Dean Considers Middle-Class Tax Help

[robbedvoter]

http://www.latimes.com/news/nationworld/nation/la-na-dean8jan08,1,1877889.story?coll=la-headlines-nation

 

Dean Considers Middle-Class Tax Help

Possible policy change comes after he takes hits from his Democratic rivals for saying he would repeal all of Bush's rollbacks.
By Matea Gold
Times Staff Writer

January 8, 2004
BURLINGTON, Vt. — While Howard Dean repeatedly tells voters on the campaign trail that he would repeal all of President Bush's tax cuts to pay for programs such as expanded health insurance, he is now contemplating whether to also devise tax relief for the middle class.
The potential shift in Dean's policy comes as he has fielded criticism from some of his rivals for wanting to roll back the entire $1.7-trillion Bush tax cut package, a move opponents say would burden working people.
The airwaves in Iowa are quickly filling with commercials that knock Dean.
On Wednesday, the conservative-leaning Club for Growth organization began running an ad that calls Dean's tax position out of the mainstream, while Massachusetts Sen. John F. Kerry will begin airing a commercial today that contrasts his support for middle-class tax cuts with Dean and Missouri Rep. Dick Gephardt, who also favors repealing the entire Bush tax cut.
On Monday, retired Army Gen. Wesley K. Clark proposed a sweeping tax reform plan that would reduce income taxes for families with children earning up to $100,000 a year, and raise taxes on millionaires.
Some of Dean's economic advisors believe he should propose his own tax cuts for the middle class — both to ease the economic strain on working families and to avoid giving Bush an opening to run similar political ads.

EDITED BY ADMIN: COPYRIGHT

[underpants]

1. Genius

simply genius. Gee maybe he should have thought of this before.

[RUMMYisFROSTED]

24. He did.

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=78151#82010

[cspiguy]

28. Dean veers back toward center now that he has nomination locked

n/t

[jpgray]

2. I support removing *all* the tax cut, but it is not as politically viable

I would, however, recommend Dean say "to hell with it" and still remove all the tax cuts. It's not the same as raising taxes, it's fixing a mistake that is bankrupting our country.

[RUexperienced]

7. "I am not cutting your pay. I am only repealing last year's raise."

Can you imagine some union official falling for that line from General Motors when negociating a new contract?

No matter how you slice it or phrase it. Repealing all tax cuts is raising taxes on the middle class.

If * told the military that he was repealing the pay increase they received under President Clinton, the headlines would read "Bush Cuts Military Pay."

But somehow, the Dean supporters here would have us believe that there is no tax increase for the middle class in his plan.

[jpgray]

10. LOL! Worst analogy ever

Wages are not taxes. The tax cut buries the country in debt, and attaches a lead weight of several thousand dollars to each member of the generation unfortunate enough to have to clean up after our bacchanal.

Here's an analogy that makes sense: "I'm giving you a raise. No, your actual pay won't change, but here's a credit card--buy stuff with it!"

[mopinko]

12. perfect

[RUexperienced]

16. Sure, LOL... Laugh it up

But you are going to have to explain to working families why they are going to be charged an extra $2000 if Dean is elected.

Even the 'New Dean' doessn't buy that argument anymore.

[mopinko]

18. i say

this is your fair share. aren't you proud to be doing your duty, and not sending your bills to your children and grandchildren.

[jpgray]

19. I'd be happy to, because they would dodge the following $7,000 debt

I haven't picked a candidate as yet, but we have to recognize that short-term satisfaction can equal long term pain. We are running incredible deficits, and if a candidate refuses to cut defense spending, I don't want to lose important social programs. Therefore, I support the tax cut being repealed entirely.

[RUexperienced]

22. You realize this puts you to the left of Howard Dean

[jpgray]

23. I have no horse in this race yet. It's the right thing to do.

I don't see how giving everybody $2,000 (the average will likely be less) now and requiring $4-7,000 later is sound policy. It seems like base, short-term political bribery to me.

[cspiguy]

32. most here have to be left of most viable candidates...

just to want to be in this place

[Ramsey]

27. With the facts

I don't where you came up with the figure of $2000 tax increase for working families, but even the Bush administration, which always talks about the "average" tax cut, puts that amount at about $1200. That's the across the board average. And average can be skewed by a few people at the top getting tens or hundreds of thousands in tax cut. I'd like to see the mean, median and range to really get an idea of how much people at different income levels got.

I also don't know how we are defining "working family" here, but let's assume they are synonymous with "middle class"

http://www.ctj.org/html/gwb0602.htm
My link to the Center for Tax Justice here has lots of data, but just to focus on the pertinent, the average tax break to the lower 60% of income earners was $466, and to the top 10% was $10,203. Many of the lower 60% must be considered "middle class", right? In fact, it is only when you reach the top 5% that the average tax cut exceeds an average of $2000, and we probably wouldn't even call those people "middle class" or "working families"; they'd be considered wealthy.

In the Iowa debate, Dean stated: "Sixty percent of us got a $304 tax cut." According to the Center for Tax Justice, that sounds pretty close. CTJ states: "For the four out of five families and individuals making less than $73,000 this year, three-quarters of the tax cuts—averaging about $350 this year—are already in place."

The Bush tax cuts are inequitable and heavily weighted to the wealthier segments. For example, by 2010, when the Bush tax reductions are fully in place, an astonishing 52% of the total tax cuts will go to the richest 1%—whose average 2010 income will be $1.5 million. Many Democrats support, as Dean does, a more targeted tax cut to the middle class.

The point about increased taxation from other sources is also very valid. City, state and other local taxes like property taxes are being increased as the states budget crises persist. These may very well in some cases offset or exceed any federal reduction. CTJ concludes: "Freezing the Bush tax cuts at their 2002 levels would have little or no effect on 99 percent of the taxpayers, whose tax cuts are already mostly or completely frozen. Only the best-off one percent of the taxpayers will receive significant additional tax cuts if the rest of the Bush tax program continues to be implemented."

So, repealing the Bush tax cuts won't hurt the "working family" one bit, and certainly won't cost them $2000 a year. If the Dean campaign can explain that, there should be no cause for alarm.

[cspiguy]

31. The idea is that government services - a better community

will more than make up for the 2,000.00

[cspiguy]

30. tax cuts do not cause debt - only spending does

but we are (really) Compassionate (tm) and believe (I do) that the spending is worth it.

[cspiguy]

29. that is EXACTLY what my company did in December!!!

no joke. not funny.

[Fish-Slapping_Dance]

3. Good idea, but

this will just be used as another example of Dean's backtracking and flip-flopping.

Not good. If he's gonna take a controversial position, let him stick with it. Otherwise, the corporate whore media will . . . well, you know the rest.

[robbedvoter]

6. Gee, you think? I wonder why?

I wonder where are all these people berrating breeders the other day and saying that Clark is no different than bush because he is pandering to families?

[mouse7]

14. It could be presented as affecting different tax areas

If Dean left the planned repeal intact, but created a new tax credit, or adjusted tax credits that weren't affected by Bush, he could present it as a different tax program.

[RUexperienced]

4. Dean's as phoney as a 3 dollar bill

<<They said Dean would not alter his position on repealing the entire Bush tax cut, but maintained that the candidate has always supported additional tax reforms to help working families.>>

But for some reason, Dean has never voiced that opinion.

Even though he has had enough time to talk about Jesus, God, gays and guns. The Repukes are going to open up this guy like a soft peanut.

[mopinko]

9. he did say this

"maintained that the candidate has always supported additional tax reforms to help working families."
he said clearly in the debate that he wanted to "eventually' rework the tax code so that it was more fair. i think it is smart of him not to campaign on an issue that he knows is fraught with political quicksand. he was savaged by his "fellow democrats" for saying eventually.

[RUexperienced]

15. Dean has been saying that *'s plan did not cut taxes for the middle class

Now he says he must replace the Bush tax cut he is taking away.

[mopinko]

17. and he is exactly right

state and local taxes have gone up, up, up because the feds are shirking their responsibilities. and these taxes- sales and property taxes fall more heavily on those that can least afford to pay them.

[mopinko]

5. this whole discussion makes me want to puke

so much of wrong with politics today is this nimby, cry baby crap. by definition politics is not supposed to be about 'memememememmememememe' it is supposed to be about the common good. i am a middle class person, and my taxes are indeed lower than they were under bill. do i care- fuck no. i would go back in a heartbeat.
this whole- 'it's your money' shit- jesus- you have to pay for what you get or you are a thief. taking it by voter fraud and legislative arm twisting doesn't make you not a thief.
kerry made me want to puke in that debate.

[robbedvoter]

8. Gina has veto power" vs "Mary, help!"

When members of his traveling press corps asked him to comment on the matter as he boarded his plane Wednesday morning, Dean initially said, "I'll be happy to do it."
A moment later, he caught himself.
"Gina has veto power," Dean said, referring to Glantz. "I'm not allowed to say I'm happy to do anything anymore."

[mopinko]

11. no more 'shooting from the hip;

isn't that what he is supposed to do? it's he being a good little candidate now?

[Soul On Ice]

20. Good grief!

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=81930


:yourock:

[Soul On Ice]

21. sorry about that

inadvertently posted twice

[demdave]

13. Dean has detailed how he would spend the repealed tax cut

on various other programs. Does he explain where the money to replace the non-repealed money will come from? What already proposed programs will he now not offer?

On an aside, during the last debate, and stated in this article, Dean stated "There was no middle-class tax cut." because we are now paying more in property taxes and tuition. If he increases my taxes, how will he lower tuitions and property taxes. It looks like I get a double whammy.

[RUMMYisFROSTED]

25. Balancing the budget frees up money from debt service.

We're talking tens of billions a year.

[cspiguy]

33. you forgot medical bills are higher

regressive tax.

[Insurance_Analyst]

26. Too little too late, Governor Dean.

I hope the college kids in this forum take note!!!

[adamrsilva]

34. I'm in college

Dean's still going to repeal the tax cuts, right? So what's the difference? He's always advocated tax relief for the middle class, he's just moved it up. Yes, that's because of the criticism, but he is not going against his position on the Bush tax cuts.

[Moderator]

35. robbedvoter

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