Further complicating an already unfair tax code - Coeur d'Alene Press: Local News

Further complicating an already unfair tax code

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Posted: Wednesday, July 25, 2012 9:06 am

Our tax code is about the most unfair, complex, expensive to comply with and anti-competitive code we could create. One would think it could not get more burdensome and illogical. Unfortunately, it can.

Hundreds of billions of dollars in tax increases, affecting every single American, will take effect if Congress and the President do not act by the end of this year. President Obama would further complicate this by proposing relief for only one-year and for only some Americans. Questions are swirling about how the tax penalties for noncompliance with President Obama’s Health Care Law will be imposed and the law’s other costs. With the nation’s record debt, the focus should be on tax reform that will generate investment, capital and jobs, not growth-killing tax increases.

Estimates indicate the average family pays nearly 40 percent of its income in local, state and federal taxes. In a family where both parents work, one is essentially working for the government. Now, Americans face potential federal tax increases, including increases in all income tax rates to as high as nearly 40 percent, increases on capital gains and dividends taxes, an Alternative Minimum Tax expansion and a death tax increase to as high as 55 percent.

President Obama’s push for temporary tax relief for some, but not all, Americans would have broad effects. Temporary tax policy compounds problems by confronting American families and businesses with continued uncertainty. Uncertainty makes it impossible to make hiring, investing and personal plans for the future. This proposal stifles job creation and affects investments and savings:

According to the Joint Committee on Taxation, the latest White House tax proposals would raise taxes on nearly 1 million small business owners.

Fifty-three percent of all small business income reported on individual tax returns will be affected by this policy.

Twenty-five percent of employees of small businesses in the country will see their company’s financial strength damaged, with the accompanying diminishment of their wages and benefits.

Economists agree that in a weak economy raising taxes is one of the worst things to do. President Obama agreed two years ago when the economy was growing at 3.1 percent. Now, he is calling for a tax increase when growth has slowed to just over 2 percent. In addition to the pending income tax increases, we face Health Care Law tax increases--including individual and employer mandate tax penalties, taxes on the manufacture of medical devices, an investment income surtax and a Medicare payroll tax increase among a laundry list of others. These taxes further the burden on Americans and add complexity to our tax law, which increases compliance costs.

Hopefully, all Americans are paying close attention to the impacts raising taxes on tens of thousands of job-creating businesses will have on our economy. The Congressional Budget Office projects that the federal gross debt totals nearly 99 percent of gross domestic product. This growing debt reduces national savings, and leads to higher interest rates, more borrowing from abroad and less domestic investment. Stifling private sector growth through tax increases will make matters worse.

Over the last few years, we have seen more spending, more debt, more taxes and more regulations from the federal government. Recent administration tax proposals do not simplify the tax code; they make it more unpredictable. I have been working for years, through my committee assignments, the president’s Fiscal Commission and the Gang of Six, to craft solutions for comprehensive tax reform and welcome continued engagement from Idahoans. We must curtail out-of-control deficit spending and institute comprehensive long-term tax and fiscal reform to get out of this financial hole.

  • Discuss

Welcome to the discussion.

6 comments:

  • JoeIdaho posted at 11:03 pm on Thu, Jul 26, 2012.

    JoeIdaho Posts: 2841

    Sorry about the count, inclined, my page showed (5) posts & one was a communists that got removed by Mods.

    Liberals=Failure.

     
  • JoeIdaho posted at 11:00 pm on Thu, Jul 26, 2012.

    JoeIdaho Posts: 2841

    And the 4 communists all chime in:
    "Let's copy Hitler; ban the rich, take what they have; National SOCIALISM is the way"

    And along the way, let's FORGET that "the rich" pay almost ALL of the taxes paid in America....

    And then....when we STILL run out of money....let's turn ALL industry into government owned industry, starting with car companies, health insurance companies.....JUST LIKE STALIN DID.

    Liberals are POISON to America.
    Boobama is an abject FAILURE, worst President America has EVER had.

     
  • inclined posted at 1:51 pm on Thu, Jul 26, 2012.

    inclined Posts: 682

    Oh, yeah. Yeah, and you all forgot to blame Phil Hart. Nothing Senator Crapo is discussing comes anywhere near your choice comments, you three.

    Q: How do you keep a Democrat busy?
    A: Write 'Please turn over' on both sides of a piece of paper.

    “Liberals seem to assume that, if you don't believe in their particular political solutions, then you don't really care about the people that they claim to want to help” Thomas Sowell

     
  • searcher posted at 8:14 am on Thu, Jul 26, 2012.

    searcher Posts: 365

    Fifty-three percent of all small business income reported on individual tax returns will be affected by this policy.

    ...and that comes from less than 2% of those classed as "small business". Many of those are billion dollar plus companies who have gamed the small business rules to qualify for small business breaks and benefits. Companies such a Koch Industries, Ferrell Gas, Price Waterhouse Coopers...: Small business for tax purposes only.

    ...and the Senator forgets to point out that EVERYBODY gets to keep the tax break on the FIRST $250,000 of taxable income (after expenses and deductions).

    I have a really hard time feeling sorry for people and companies that game the system and consider themselves better than anyone else. It's hard enough for legitimate small business to compete without being crushed by the big boys with power, influence and no sense of fair play or ethical business practices.

     
  • Ziggy posted at 1:37 pm on Wed, Jul 25, 2012.

    Ziggy Posts: 1045

    Yeah, let's keep Texas Ohlmayn from paying any tax at all. Let's keep GE tax free. Let's tax the single mom below. Let's keep the millionaire buddies tax free.
    If these tax breaks were working, why is the nation backrupt, and where are all the jobs these tax breaks are creating? Where????
    And...oh yeah, let's keep the avenue open for the Texas Ohlmayn and their billionaire buddies the ability to stuff their money in tax free havens with no accounting to anyone in the US.
    It's funny how the Texasization of the Republican party has resulted in very poor rural people singing the praises of tax breaks for millionaires and billionaires to the tune dictated to them by the Texas Ohllmayn.
    Amazing!

     
  • voxpop posted at 11:59 am on Wed, Jul 25, 2012.

    voxpop Posts: 738

    Did you notice? Not a breath about a flat tax. My guess is that nearly every pol in DC, including Crapo, is not interested because then EVERYONE would pay a minimum - something that doesn't happen now, by a long shot. And I'm not talking about the single mom of 3. I'm talking about GE. Bring in a flat tax Crapo. No more deductions for ANYTHING for anyone. No more shenanigans by multi-nationals in moving profits around off shore to cut their tax bill at home to zero. But then that single mom of 3 probably isn't a campaign contributor is she.

     
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