I learned most of my politics from my father. There are two things he taught me about taxes. The first is that taxes never go down. The government always needs more money. Now he didn't tell me this because he is a government hater. He is a life long Democrat and believes this just to be a fact and as far as I can see it is true. Like your own budget the cost of most things you buy keeps going up. Therefore it costs you more to operate your household budget every year. The second thing he taught me is that there is no such thing as a "tax cut" only tax shifts. Meaning that the federal government may lower your taxes but because of that your state and/or local taxes will probably go up. The reason I bring this up is because the topic was discussed by Howard Dean in the debate on Sunday.

NORRIS: I have a follow-up for Governor Dean.

A hallmark of your campaign has been the pledge to repeal the Bush tax cuts across the board. Does this include tax cuts that are intended to provide some measure of relief for the middle class, the child tax credit or the lifting of the marriage penalty?

And specifically, what kind of tax relief are you proposing for middle class and working-class families?

DEAN: Well, we've got to look at the big picture. If you make over $1 million, you've got a $112,000 tax cut. Sixty percent of us got a $304 tax cut.

And the question I have for Americans is, did your college tuition go up more than $304 because the president cut Pell Grants in order to finance his tax cuts for his millionaire friends? How about your property taxes, did they go up more than $304 because the president wouldn't fund special ed, wouldn't fund No Child Left Behind, wouldn't fund COPS and -- how about your health care payments? Did they go up more than $304 because the president cut thousands of people all over America off health care because he wouldn't fund the states' share that they needed to continue to insure people, and that was shifted to insurance and the health care premiums?

Middle-class people did not see a tax cut. There was no middle-class tax cut. There was a Bush tax increase with tuitions, with property taxes, with health care premiums, and most middle-class people in this country are worse off because of President Bush's so- called tax cut than they are better off.

NORRIS: And tax reliefs that you might propose?

DEAN: Pardon?

NORRIS: And what kind of tax relief are you proposing for middle- and working-class families?

DEAN: We -- ultimately, we will have a program for tax fairness. But right now, I agree with John Edwards. You cannot balance the budget and tell people you're going to keep all these tax cuts. I am going to balance the budget, and I'm going to do it in the sixth or seventh year of my administration. We're also going to have health care...

Here is the full transcript. Some refer to this phenomena as Bush Tax. Some of the other candidates (Kerry, Lieberman, Gephardt) started in on him for wanting to take money away from the middle class. But if you look at this logically, as Dean did-- I know I shouldn't bring logic into politics--There was no middle class tax cut. This is an important topic because tax shifts like those mentioned by Dean tend to hurt the poor and middle class much more than the wealthy. Here in Texas the Legislature is once again looking at different ways to finance public schools. The plan put forth by our Lieutenant Governor is to decrease property taxes and increase the sales tax. Now at least he doesn't try and say he is lowering taxes, like your President, but a shift like that will also hurt the poor and middle class much more than the wealthy. So maybe dear old Dad knew what he was talking about?
- posted by Mom/Dad @ 7:16 AM