Author Archives: scottsoapbox

Democrats, Party of the Rich

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The demographic reality is that, in America, the Democratic party is the new “party of the rich”. More and more Democrats represent areas with a high concentration of wealthy households. Using Internal Revenue Service data, the Heritage Foundation identified two categories of taxpayers- single filers with incomes of more than $100,000 and married filers with incomes of more than $200,000 – and combined them to discern where the wealthiest Americans live and who represents them.

Democrats now control the majority of the nation’s wealthiest congressional jurisdictions. More than half of the wealthiest households are concentrated in the 18 states where Democrats control both Senate seats.

This new political demography holds true in the House of Representatives, where the leadership of each party hails from different worlds. Nancy Pelosi, Democratic leader of the House of Representatives, represents one of America’s wealthiest regions. Her San Francisco district has more than 43,700 high-end households. Fewer than 7,000 households in the western Ohio district of House Republican leader John Boehner enjoy this level of affluence…

It should be noted that income and wealth are often confused.  Due to the fact that IRS income data is much easier to come by, but not a reflection of “wealth” or net worth. For instance, you could make $120,000 in southern California and be financially unable to purchase a home.  You could also have a net worth north $100 MILLION dollars, but show an IRS income of less than $100k. (Which is actually how we got saddled with the AMT).

Just a quick Fair Tax side note: focusing on and taxing income mainly hurts people trying to become rich; not the actual rich.

Senate Tries For Amnesty Again

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Perhaps named for the hope that the voters wouldn’t notice this time, the DREAM act amnesty failed cloture and was killed before it could get going. Here’s the latest plan for stealth amnesty:

Legal status for illegals that are less than 30, have graduated high school or have a GED and claim that they entered the country illegally before turning 16. (We’ll just check that against their immigration records – oh wait.) Also, in the interest of “family unity” or other “humanitarian purposes”, their families can stay. Families simply need to be claimed not verified by blood test or other means.

Popular guess-timates place this at legalizing 12 of the guess-timated 20 million illegals. It did strike me as funny that when the Dems are trying to slip amnesty under the radar, “a child” is defined as someone under 16, but when they’re expanding government health care “a child” is someone under 26.

Democrats To Raise Income Tax Max To 44%

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Disguised as a “fix” for the Alternative Minimum Tax, the Dems have proposed a 4% surcharge on anyone making over $150k ($200k for couples). This coupled with the decision to let the tax cuts that spurred our economy to new records expire (an easy way to raise taxes) means the top bracket for individuals will become 44% in the US. For comparison, the average for developed countries is 35.7%.

Now some of you may say that such wealthy people can afford to give us all their money. Unfortunately, small businesses owners and farmers, often pay taxes as individuals not as businesses (like corporations do). So if you’re out to screw the rich – remember that when the family loses their farm, or the small business down the street has slow customer service because they had to lay off some help to pay the new 9% of taxes.

And it’s actually even worse: the 4% increase is a surcharge not a rate hike. The difference? Surcharges are applied before tax deductions. Got a kid in college? Paying all that mortgage interest? Gave a large donation to Katrina relief? Doesn’t matter… 4% on it ALL.

So on top of punishing the successful, we’re now going to take away their incentive to give money to charity? Though, I guess if we just take even more of their money away it won’t matter if they give to charity ’cause the government can fill that void as well. Well at least until they rich take their money & income to another country to avoid the taxes. 50%, 70%, even 100% of nothing is way less that 35% of something.