Tax hikes on the rich “negligible” for growth on the economy
Washington- A recent report was re released after Republicans tried to claim that tax hikes on the wealthy would be detrimental to growth in the economy. The report states that revoking the Bush era tax cuts on the wealthiest Americans will have a “negligible” impact on the economy. The report also states that the the Bush Era tax cuts did very little to help spur the growth of the economy. The report also stated that the Bush Era tax cuts helped fuel the income inequality among income classes.
“Analysis of such data conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth,” the study says. “It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth.”
The study takes into account tax rates and economic growth that dates back to the world war 2 era. Needless to say Democrats pounced on the opportunity to prove to Republicans that tax cut for the wealthy don’t necessarily equate to growth and that the top two percent of earners should go back to Clinton Era tax rates when growth was substantial. Republicans, as they always seem to, complain and swear that raising taxes on the wealthy will only bring gloom and doom for the US economy.
“What this report demonstrates is at the core of the debate we’re having right now,” said Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, adding that it “put a stake in the heart of the Republican argument that small increases in marginal tax rates for wealthy individuals somehow hurt economic growth.” He also noted that during the Clinton years with tax hikes the US economy was doing a lot better off than when Bush introduced his tax cuts.
“What this CRS report does is take away the last little fig leaf that [Republicans] had to justify big tax cuts for very wealthy individuals,” Van Hollen said.
“Republicans have simply failed to face up to the reality,” said Rep. Sander Levin (D-Mich.), the top Democrat on the House Ways and Means Committee. “I hope that this CRS report will add further impetus to the speaker to sit down with Republicans, because when I’ve talked to a few of them, I don’t think they’ve had this discussion.”
Republican lawmakers claim that the report was written by a left wing study group and that its findings are biased and therefore fallacious.
This is a continuing trend with Republicans denying the facts when they stare them point blankly in the face. Maybe this report will be the wake up call needed to raise taxes on the top 2 percent.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, income tax, republican, Republican Tax, Repulbican Tax, tax code, tax pledge, tax reform, tax the rich
1% Bank Exec Elites Caught Up in Tax Evasion
Frankfurt- Deutsche Bank is a behemoth monster full of bankers and fat cats. It is no wonder that during a raid at their headquarters officials identified two of its highest ranking officials as potential tax evaders. This doesn’t fare as timely news for the bankers of this country since the recent fallout of the global economy and woes that have already plagued this bank.
Authorities in Germany are investigating whether or not employees of Deutsche Bank were conspiring to avoid paying sales tax on carbon emission certificates. co chief executive Jurger Fitschen and CFO Stefan Krause are suspected of playing a role in signing documents that may be tied to this sales tax evasion.
Yesterday a swarm of officers searched Deutsche Banks including private homes. During this investigation the police took into custody 5 individuals that have yet to be identified.
The bank is providing its full cooperating and said the problem has already been resolved by adding“Unlike the Public Prosecutor’s Office, Deutsche Bank is of the opinion that this correction took place in due time,” It made no further comments
No one knows whether or not the top executives were directly aware of the egregious actions they were engaging in as executives like this sign many documents in the course of the day. Prosecutors have yet to comment on whether or not they were accusing these individuals of purposely signing these documents.
With the release of this shocking news it is unexpected as to how the bank will recover from this blow.
Like other banks, Deutsche bank is trying to recover after the global debt crisis that we recently faced, weak economic growth, and new crippling regulation. One regulation in particular requiring more capital to be available on hand could be especially crippling to the bank.
Deutsche bank has recently trying to improve its image, but legal issues keep on creeping up haunting a bank that is trying desperately to turn around. Only time will tell if this ethical turnaround is real or if this is just a typical horse and pony show.
Categories: Federal Tax, Tax Evasion, Tax Law Tags: avoiding taxes, federal income tax, federal tax, income tax, tax code, tax evasion, tax fraud, tax law
Companies avert paying taxes AGAIN before their taxes go up
The wealthy are scrambling to take advantage of the current tax code by exploiting the system in mass numbers and driving profits into their pockets before the tax hikes on the rich Obama wants go into effect.
Countless companies including Costco and the Las Vegas Sands have declared what they call “special dividends’ to liquidate tax free capital. This amounts to over $20 billion dollars in this last quarter alone. Other firms are shelling out bonuses, commissions, and dividends early before the wealth bombshell is to be dropped on the wealthiest few.
“We’re going to have a big jump in household income in the fourth quarter” said Crandall. “It’s going to be in excess of $50 billion.”
A majority of this scrambling is occurring in the uppermost crust of the elite. The 2% of the wealthiest Americans will be the benefits of this early cashout. President Barack Obama wants to target these wealthiest of individuals to help solve the fiscal crisis that lies before us by raising their rates.
Of interest in 2009 52% of the 124 billion dividends reported by federal government went to this 2% according to the IRS. A definite symbol of how backwards our world has become with income inequality.
This statistic alone proves just how unequal income distribution really is as the rich get richer and the poor get poorer. The wealth has shifted from labor income to capital income, an income with yields the benefit of lower taxes
How will this increase in taxes effect us in the long run? The rich typically save rather than spend so it is a good indication that a tax increase won’t hurt the economy by too much. It is about time that the wealthy began paying their fair share of this American Dream rather than being the gold tipped parasites that they are.
Categories: Federal Tax, Income Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, federal tax fraud, income tax, tax code, tax court, tax evasion, tax fraud, tax law, tax reform