Edwards' "No Poverty" Promise at Democratic Convention Not Supported By Kerry-Edwards Track Records
Kerry and Edwards support of tax structure that punishes middle - and low-income taxpayers, minories, and working women is inconsistent with "No Poverty" promise at Democratic National Convention
Seattle, WA (PRWEB) July 31, 2004
Democratic Vice Presidential Candidate John Edwards made a promise of “no more poverty” at the Democratic National Convention last night, offering as specific proposals more income tax breaks for healthcare, childcare and college tuition. According to Dwight Drake, a law professor and author of the new book Gutless Neglect: America’s Biggest Money Crisis, if Kerry and Edwards are serious about this promise, they should explain why they have supported a grossly unfair tax structure that has punished and continues to punish middle and low-income Americans, minorities and working women far worse than the federal income tax.
In statements made last night, Drake explained that over the past two decades Americans (primarily middle - and low-income workers) have paid excess payroll taxes of over $1.5 trillion to establish trust funds to pay future baby boomer retirement benefits, but every dime of those funds has been spent on other government programs. For eighty percent of Americans, the payroll tax bite on their incomes exceeds the income tax hit, often by many times. It is a (and some claim “the”) primary reason Americans are the worst savers in the industrial world.
Drake said, “The plan to pre-fund boomer Social Security benefits with high payroll taxes was a con from the get-go in 1983. For nearly two decades, an accounting gimmick has been used to shift huge operating expenses of the Government to low - and middle-income workers. Not a cent has been saved to fund the trillions of dollars promised the boomers. The Government's own accounting people call the trust funds an 'illusion'. The phony trust funds serve only to dupe the American people into thinking their benefits are funded through 2042. What is amazing is that the official Kerry-Edwards website continues to promote this deceptive illusion while labeling as “successful” the shameful, knee-jerk legislation that set the whole mess in motion in 1983.”
Drake further pointed out that, in 1999, it was Kerry, Edwards and other Senate Democrats who killed a "lock box" bill that would have restricted the governmentÂ’s ability to spend the Social Security trust funds (H. R. 1259). The bill had passed overwhelming in the House by a vote of 416 to 12, and nearly every Senate Republican favored the bill.
“The numbers are huge. For the past three years alone, the average annual payroll tax surplus raid has been about $159 billion. That’s $300,000 of excess taxes taken every minute from hard working Americans to pay other government expenses through a horribly regressive tax that the rich often avoid completely. By way of comparison, that excess payroll tax amount exceeds all incomes taxes paid by all corporations in America over the same time frame. And if something isn’t done, trillions more of excess payroll taxes will be siphoned off over the next ten years to pay other government expenses”. Drake concluded, “No matter how you cut it, it's been a horribly unfair deal for middle - and low-income Americans, minorities and working women. Kerry and Edwards should be explaining why they have opposed efforts to stop this abuse and why they continually ignore the devastating impacts of the federal payroll tax and our runaway unfunded Social Security liability that grows at the rate of $2.7 million a minute.”
About Dwight Drake:
Dwight Drake, author of Gutless Neglect: AmericaÂ’s Biggest Money Crisis, teaches law school courses in taxation and business planning. He has published extensively, been a popular seminar speaker, and practiced law for many years. More information on Mr. Drake is available at www. gutlessneglect. com. Mr. Drake can be reached for additional comment by calling 425-281-1493.
Author: Marie Olson, Enterprise Actions Tel: 425-222-4105 Fax: 425-222-6755
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