Constructive gadfly
Published on July 10, 2004 By stevendedalus In Politics

Single issue voters are not necessarily shortsighted if the issue affects the state of the union. The war or the economy is far-reaching. However, fixation against gay marriage is shortsighted since it does not threaten the nation. Bashing “Hollywood liberals” is another that hardly scars the community of values. Hollywood laissez-faire, however, is an important issue when it commercializes sex, violence, and anti-heroism and should be jotted halfway down in the voter’s notepad.

Even if the voter accumulates a laundry list of cultural values from church-going to gun-control it should scarcely influence the voter when weighed against home defense, war and the economy. For instance a candidate that does not wear religion on his sleeve, believes in a woman’s right to choose, and is on the side of gay marriage is not going to displace his stand on a strong defense and economy. The voter should be shrewd enough to sweep aside his cultural posture in order to make the decision as to how the candidate intends to improve the economy and to prioritize war, peace and defense.

In the realm of economics, Kerry, for example, wants to rollback the tax cuts for the well-to-do so that he can prioritize the need for comprehensive health care. Obviously the majority of those making $200K or more, will oppose it — that’s only fair even though the rich know very well it is not a punishing tax hike inasmuch as the cut never should have been introduced in the first place in face of the ever-growing national debt. On the other hand, there is an obstinately legitimate argument to the trickle down theory that in the long run improves the economy, yet overlooking the sacrifices the lower class has to make for its patience and trust in the investment class. Moreover, there is no guarantee that investments are aimed at the betterment of infrastructure, environment or for that matter American industrialization. Since all four candidates are multi-millionaires, I assume that they have substantial investments overseas.

As for defense, it is not a question of for or against but in what manner the $billions are appropriated to arrive at an enduring peace. With the immediate threat of terrorism, does the candidate primarily want expenditures to combat the threat or should he still consider the $billions for missile defense and how much should be appropriated? Further, should war based on questionable intelligence be the norm or should war be declared only in face of a clear and present danger to the nation and/or truly democratic allies abroad?

These two overriding factors dwarf surficial biases concerning cultural values. For in the last analysis a strong defense and economy are the means by which citizens can develop their tastes for cultural preferences that hopefully do not step on the preferences of others.

 

Copyright © 2004 Richard R. Kennedy All rights reserved. Revised: July, 10, 2004.


Comments (Page 2)
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on Jul 11, 2004
stevenandous, what would you know about tax consultants? Of course I've talked to all kinds of accountants over the years. The fact is, unless you're a huge company, there are not very many ways to save on paying taxes.
on Jul 12, 2004
I don't pretend to be a tax expert but there are many ways for a moderate business such as yours to take advantage of depreciation when growing a company. And if you claim business use of an SUV or Hummeryou get up to $100,000 write off. Kerry, by the way, is not talking about young thriving businesses.
on Jul 12, 2004
Draginol, you're right that I have no personal experience with small businesses. While I do personally know several people earning over $200K, none are small business owners. (They're mainly investment bankers--this colors my view of what the "typical" person with high income is like.) So I am indeed relying solely on third-party sources, and you undoubtably have more personal expertise on the subject than I have. With that in mind, I have several questions about your post #15.

If you're a Democrat, you cynically take advantage of people's ignorance of the tax system and focus on C-corporations which is what they talked about in that article


Where did you see this? I saw one claim that the Democrats's statistics were focused on sole proprietorships. ("One official said the IRS was limiting its definition of small businesses to sole proprietorships, leaving out huge numbers of S corporations and partnerships.") Nothing about C-corps in the whole article though, unless there's some synonym for C-corp that I'm not aware of.

This is pretty central to your post, so I think I need this clarified before I ask the rest of my questions. I'll hold off for now.
on Jul 12, 2004
I'm thrilled that vincible chimed in


Thanks. I was worried that you'd be mad about thread-jacking!
on Jul 12, 2004
Not at all, vincible. A single article can lead to a myriad of threads--most unrelated--but in your case, used as a relevant jumping board.
on Jul 12, 2004
There is a difference between a tax hike and getting rid of a credit that probably shouldn't have happened anyway when this country is so far in debt. JMHO.
on Jul 14, 2004
Right on target, Locamama.
on Jul 14, 2004

I don't pretend to be a tax expert but there are many ways for a moderate business such as yours to take advantage of depreciation when growing a company. And if you claim business use of an SUV or Hummeryou get up to $100,000 write off. Kerry, by the way, is not talking about young thriving businesses.

You do seem to pretend to be a tax expert. You're giving advice to someone who is pretty familiar with the tax system. No offense but my reaction to seeing someone mention depreciation expenses makes me want to go "Well DUH...".   Depreciation isn't a loophole or something. That's what I'm getting at.

And how do you know what Kerry is talking about? If you raise the taxes on individuals making more than $200,000 you're going to be raising the taxes on a ton of small businesses.

Virtually every LLC and S-corporation (and of course all DBAs) will instantly see their taxes increased.

Let me give you an example (a bad example but illustrative):  Stardock is moving to a new building. I am forming a Wardell Investements LLC to buy the building.  I will then lease the building to Stardock each month.  This is standard practice.  Wardell Investments IS a company. But the revenue it receives is counted as my personal returns. Raise he tax rate on those making more than $200k and you raise the taxes on Wardell Investments LLC.

My example isn't meant to illustrate that it's somehow wrong to raise taxes on that particular company.  The example demonstrates that raising taxes on individual rates affects companies. Lots of them. Millions of them.

That was half the point of the Bush tax cut in the first place.  Lower the taxes on the top 1% of personal filers and you are, in effect, lowering taxes on small businesses who employ the bulk of Americans.  Less taxes means more capital for hiring.

on Jul 15, 2004

I really sympathize with you on this. But in leasing, you have innumerable expenses--repair, maintenance, mortgage and interest--on your building to deduct from your return.

Good Luck in your venture.

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