be an issue that sticks with voters...I am pretty darn sure that is exactly what they will push for...read...aim...shoot yourself int he foot.

I for one would rather see the republicans majority to do some reall CUTTING of government waste while they control everything...a lot oeasier to argue for tax cuts when the gov't is running a surplus.

[The Raven]

a reasonable idea were it not part of a drive to shift federal taxation away from wealthy Americans

There they go again!!!! If the "rich" were a race, color, or creed.....this would be outrageous. The socialists of the past have an ugly record in this regard. The rich are killed in mass quantities. As Yogi said, "You can look it up" [ or was it Casey?]

[Cincinatus' Wife]

We need to inform voters they too are "the rich."

[ozone1]

To quote Anus King, Gov ME, "Your taxes aren't too high, you just don't make enough money"

[eno_]

I disagree. Other than the Commies that actually read Globe editorials, nobody on the left cares about the dividend tax cut. Karl Rove would not be so stupid as to piss upwind.

And the best reason to cut this tax is that it will focus copmanies on delivering dividends instead of inflating their gross as Enron did. Artificially growing the valuation of a company is a tax distortion. We need to restore the right incentives. This will be good for everyone.

[OXENinFLA]

http://www.freerepublic.com/focus/news/812220/posts

I think Congress needs to look in their own back yard.

This is the story last week about Over 1/2 of new congressman are Millionaires.

[freeper12]

>>This will be good for everyone.

Well, I can't argue that it would be good for shareholders and for the comapnies and possibly even for the economy...but since when does that matter? It is just so damn easy to pain this one as a "tax-cut for the rich"...

[Sparta]

"The nonprofit advocacy group Citizens for Tax Justice"

I have a correction for the Boston Daily Worker.

The socialist special interest group Citizens for Tax Justice.

This is the same divisive class warfare rhetoric the Boston Daily Worker, the NY Slimes, and Washington's quaint, little alternative newspaper, the Washington S**t are famous for. Bush needs to counteract this socialist BS with a proposal for a 10% Flat tax and plans to cut spending in government.

[machman]

Yes, major flaw in the analysis. Soooo many people have exposure to the stock market and don't even know it.

Of cousre the Globe doesn't get to the easy way around the problem that only giving a tax break to "the rich" can be fix the double taxation of dividends. The simple answer is eliminate the taxation at the corporate level. To me, it makes much more economic sense, treat the income given to owners of the company the same tax treatment that income given to debtors of a company are given. This of course would reduce the tax incentive of corporations to overly leverage their balance sheet, which, as we have seen recently, at times in not a very good thing.

[glory]

The nonprofit advocacy group Citizens for Tax Justice estimates that the top 1 percent of earners - those making more than $356,000 a year in income - pay nearly half of all dividend taxes, meaning they would get nearly half of the tax break>>

Let's say this the right way then shall we, that the bottom 99% of wage earners pay MORE than half the dividend taxes meaning they would get more than half the tax break. Liberals twisting words as usual. Sure the rich have more invested therefore pay more in dividend taxes, but it sure sounds like an awful lot of "ordinary" Americans who have saved for a nest egg will get a break as well--my family included. Next thing you know though, these goofs will want a progressive tax on dividends. If you make so much a year you get taxed on them if you make less, you don't.

[glory]

Well dividends are not taxed in retirment accounts--you get taxed at your income tax rate when you take ANY money out though and penalized if you take it out early(with some exceptions of course), but this does ignore those Americans in the middle class who are investing outside of their retirment accounts or who just hold their money earning interest in a bank. We fit the bill--we regularly send money to DRIP programs.

[glory]

ps I understand dividends and interest are different btw, but both are taxed so I threw that in there too.

[johnny7]

Let them eat cake!... I'll slap you and you'll take it!

Followed by a hearty laugh.

Beacon Hill will bleed us to death... the sheep up here are soft-minded.

God help the few who know what the stakes are.