Rep.Dreier (R-Ca) has introduced H.R. 99 “The Fair and Simple Tax (Fast) Act”. This legislation which is co-sponsored by Charlie Dent (R-Pa 15) is just another example of example of republican false advertising as it is not fair or simple, and is nothing but another giveaway to the top 1%.
In the statement submitted to Congress on January 5, 2011 Rep. Dreier states “The FAST Act is based on the principle that Americans deserve a tax code that is fair and easy to understand.” I will give that point to Rep. Dreier but will ask this question, What is fair about taxing a person who works for wages at the same rate or even a higher rate than a person who receives the majority of income not from labor but interest or gains on stock transactions? (Rep. Dreier’s statement can be found here( http://www.gpo.gov/fdsys/pkg/CREC-2011-01-05/pdf/CREC-2011-01-05-pt1-PgE10-2.pdf) the actual legislation can be found here http://www.gpo.gov/fdsys/pkg/BILLS-112hr99ih/pdf/BILLS-112hr99ih.pdf there is nothing about this legislation that is “Fair”,or “Simple” it does nothing to eliminate special tax provisions favoring the wealthy, reward success, or create jobs. While it does reduce tax rates on some selected individual by reducing the number of rates its main impact is to increase taxes on the poor while reducing tax rates on the wealthy.
Rep. Dreier may attempt to argue that the “FAST” Act increases the marginal rate at the top from the current temporary rate of 25% to 30% it does represent a 9% reduction in the rate that was do to expires at the end of last year and is again scheduled to expire next year. But as with all things the devil is in the details. The simple fact of the matter is the top 1% could never work another day in their life, create not a single job and earn millions of dollars in income and pay the same rate on those millions as someone working 80 hours a week earning minimum wage. Now I want Rep. Dreier (R-CA) or Rep. Dent (R-Pa) in fact I will welcome an explanation from any republican that can tell me how that is “FAIR”. The fact is individuals trading in stocks on the exchanges does not create jobs in the broader economy while it may create a few jobs at the exchanges do to increased volume the purchase of 1 share of IBM or a million shares of IBM does not create a single job at IBM or put a single dollar into IBM for the creation of jobs.
The tax code does need reform in fact it needs major reform but this is not the way to do it. Today the tax code punishis work while rewarding “Investing” in other word rewarding old wealth at the expense of creating new wealth.
It is time for Rep. Dreier (R-Ca), Rep. Dent (R-Pa), and their cohorts both Republican and Democrat to stop serving the elites at the expense of the majority. Perhaps Rep. Dreier and Rep. Dent need to spend some time reading Federalist 1 and it’s comments on the elite. After all they did take an oath and now were in that oath do I recall Support, Protect, and Defend the wealthy.