Wholesale tax reform is needed
Del. Lacey Putney, who sides with the Republicans, wants to raise the state sales tax. That must send Gov. Bob McDonnell, his Republican colleagues and the tea partiers into apoplexy.
While I give Putney high marks for his willingness to consider increasing taxes, he’s supporting the wrong tax. Sales taxes are regressive and hit the poor and middle class much harder than the rich. The real problem with our economy is not taxes, but insufficient demand and increasing the sales tax only decreases that further.
Instead Putney could raise taxes and help demand if he would target the Virginia state income tax. After $17,000 the rate is flat for all income levels. That is regressive and unconscionable. Change the rate structure.
Virginia has the seventh-highest per capita income in the United States, so we could well afford a more progressive rate. I would gladly pay more to make our tax structure more equitable. No, I won’t do it voluntarily because the “tax shirkers” would just escape their fair share.
Speaking of fair share, consider “vulture capitalists” like Mitt Romney who benefit from the George W. Bush tax cut from 25 percent to 15 percent for capital gains and carried interest. With this benefit, Romney made $21 million last year without doing a lick of work and legally paid 15 percent in taxes. This must really sound fair to the poor and middle class, many of whom pay at a higher rate. While it’s true, some don’t make enough to pay federal income taxes, they do pay sales, FICA, property and other taxes that Republicans love to forget.
Warren Buffett used capitalism to make lots of money, but his investors made tons more. He says Washington needs to stop coddling the super rich and tax them accordingly, including him. Further he says it’s baloney that corporate tax rates are too high and companies should not be allowed to repatriate profits tax free. Isn’t it refreshing to see someone so successful not driven by the greed of capitalism nor ostentatious in his living habits. He is giving away most of his money. He also wants to ban private schools so the rich would be forced to invest in the public system — a wise old man with values.
The Republican value choice is “corporate raider” Romney or the thrice-married “family values” Newt Gingrich. If either is the choice of free market Republicans or evangelical fundamentalists, what does it say about their values?
DAVID MCLOUGHLIN
Forest
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