Here is an idea of what a John Edwards Presidency would bring in the way of tax fairness to the middle class with thanks to jamess on mydd.com :
The Steps to Strengthen the Middle Class
(A) Encourage Savings
(a) Establish a new Get Ahead tax credit to match up to $500 a year in retirement savings for families earning up to $75,000.
(b) Create new Work Bonds to offer extra savings incentives for low-income workers.
(B) Reward Work
(a) Expand the Earned Income Tax Credit (EITC) to reward low-wage workers by tripling the EITC for single adults and cutting the marriage penalty.
[ some key details from pdf-2: ]
- Edwards will expand the Child and Dependent Care Tax Credit to pay up to 50 percent of childcare expenses up to $5,000 and make it partially refundable to benefit low-income working families. He will also allow stay-at-home parents to get the credit to help pay for child care for newborn infants.
- Triple the EITC for 4 Million Adults without Children: A single worker at the poverty line pays more than $800 in federal income and payroll taxes. Edwards will offer more than $1,200 to poor single workers, tripling the current EITC, and it will give 4 million low-income workers an average tax cut of $750.
- Edwards believes that we must cut the EITC marriage penalty. His proposal will cut taxes for 3 million couples by about $400 a year.
(C) Support Families
(a) More than double the Child and Dependent Care Credit to up to $2,500 per child.
(2) Reward work, not just wealth, and Repeal the Bush tax breaks for the Wealthy
The Goals:
"It's time to stop promoting the wealth of the wealthy and start making sure that everyone has the chance to move up the economic ladder."
The Steps: to Repeal the Bush tax breaks
(A) Restore Fair Taxation of Wealth
(a) Restore the investment income tax rate to 28 percent for Americans making more than $250,000 a year so that wealthy investors don't pay a lower rate on investments than many regular Americans pay on wages.
[ some key details from pdf-2: ]
To ensure that the wealthiest Americans are paying their fair share of taxes and to reduce the economic distortions from tax shelters resulting from large capital gains preferences, Edwards will raise the top tax rate on long-term capital gains to 28 percent for the most fortunate taxpayers, the same rate signed into law by President Reagan. The 28 percent rate will ensure that high-income investors will pay taxes on their investment income at a similar rate to what regular families pay on their earned income.
(b) Repeal the Bush tax cuts for households earning more than $200,000 a year.
More than half of the Bush tax cuts - $132 billion - will go to the top 1 percent of taxpayers in 2010. Edwards will repeal the Bush tax cuts for the highest-income households. He will also eliminate estate taxes for the middle class, small business owners and family farmers, while keeping these taxes on the few families with large estates above $4 million in value.
(c) Keep the tax on very largest inheritances while protecting family businesses and family farms.
(B) Simplify Taxes
(a) Simplify taxes for up to 50 million families by giving them the option of letting the IRS complete a first draft of their forms for "five-minute filing."
(A) Encourage Savings
(a) Establish a new Get Ahead tax credit to match up to $500 a year in retirement savings for families earning up to $75,000.
(b) Create new Work Bonds to offer extra savings incentives for low-income workers.
(B) Reward Work
(a) Expand the Earned Income Tax Credit (EITC) to reward low-wage workers by tripling the EITC for single adults and cutting the marriage penalty.
[ some key details from pdf-2: ]
- Edwards will expand the Child and Dependent Care Tax Credit to pay up to 50 percent of childcare expenses up to $5,000 and make it partially refundable to benefit low-income working families. He will also allow stay-at-home parents to get the credit to help pay for child care for newborn infants.
- Triple the EITC for 4 Million Adults without Children: A single worker at the poverty line pays more than $800 in federal income and payroll taxes. Edwards will offer more than $1,200 to poor single workers, tripling the current EITC, and it will give 4 million low-income workers an average tax cut of $750.
- Edwards believes that we must cut the EITC marriage penalty. His proposal will cut taxes for 3 million couples by about $400 a year.
(C) Support Families
(a) More than double the Child and Dependent Care Credit to up to $2,500 per child.
(2) Reward work, not just wealth, and Repeal the Bush tax breaks for the Wealthy
The Goals:
"It's time to stop promoting the wealth of the wealthy and start making sure that everyone has the chance to move up the economic ladder."
The Steps: to Repeal the Bush tax breaks
(A) Restore Fair Taxation of Wealth
(a) Restore the investment income tax rate to 28 percent for Americans making more than $250,000 a year so that wealthy investors don't pay a lower rate on investments than many regular Americans pay on wages.
[ some key details from pdf-2: ]
To ensure that the wealthiest Americans are paying their fair share of taxes and to reduce the economic distortions from tax shelters resulting from large capital gains preferences, Edwards will raise the top tax rate on long-term capital gains to 28 percent for the most fortunate taxpayers, the same rate signed into law by President Reagan. The 28 percent rate will ensure that high-income investors will pay taxes on their investment income at a similar rate to what regular families pay on their earned income.
(b) Repeal the Bush tax cuts for households earning more than $200,000 a year.
More than half of the Bush tax cuts - $132 billion - will go to the top 1 percent of taxpayers in 2010. Edwards will repeal the Bush tax cuts for the highest-income households. He will also eliminate estate taxes for the middle class, small business owners and family farmers, while keeping these taxes on the few families with large estates above $4 million in value.
(c) Keep the tax on very largest inheritances while protecting family businesses and family farms.
(B) Simplify Taxes
(a) Simplify taxes for up to 50 million families by giving them the option of letting the IRS complete a first draft of their forms for "five-minute filing."
A taste of what Edwards might have in store for us.
1 comment:
Should rich people pay more income tax?
Income earned 35%. Income from capital gains 15%.
Lower their income tax, since this is what they actually earn. This would be rewarding "new money". On capital gains increase the tax rate. Perhaps not to 35% but it should be higher, because all they do is sit on their asses and rake it in.
This is most fair. And no taxes on first $20k-$30k income on those earning less than $x/year. Some people are fucking starving to death. They don't make enough money and don't qualify for food stamps.
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