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Tuesday, November 1, 2011
US Rep. Jan Shakowski: "Wealthy should pay higher taxes": She has a plan to do it
Rep. Jan Shakowski Democrat Member of the Progressive Caucus. Which should give you a pretty good idea of where she is politically. Not as far to left as Rep. Dennis Kucinich but definitely pretty far to left, similar to Sen. Bernie Sanders. Has a Tax Reform plan that keeps the Federal Income Tax which is my main problem with it. I would like to replace the Income Tax with what I call a Progressive Consumption Tax. But what Rep. Shakowski does is brings in a couple of new Tax Rates, one for people making over a million dollars. And a higher rate for people making over a billion dollars. What I like about her plan is that the uses the extra Tax Revenue to pay down the Federal Debt and Deficit. And doesn't increase taxes on the Middle Class which is something that her Progressive Caucus colleagues want to do. They want to go back to the pre 1981 Tax Rates, with the highest Tax Rate at 70%. Or even go back farther to the 1950s when the Tax Rates ranged from 25-90%. And use all of that Tax Revenue not to pay down the debt and deficit but for more and new Social Insurance spending. Rep. Shakowski who is on the Ways and Means Committee the Tax Writing Committee in the House. And has large jurisdiction over Economic Policy. Wants to leave the Bush Tax Cuts in place but push the old highest Tax Rates back up to I believe 36 and 39%. But then create new Tax Rates that are even higher, I believe 40 and 45%.
Lets look at politics of the Shakowski Tax Reform plan, Rep. Shakowski is not even the Ranking Member. Top Minority Member or Chairman top Majority Member of the Ways and Means Committee. Meaning she can't force a vote or a hearing on her plan, let alone get the votes for it, especially in a Republican House. So its not going to pass in the House in this Congress, especially with almost every Republican Member of Congress. Against Tax Hikes right now, now if President Obama is reelected and the Democratic Party holds the Senate, and wins control of the House. Then maybe 2013-14, probably 13 because 2014 will be another Mid Term Election. But maybe by then the Congress and the President will be serious about Deficit Reduction then. And Tax Hikes on the wealthy and real Entitlement Reform will be on the table then. But thats over a year away and at least Rep. Shakowski has a real Tax Reform plan. That doesn't make her look like a socialist, progressive sure. But in a responsible way coming out in favor of a Tax System based on what people can afford to play. Not increasing taxes on people who are struggling right now.
I give credit to Rep. Jane Shakowski for putting a serious Tax Reform plan on the table, though I wouldn't vote for it. As a long term Tax Reform plan but something that can be useful. As we are trying to get our debt and deficit under control, as long as it also addresses. Tax Loopholes and closing those as well, which are very expensive along with Corporate Welfare. And then we would be able to lower Tax Rates on everyone including business's long term.