Dilbert1234567

i honestly dont see how giving 48% of america less than 100 dollars will help this economy.

Here si an essay i wrote a little while ago:





In the coming months, President bush wants to release step up his tax cut to stimulate the economy, although he pushes it as a fair and balanced plan it is not, he shows all the points that are closest to being fair but in reality all the benefits are skewed to the rich. Why does president Bush want to get rid of the taxation of the dividend when most of the businesses not even pay taxes on it anyways? Moreover, who will this tax cut really help.

First off, the plan does seem fair, and for all the reasons that bush raves about it is, but what is fair is not always. For the most part, the rich do pay most of the taxes, so if there were to be a tax cut across the board, they should receive a disproportional most of the money. However, this is not the case. Where as bush publicizes his stereotypical “family of 4, making 40,000 a year” as cutting 96% off there taxes a reduction from $1178 to $45 a year. Unfortunately, most of America does not have two kids, which make up for $800, most of the tax decrease. Where as he bends the truth the typical family with kids has 1.86 kids, but there is only an average of .89 kids per family in the US (Family in the second instance being one tax return). Further more on fairness, where as stated above, the rich should get more back because they paid more in the first place is fair, but they should get the same percentage back as what all classes get back. In bushes plan, those making less than $10,000 would get back about $6, where as taxpayers making more than a million would get back $45,098. Now I’m not going majoring in math but $6/$10,000 < $45,098/$1,000,000 in fact it is 75 times less. Now although these statistics may change depending on how you slide the facts around, for example you could give the $10,000 wage earner a kids and it would equal it out percentage. Nevertheless, the idea is still there, the rich are still getting more from it.

Another parts of the tax cut if the elimination of the double taxation on dividends. He wants to do this because he says it is unfair to the consumer and because he says it will boost the prices of the stock. First off, for the most part, most business is able to avoid the taxation of their dividends. Not like savings accounts and money market funds, which are taxed yearly, corporate profits compound tax-free until they are played as dividends or sold as stock. Moreover, if they are passed to heirs, all the taxes, and the taxes of a lifetime is wiped clean. In addition, they are exempt from social security and Medicare taxes. Unfortunately all this would do is it would make it that much easier for companies to literally steal from there employees by pushing the cost onto there paycheck

Companies find more and more ways to avoid the corporate income tax. Unlike, say, interest on a savings account or money market fund, which is taxed every year, corporate profits are allowed to compound tax-free until they are paid out as dividends or the stock is sold. A notorious quirk in the tax law wipes out a lifetime of taxes on stock that is passed on to heirs. Dividends and capital gains are also exempt from the Social Security and Medicare taxes. One way or another, rare is the dollar of corporate profits that bears a tax burden heavier than the burden on an employee's wages.

Unfortunately, these cuts will only truly help the wealthy, where most people own stock; it is in their 401k and other retirement accounts, which are already shelter from these taxes. 90% of all stock is owned by the richest 10%, where as it continues to 42% of all stock is owned by the richest 1%. The help is going to the wrong people; the rich do not need the money.

The whole idea behind bushes plan is to jump-start the economy by putting money into the consumer’s pocket. Who would spend the money? Would the person who is making $10,000 a year spend their $6, probably? It is not enough to do any thing with though it would probably go towards food or some other necessity. This is not what needs to be stimulated. What about bushes favorite “$40,000 a year 2 kids” they would get back over $1000, what would they do with the money? If there like some of America which does not know if they will have there job 6 months from now, they would probably save it. If they have a secure job, then what well they may spend it but most likely, they would put it to save for collage with two kids and all. Again not getting much back into the economy.

Now to the very rich they will rake in almost $50,000 from the tax cut, what will they do with the money., they might spend it, but what would they need, they already make several million a year and don’t need anything else. So they would probably invest it, but in what. I think they would probably invest in stock, not just any stock but a stock that gives dividend. Why they’re set to go up real soon and the checks are set to go out before the dividend cut is I hope that I’m not the only one that thinks this is fishy. This looks like just another president trying to outsmart the American public for his rich friends and his big business friends.

__________________
Donate Blood!

"Love is not finding the perfect person, but learning to see an imperfect person perfectly." -Sam Keen