The flat tax — so called because it offers one flat rate for taxpayers in all income groups while taking away many or all deductions — would simplify taxes. It also would almost certainly give big tax cuts to wealthy Americans. Republicans believe that cutting taxes, especially on the wealthy, helps to spur investment, economic growth and hiring.
At the same time, most of the Republican candidates are proposing other changes that also would mean big tax cuts for high-income Americans, such as eliminating taxes on dividend income or capital gains, and eliminating the estate tax, called the death tax by Republicans.
Their push comes at the same time that Democratic President Barack Obama is pushing to raise taxes on higher-income Americans. He's proposed raising taxes on those making more than $200,000 and has endorsed a push by Senate Democrats to raise taxes on incomes above $1 million.
The debate comes as new data show that the very wealthiest Americans have greatly increased their share of U.S. income in recent decades. The richest 1 percent claimed 17 percent of American income in 2007, more than double their 8 percent share in 1979, according to a report this week from the non-partisan Congressional Budget Office. Protest over growing income inequality is also among the motive issues driving the Occupy Wall Street demonstrations around the country.
Polls show that a solid majority of Americans favor raising taxes on the wealthy. But that's anathema in the Republican Party, where tax cuts, particularly for higher incomes, are popular. Seven in 10 Americans say that policies of Republicans in Congress favor the rich, according to a New York Times poll published Wednesday.
There's little doubt the Republican presidential candidates' proposals would cut taxes on the wealthy.
Wednesday, October 26, 2011
Last Call
McClatchy's Steven Thomma notes the much larger picture with all the GOP Clown Car Kids and their nifty tax plans: every single one of them would shift the federal tax burder to the middle and lower class, cut taxes for the wealthy, and destroy revenues, necessitating more cuts in social programs when Americans need them more than ever.
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