Bush to annonce $600 Bn Tax Cut

[MRT144]

that would actually be pretty cool, getting a tax rebate for investing money...

[Sava]

I don't agree with the assertion that the dividend tax is double taxation. When a company makes money, its taxed... when it pays its employees salary, its taxed. Likewise with dividends. Dividends are income, income is taxed. WTF is so hard to see about this. Take away the dividend tax and you give tax free income to rich people and CEO's already making tons of money.

I think they should start a tax for buying stock. I mean, I go to McDonalds, and I pay a tax buying a damn cheeseburger, yet some corporate blowhole can buy 6 million in stock and not pay a damn cent in tax?

I read in Newsweek that the National Debt is costing us a billion dollars a week in interest, yet Bush is cutting 600 billion, more than half of which will go to 1% richest, out of a budget that is already in severe deficit?

Wake me up and tell me that this monkey isn't really our president!

[Sava]

Originally posted by chegitz guevara
Man, this country is really gonna be a shambles once the Republicans are finally thrown out.

After almost a decade of Reagan, this country never learns. It won't happen my friend.

Chegitz... like your sig says, "Corporations plus government equals fascism"... Bring democracy to business... its the only way to bring about progress and improve government for all people.

[Darius871]

Originally posted by orange

NEW YORK (Reuters) - Stocks surged on Monday, bolstered by hopes the Bush administration's $600 billion economic stimulus plan can jump-start U.S. growth and help cure the market after a 3-year hangover.

Yeah, right!

What is wrong with that statement?

[Adam Smith]

HERE is the AFL-CIO's proposal. The key points are

• One-time tax rebate to people who pay payroll tax. I have no real problem with this. It is similar to several other proposals targetted to low and middle income tax payers.
• Immediate financial help to states. Many of the state financial problems are due to huge increases in health care costs. It would be much better to start reforming health care than to throw more money at the problem.
• Invest in schools, transportation, water systems, and our industrial base. This looks like pork for union workers. Some schools could no doubt use repair. We already spend $100 bil per year on highway construction and maintenance. That's plenty enough. Water system upgrades are primarily in anticipation of tighter environmental standards. Is this the best use of our money? Investment in the industrial base is a private sector decision.
• Raising the minimum wage. This is poor public policy. Unions often look for a wage that is some percentage above the minimum wage. So raising the minimum wage helps raise union wages. But economic studies show that every 10 percent increase in the minimum wage (after adjusting for inflation) casues a three percent increase in unemployment among workers affected by the wage. The most recent increases in the minimum wage are probably responsible for about one half a percentage point in the current unemployment rate. Increasing the earned income tax credit would be a far better policy for increasing the incomes of low-wage workers.

[DanS]

"When a company makes money, its taxed... when it pays its employees salary, its taxed."

That's not the way it works. Employee salary is an expense to the company and therefore the company pays no income taxes on it.

[Sava]

I agree with those top 3 points Adam. I'm against raising the minimum wage (and considering my politics, I know that sounds weird). But I'd rather see socialized medicine and more money going to education than an increase in minimum wage. Although I'd like to see the average worker receive more money, this is the wrong way to go about doing things. The cost to businesses would rise dramatically and it would force businesses to pass the cost on to consumers, or it would increase the likelihood of more scandalous accounting procedures to increase profits. Nothing good could come with an increase in minimum wage (beyond following inflation) or the implementation of a standard living wage (which I'm against also).

According to a study in Newsweek, health care is the number one expense (beyond living expenses) among middle-income and working class people. Socialized medicine is the biggest need in this country. I'm not saying that the government should simply take the reigns from the health care industry. But I would like to see some sort of program where either the government or non-profit organizations handle the health care system in America. That would help the economy much more than any Bush pork-barrell tax giveaway to the rich.

[Sava]

Originally posted by DanS
"When a company makes money, its taxed... when it pays its employees salary, its taxed."

That's not the way it works. Employee salary is an expense to the company and therefore the company pays no income taxes on it.

Than companies should not pay income taxes on dividends... but individuals should still pay income taxes on dividends. It's my understanding that the Bush proposal eliminates any tax on dividends, period. That's wrong. Dividends are income, they need to be taxed.

[DanS]

"It's my understanding that the Bush proposal eliminates any tax on dividends, period."

Where did you get that understanding? A company will still pay income taxes on dividends because those dividends are distributed from profit.

[Sava]

Well, if you are right, and income taxes are still paid on dividends, then I agree with abolishing the tax. But I still suspect that Bush wants a complete abolishment of any tax on dividends.

[Sava]

It is hard to feel sorry for companies, many of whom change their address to Bermuda to escape taxes in the first place.

[Ned]

Sava, Reading your posts, I think you have a fundamental lack of knowledge of how corporations work and how they are taxed.

[DinoDoc]

Originally posted by Ned
Sava, Reading your posts, I think you have a fundamental lack of knowledge of how corporations work and how they are taxed.

Duh! I'm suprised even Dan takes him seriously.

[DanS]

"I'm suprised even Dan takes him seriously."

Socrates was a great man.

[DinoDoc]

Oh.... Good point.