Taxes and Adjusted Gross Income: The Multiple Deceptions of the Health Care "Debate"

Conservatives are suddenly trying to make a big deal out of the Democratic "sur-tax" being applied to "adjustable gross income", instead of to "taxable income". In the process, they are using the leftist tactic of exaggeration and distortion. See the previous entry. There is a DLIBERATE attempt to confuse "gross revenue" and "adjusted gross income". I even heard one guy last night try to suggest that some people in this country file a form 1040, while others do not, and that thiis "surl-tax" will affect almost everyone filing a form 1040. This is all absurd. EVERYONE (essentially) files a form 1040. Regular corporations, of course, do not, but they are subject to DOUBLE TAXATION--since taking the money out means you have taxable income on--yes--your form 1040. That is another topic, but the Repubican/conservative idea of NO corporate income tax is a TERRIBLE idea, because it encourages GAME PLAYING (as ordinary income is turned into capital gains, which Republicans/conservatives also want to not tax, or tax at a very low rate).


What is going on here? It is deception all of the way around. The left is deceiving as to what they are doing, and conservatives are trying to fight back with deceptions of their own. I don't really have a problem with this, in one sense. The left DECEIVES, and I do not favor turning the other cheek. Meeting deception with deception does not bother me much, except I don't think it is very good tactics.


For example, say that Democrats CHANGE their plan so that the sur-tax is on taxable income, rather than adjusted grooss income? Does that make the Democratic health care plan any better? Don't be stupid. Yet, if you base your opposition to the plan on tihis one (deceptive" argument about the tax code, what do you do when Democrats simply drop the "adjusted gross income" alpproach, and tartet their "sur-tax" at "taxable income", saying that they have MET your objections?


Republicans/Conservatives have simply GOT to stop complicating these arguments. They have made that MISTAKE with the Tax argument already--getting away from the simple Reagan plan of low rates for everyone, with only two non-zero tax rates.


Republicans/conservatives need to hammer home the idea that more taxes do NOT raise revenue, and will stifle any economic recovery--no matter how they are structured. Republicans need to hammer home that the new revenue to pay for government health care WILL NOT EXIST, not matter how the Democrats "tax the rich" (ruining the economy in the process), and that the middle class will end up paying--one way or another. There ain't no such thinkg as a free lunceh. But Republicans/conservatives keep COMPLICATING that message, with the idea they can compete with Democrats (leftist kind) in DECEPTION. Not likely.


This idea of eliminating/phasing out deductions is already part of the tax code. Yes, it is true that if you give away all of your income to charity, and the charitable deduction is eliminated for your adjusted gross income, you will pay taxes on money YOU DO NOT HAVE. But Democrats were already proposing doing away with these deductions for "the rich", even apart from health care. In fact, we ALREADY "phase out" a number o "deductioins/exemptios for "the rich" as a way of raising taxes on "the rich". Romald Reagan proposed getting rid of many dedutions IN EXCHANGE FOR lower rates, and a simpler tax system. What we have done since Reagan is PLAY GAMES with the tax code to RAISE TAXES, and to complicate the tax code by going back on that implie promise of lower rates in exchanve for reduced deductions. That means that the tax rates for "the rich" are actually SKYROCKETING, to the equivalent of higher rates than even BEFORE Reagan (if Democrats get their way). Repubicans/conservatives should be HAMMERING this idea that highter taxes on "the rich" raise revenue, and hammering home the idea that higher tax rates are only going to kill the economy. This should be done in the context of advocating a SIMPLE tax system, and not a more complicated one. Unfortunately, the Repubican "plan" on health care is a central planning plan COMPLICATING THE TAX CODE with this fairly complex system of tax credits (wellfare for the middle class--except there ain't not such thing as a free lunch).


In fact, Repubicans/conservatives are ven pushing an anti-federalims plan whereby the Federal Government makes Idaho (for example) make its health care insurance plan available to EVERYONE--Republicans/conservatives call this a "national market"!!!! How can states come up with their own "solutionis" to health care insurance if the Federal Government is going to make it IMPOSSIBLE? And Repubicans claim to believe in FEDERALISM!!! They DON'T believe in any such thing!!! Yep. NATIONAL "tort reform" (ESPECIALLY on malpractice) is totally unnecessary. The states can do it, as Texas has. It is another central planning "solution" for political purposes.


Yes, health care "solutions", and taxes, are going to DEVASTATE doctors, and other "professionals". Are not many of these people that are gokng to suffer the double whammy of higher taxes and "cost containment" doctors, and other people in health care corporations? Damn right they are. The idea that this assault on HEALTH CARE small business (which many doctors are) will help health care is a major delusion/deception. It is small comfort that the increasingly leftist AMA has brought this on itself by failing to oppose this stuff strongly, and with conviction.


We are headed for disaster, and at least part of the problem is the seeming acceptance by EVERYONE (except me) that we need a "comprehensive", central planning "reform" of our entire health care system. That is the ultimate DECEPTION here, and it seems to me it is a deception coming from all sides, including Repubicans and conservatives.