Dean Tax Question

[Toucano]

I admire the courage Governor Dean displays with his plan to rollback the entire Bush tax cut.

But since the states have virtually all had to increase taxes (sales taxes, income taxes, property taxes, etc.) won't restoring the taxes on the federal level hurt the middle and lower income groups?

It seems to me that they will be subject to the restored federal taxes and the new state taxes. Once the state gets increases taxes (or fees for permits and such), it can be tough getting them recinded.

Would Dean be better restoring only those taxes on the wealthiest Americans?

[WaterDog]

1. It's called aid to

the states, which according to Paul Krugman, is the first normal thing done during Recessions.

[KaraokeKarlton]

2. I suspect that Dean will do whatever he can to get states to ease taxes

He has also talked about making some changes to the tax system so that it makes things easier on the middle class and low income people. First things first, though...there's a mess to fix and we all need to be willing to do our part to get on the right track. Dean is the man with the tough spine and determination to do it. Some of those things necessary aren't going to be popular, but they are necessary. Bottom line...if we don't pull ourselves up by the boot straps now, it's just prolonging the inevitable and costing more. Dean is right, regardless of how much some don't want to hear the truth. ALL the cuts have to go, and the sooner the better for our country.

[gully]

3. Most of us never actually got a tax cut, our prop taxes

educational expenses and sales taxes increased to pay for *'s tax cut.

Do you know Clarks position on this?

[Toucano]

5. Yes I do. n/t

[gully]

6. And it would be??

what?

[Toucano]

8. You can find that here.

http://www.clark04.com/whitepapers/01/

His plan calls for the rollback of the tax cuts on the top 2%, but leaves the tax cuts (for whatever they were worth) on the rest.

I think both plans have merit. Dean's will not be as easy to sell, but that doesn't mean it won't work. As I said in the beginning, it is admirable.

[MercutioATC]

4. Point well taken, but the repeal provides other benefits...

It WILL take time for cities and states to readjust their tax rates. In the meanwhile, however, three things will happen:

1) Affordable health care will become more accessible for lower and middle income workers. This will help in two ways. First, more people will have coverage and second, costs to emergency departments for unreimbursed medical expenses will drop dramatically (which will save health workers' jobs).

2) Education will recieve more money from the federal government, reducing the burden on state and local governments. In the near term, this will reduce or eliminate the need for school levies (tax hikes) and will preserve educators' jobs. In the long term, tax rates could very well drop as the need to renew existing levies when they expire would diminish.

3) Federal funding of infrastructure improvements would increase. This would create jobs.

Opinions differ, but I feel that the beneits outweigh the short-term pinch of some additional tax burden.

[Toucano]

7. Thank you

I appreciate all the responses. That plan seems sound.