Tim Johnson Votes For Mega-Millionaires Over His Constituents
Yesterday, H.R. 8, a bill co-sponsored by Tim Johnson to permanently repeal the estate tax, passed the house of representatives.
If enacted into law, H.R. 8 will hurt all Americans -- costing the federal government $290 billion over ten years, or about one percent of the budget.
Who will this bill help? Certainly not Johnson's constituents here in Central Illinois. For a married couple, the estate tax does not apply for estates less than $3 million, a number that's going up to $4 million next year and $7 million by 2009. Maybe that should be popular in Beverly Hills, but it does nothing for the residents of Johnson's district, who have a median household income of $38,583 and a median home value of $79,200.
Where is the News-Gazette? Its top story is about the State House's approval of red-light cameras, but it doesn't even mention Tim Johnson's co-sponsorship of a bill to give away massive amounts of his constitutents' money to the super-rich.
If enacted into law, H.R. 8 will hurt all Americans -- costing the federal government $290 billion over ten years, or about one percent of the budget.
Who will this bill help? Certainly not Johnson's constituents here in Central Illinois. For a married couple, the estate tax does not apply for estates less than $3 million, a number that's going up to $4 million next year and $7 million by 2009. Maybe that should be popular in Beverly Hills, but it does nothing for the residents of Johnson's district, who have a median household income of $38,583 and a median home value of $79,200.
Where is the News-Gazette? Its top story is about the State House's approval of red-light cameras, but it doesn't even mention Tim Johnson's co-sponsorship of a bill to give away massive amounts of his constitutents' money to the super-rich.
posted by Michael | 3:34 PM
8 Comments:
I appreciate that this blog is policy focused, but I will likely not agree with everything that is posted here.
If HR 8 is such a bad bill, why did dozens of democrats vote for it? Why did 16 Democrats co-sponsor it along with Tim?
The Farm Bureau supported this bill. Do you believe that a Congressman from the 15th Congressional District of Illinois should ignore farmers?
HR 8 was about helping farmers, ranchers, and small businesses and these same people already pay their fair share of income and other taxes. In fact, they pay too much...
This was a good vote for the 15th District.
If Johnson really equates the Farm Bureau with "farmers", then we really are in trouble!
The Farm Bureau is basically just the Sinn Fein of the agri-chemical industry -- they provide a sympathetic, politically acceptable face for pro-corporate policies that destroy small family farms and despoil our environment. This bill is the perfect example of how they work -- in the name of the small, hard-working family farmer, we give yet another huge windfall to the super-rich. This represents a loss of revenue to the federal government, which necessarily will be reflected in cuts in services, higher taxes, or larger deficits -- all of which are costs paid by all of us for the benefit of the wealthiest of Americans.
Family farmers will eventually wake up to this game. Too bad Mr. Johnson hasn't.
Would you go with a cap that exempted 99% of estates? That would be about $3.5 million.
Michael posted:
"If enacted into law, H.R. 8 will hurt all Americans -- costing the federal government $290 billion over ten years, or about one percent of the budget."
"a bill to give away massive amounts of his constitutents' money to the super-rich."
This money belongs to the people who earned or inherited it. It isn't the government's until the government confiscates it. The less government confiscation and spending the better, IMHO.
Why should death be considered a taxable event?
Luke,
We appreciate your readership even if we don't agree on all issues. However, this bill does not protect farmers in this district. How many family farms in this district are worth over $7 million (the combined exemption by 2009)? Few, if any. Moreover, even if there are a few such farms, the existing rules allow estate taxes to be deferred for up to 14 years to make sure that family farms are not lost to taxes.
This is bill is for the mega-wealthy, a category that includes vanishingly few citizens of this district (including its farmers).
(Second) Anonymous,
I'm not sure that I understand your point. If you consider all taxes confiscatory and improper, who will pay for what the government does? Do you really want the military to disband? How about the FBI? What will you cut? Whatever it is, it hasn't happened under the present administration, which turned a surplus under Clinton into a massive deficit. Since we have to have some taxes, the question is which ones. Do you really believe that taxing heirs of a share of their inheritance over $7 million is worse than, for example, taxing working people's income (lower income workers now pay a higher share of total income taxes than under Clinton)? If that's really your view, I'm afraid we'll just have to disagree....
(Second anonymous)
I don't consider all taxes improper and I agree that the current administration has cut taxes and spent more than the previous administration.
Presumably, this money was taxed when it was earned. Why tax it again? To punich the rich? To redistribute wealth?
I don't understand your point about lower income workers and income taxes. The upper 50% of taxpayers pay 96.5% of the income taxes. Many lower income workers pay no income taxes (or receive EITC). Perhaps you are referring to FICA, Medicare, etc. I agree with you on the impact of those taxes on the poor.
I just don't think that we should tax somebody 50% and more of their estate just because they die. The only people making money off of this are lawyers and accountants because the super-rich plan ahead so they don't have to pay estate taxes.
So, to cut to the chase: It is not fair that rich people are rich. True, but so what? Not going to change. The rich will always stay rich and have the pull to keep the rules in their favor (look at the new Bankruptcy law & corporate credit card companies!)
Anyway, I guess we'll just agree to disagree. You made some good points, but didn't change my mind. Capitalist society and all.
How about a change of subject to a sort of related topic - I think we both agree the current taxation system is broken. What do you think about the national sales tax proposal -- also referred to as the "Fair Tax"? I am intrigued but haven't made up my mind. Fear of the ever-present black market.
Thanks for the intelligent debate. I hate to see blog comment zones turn into childish namecalling extravaganzas. I am in Peoria, BTW. Love to read central Illinois blogs like Spoons, Peoria Pundit, etc.
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