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November 18, 2004
The Bush tax plan
Well it seems that Bush isn't going to go for a flat tax or a sales tax after all. Instead, he's going to cut capital gains taxes again, eliminate the alternative minimum tax, and otherwise shield income for wealthy people. How can he pay for all this without driving the deficit even higher? He plans to increase taxes on the middle class and working poor, by eliminating your tax deduction for state and local taxes, and eliminating the tax deductions businesses can take for providing health care.
Not only does this stick it to working people in favor of the wealthy, one of Bush's favorite things to do, but it disproportionately hits blue states — the ones who voted Democratic — because that's where most local and state taxes are paid. It's a two-fer, nicely done.
He'll also manage to cost a bunch of people their health insurance, since many businesses can't afford health insurance premiums if they can't deduct them. But that will only apply to people who can't afford to pay for their own insurance through tax-free health savings accounts. And those people aren't his base anyway. They are well on their way to dismantling every social protection this country has.
Posted by jnfr at November 18, 2004 01:27 PM