As the President and Congress lock horns over federal spending and tax law, the American middle-class continues to lose. Without legislative reforms, millions of middle-class Americans will be subject to the AMT, which was originally designed to catch millionaires who were not paying their fair share of taxes.
At a time when Republicans are championing calls of patriotism and accusing Democrats of not "supporting the troops" the party of the President needs to reevaluate their patriotic duties. In his weekly radio address, President Bush demanded Congress pass AMT tax reform. His call was the right one, but like he so often does, President Bush mixes a sound principle with unsound specifics. In the same breath in which he calls for tax help for the middle-class, he treatened to veto any AMT reform that raised other taxes to pay for the loss in revenue. So basically, President Bush wants tax reform for the middle-class but not at the expense of large corporations and hedgefund manager, who make millions of dollars.
The President and his congressional allies are therefore asking for middle-class tax reform, but don't want to increase taxes on the super-rich to pay for that lost revenue. But, if taxes are not raised, where will the difference by made up? In reduced social program spending of course. But this spending supports many of the social programs favored and supported by middle-class Americans.
It is time for the Democratic Party to abandon its policies of pandering to select interest groups and frame 2008 as an election built on saving the middle-class. Front and center of this election strategy must be the tax issue. Democrats must get middle-class Americans to ask themselves, why should I support a political party so irrationally against taxes? No one likes taxes, but they are a matter of necessity for any post-industrialized society. Therefore, why should those most able to pay and contribute not be asked to provide their fair share? It is the business executives, bankers, stockbrockers, and hedgefund managers who reap the most benefit from the American economy. They receive disproportionate rewards and therefore they should pay disproportionate costs.
While Republicans have adopted the belief that the only way to be patriotic is to pay out $800 billion for a war without question, they should have already lost the political debate. But Democrats have failed to frame the issue. Tax policy needs to be framed in a patriotic context. Through true and revolutionary tax reform, true change can be achieved.
As Thomas Friedman wrote, in his support for a gasoline tax...
"I can't believe that someone could not win the following debate:
Republican Candidate: 'My Democratic opponent, true to form, wants to raise your taxes. Yes, now he wants to raise your taxes at the gasoline pump by $1 a gallon. Another tax-and-spend liberal who wants to get into your pocket'
Democratic Candidate: 'Yes, my opponent is right. I do favor a gasoline tax phased in over 12 months. But let's get one thing straight: My opponent and I are both for a tax. I just prefer that my taxes go to the U.S. Treasury, and he's ready to see his go to the Russian, Venezuelan, Saudi and Iranian treasuries. His tax finances people who hate us. Mine would offset some of our payroll taxes, pay down our deficit, strengthen our dollar, stimulate energy efficiency and shore up Social Security. Its called win-win-win-win-win for America. My opponent's strategy is sit back, let the market work and watch America lose-lose-lose-lose-lose.'"
How does anyone lose that political debate???
http://news.yahoo.com/s/ap/20071117/ap_on_go_pr_wh/bush