http://www.deanforamerica.com/site/cg/index.html?type=page&pagename=policy_statement_economy_taxreform
Financed by federal deficits and by shifting the burdens to states and localities, the 2001 and 2003 tax cuts benefited the wealthiest Americans while doing little or nothing for the middle class. In fact, the Bush tax policies furthered the administration’s goal of shifting the federal tax burden from income derived from invested wealth to the shoulders of working Americans. For many Americans, increases in state and local taxes, cuts in services, and falling incomes outweighed any modest decrease in their federal tax rate. The tax cuts are part of the long- term Republican agenda to starve the federal government of the resources it needs to meet our commitments to public education, Social Security and Medicare.
The first step in reversing this agenda, balancing the budget and putting the US fiscal house in order must be the repeal of the Bush tax cuts, and returning the tax code to rates that were in effect during the prosperous years of the Clinton-Gore administration.
The distribution of the income tax burden has changed dramatically. In 1973, corporations paid 40% of federal income tax revenues. Last year, the corporate contribution was down to 16.8%. Experts estimate that corporate tax avoidance schemes are costing the US taxpayers up to $100 billion a year. Senator John McCain claims that even a modest effort to eliminate unnecessary special interest tax preferences and loopholes would raise nearly $50 billion a year in increased federal revenues.
The current tax code is overloaded with special interest favoritism and stacked against working Americans. Unfair tax subsidies, shelters and loopholes abound. Corporations use foreign tax havens solely to avoid paying US income taxes. Tax cheats escape detection and prosecution. Abusive tax shelters are commonplace.
Governor Dean will make fundamental reform of the tax system one of his first priorities. He will crack down on tax shelter promoters and their clients He will pursue actions to impose hefty fines and bar further practice before government agencies by lawyers and accountants who certify abusive tax shelters. President Bush’s own tax commissioner testified that the IRS lacked sufficient resources to collect $30 billion in known unpaid taxes. The Governor will provide the Internal Revenue Service with the budget it needs to do its job.
The Dean economic program will strive for greater tax fairness for middle class working families. Closing corporate tax loopholes will help shift some of the burden off the shoulders of individuals. Ending unfair tax preferences will raise additional revenue to reduce the deficit and help set the federal budget on the road to balance.
Financed by federal deficits and by shifting the burdens to states and localities, the 2001 and 2003 tax cuts benefited the wealthiest Americans while doing little or nothing for the middle class. In fact, the Bush tax policies furthered the administration’s goal of shifting the federal tax burden from income derived from invested wealth to the shoulders of working Americans. For many Americans, increases in state and local taxes, cuts in services, and falling incomes outweighed any modest decrease in their federal tax rate. The tax cuts are part of the long- term Republican agenda to starve the federal government of the resources it needs to meet our commitments to public education, Social Security and Medicare.
The first step in reversing this agenda, balancing the budget and putting the US fiscal house in order must be the repeal of the Bush tax cuts, and returning the tax code to rates that were in effect during the prosperous years of the Clinton-Gore administration.
The distribution of the income tax burden has changed dramatically. In 1973, corporations paid 40% of federal income tax revenues. Last year, the corporate contribution was down to 16.8%. Experts estimate that corporate tax avoidance schemes are costing the US taxpayers up to $100 billion a year. Senator John McCain claims that even a modest effort to eliminate unnecessary special interest tax preferences and loopholes would raise nearly $50 billion a year in increased federal revenues.
The current tax code is overloaded with special interest favoritism and stacked against working Americans. Unfair tax subsidies, shelters and loopholes abound. Corporations use foreign tax havens solely to avoid paying US income taxes. Tax cheats escape detection and prosecution. Abusive tax shelters are commonplace.
Governor Dean will make fundamental reform of the tax system one of his first priorities. He will crack down on tax shelter promoters and their clients He will pursue actions to impose hefty fines and bar further practice before government agencies by lawyers and accountants who certify abusive tax shelters. President Bush’s own tax commissioner testified that the IRS lacked sufficient resources to collect $30 billion in known unpaid taxes. The Governor will provide the Internal Revenue Service with the budget it needs to do its job.
The Dean economic program will strive for greater tax fairness for middle class working families. Closing corporate tax loopholes will help shift some of the burden off the shoulders of individuals. Ending unfair tax preferences will raise additional revenue to reduce the deficit and help set the federal budget on the road to balance.
