I wasn't home for the last debate, but from the soundbites I heard, Kerry & Bush are still sparring over the Bush tax cuts. Kerry sez that the tax cuts benefitted only the wealthiest Americans. Bush sez most of the tax cuts went to the middle class. Hard to know who to believe.

Until now. Take it from one who works in the field & deals with this every day, the truth is somewhere in between. The Bush tax cuts, in fact, benefitted everybody, but disproportionately benefitted the rich. Without getting too technical:

Let's start with the easy stuff, the creation of the 10% bracket, the elimination of the so-called "marriage penalty", & the increase in the child tax credit. These benefitted everybody equally.

As for the rate decreases, at each tax bracket the rates were decreased by 3%, cept for the top bracket applicable to taxpayers with incomes of over $311,950 (the top 1%), which was decreased by 4.6%.

It gets worse. The tax rate on dividends & capital gains was set at a maximum of 15% (for poor people, 5%). Technically this reduction applies to all Americans, but how many poor folks have income from these sources? For the top 1%, this amounted to a cut of 24.6% (on dividends) & 5% (on gains). This particular provision was enacted after we knew we were involved in a costly war & were staring at a record deficit. Kerry should be attacking this provision harder, but I don't believe he or any of his staff understands it.

The estate tax, which affected single people with a wealth of over $675,000 & married couples with a wealth of over $1.35 million (the top 1%), was repealed. The reason given by Cowboy George was that the tax had hampered small-business owners who wanted to leave their businesses to their families. This is a compete fabrication. Under Clinton, the estate tax law was amended to exclude family-owned small businesses!

During the VP debate, Cheney chastised Edwards for using a so-called "S corporation" for (legally) avoiding Medicare taxes. In the town hall debate, Bush criticized the Kerry plan coz it would raise taxes on S corporations. So which is it, guys? It's good for an S corp. to avoid taxes, unless Edwards is doing it?

Finally, I read today that Teresa Heinz-Kerry's 2003 tax return has been released. Hard-thinking editorial writers & commentators are criticizing the fact that she reported a 7-figure income but paid taxes at a rate of about 13%. They're accusing Kerry of hiring a team of sharp tax attorneys to avoid the very taxes that he wants people with incomes over $200,000 to pay. Wake up, guys! Teresa's tax rate is so low coz of the 15% dividend/capital gains tax rate enacted by Bush! (See above.) And which, BTW, Kerry has vowed to repeal.

So that's today's sermon...

Thank you Pastor Joe! I love hearing "the poop, the whole poop and nothing but the poop" from "The People".
2 weeks to go!!!!

Thanks, Joe. I sent that to an "undecided" I know who thinks he makes enough that he "needs" to be a Republican (but doesn't make near enough to qualify). Interesting that a Blunderite can make this more comprehensible than all the analysts and journalists on TV can manage to do.

This came across my desk this morning.

Last week, Congress (read that: the Republicans in Congress) passed a bill cutting the tax rate on manufacturers by 3%. (Not a bad thing in & of itself.) Bush is expected to sign the bill, but probably won't until after Election Day.

Why? The bill itself is 663 pages long coz it was loaded with special-interest give-aways. Ted Kennedy called it a "lobbyist's dream." John McCain called it the most disgraceful example of "pork-barrel" spending that he has seen in his entire Senate career.

Among the industries which will benefit from special tax breaks:

1. Importers of ceiling fans
2. Alaskan pipe line diggers
3. Manufacturers & importers of bows & arrows
4. Manufacturers of tackle boxes & sonar fish finders
5. Wholesalers of distilled spirits
6. Coffee roasters
7. Native Alaskan whalers
8. NASCAR track owners

Somebody explain to me how this type of thing helps the country.

~~~~AMEN~~~~
Pastor Joe! what Ceas & louise said!
Its only at Election time, I find myself tryin to avoid a very dear friend of mine. He is 46 yrs, has had 3 heart attacks, finally won disability, & has 2 computers in his heart. The cost on the hard ware alone is in excess of 250K! And for some reason he just doesnt get it, he'd NEVER received that sort of health coverage if the Republicans had had their way. I am so glad he DOES get the care he's gotten. But as an individual w/o a job, private health insurance etc. all of this falls to you, me, Ceashel, louise,& well ya know. I try to tell him, the fact that he is alive today, is because WE DEMs care about everyone! Still he sez I'm crazy!
Sorry for such a long post, just got me to thinkin.... I know, I know, I aint supposed to do that! Thank for pointing that stuff out! bye