Smoke and mirrors tax laws
May. 17th, 2006 04:56 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
javasaurusI saw the headline, "Bush signs $70B tax cut" and I winced. While tossing our future into the financial toilet with the worst deficit spending ever, he's reducing the available funds to pay for his little projects.
Then I read the article. First, some of the provisions only extend tax cuts already in place (the 15% max on cap gains and dividends and also some sort of small business tax). One provision relates to overseas contracts, and has been called an illegal trade subsidy by the EU, and the EU is threatening sanctions. The one glimmer in this law is a modification to slow down the impact of the alternative minimum tax for another year.
What's more, this tax cut sounds great to voters who only hear "$70B tax cut!" -- even if the majority of them won't be affected at all. It has been done to help businesses and the rich while at the same time impacting the voters for the coming elections. They are buying votes with smoke and mirrors.
Then I read the article. First, some of the provisions only extend tax cuts already in place (the 15% max on cap gains and dividends and also some sort of small business tax). One provision relates to overseas contracts, and has been called an illegal trade subsidy by the EU, and the EU is threatening sanctions. The one glimmer in this law is a modification to slow down the impact of the alternative minimum tax for another year.
What's more, this tax cut sounds great to voters who only hear "$70B tax cut!" -- even if the majority of them won't be affected at all. It has been done to help businesses and the rich while at the same time impacting the voters for the coming elections. They are buying votes with smoke and mirrors.
