“ In the 1950s, corporate taxes provided more than 27 percent of federal revenues, but by the 1990s this proportion had declined to ten percent. The burden has shifted to individuals. But not all individuals - if you're rich enough, you might not have to pay any taxes at all. Increasingly, the rich are using off-shore channels to hide their money, at the same time that corporations use partnerships, transfer-pricing and other gimmicks. The IRS doesn't have the resources to challenge this. One IRS lawyer admitted, "Why do you think we go after the little guys? They can't fight back." Lewis, Charles and Allison, Bill and the Center for Public Integrity. The Cheating of America: How Tax Avoidance and Evasion by the Super Rich Are Costing the Country Billions -- and What You Can Do About It. New York: William Morrow (HarperCollins), 2001. 302 pages.
Americans and Washingtonians are paying the highest taxes in the nation's history. Americans spend about one third of the work year just to pay government and bureaucrats. Moreover, the current complex tax system in Washington contains several fiscal inequities (see below). However, the central issue is not the "scandal" that the State budget has increased by 30 percent in 4 years, (as this expense may have been justified) or that the projected budget shortfall is 3.2 billion dollars, but rests on fiscal justice, fiscal intelligence, and enough creative imagination thanks to which the State can generate more resources and funds so that the People's basic needs can be met, including but not limited to additional leisure family time and less tax-work enslavement. Outside of the recklessness tax, and notwithstanding the corporate world, no individual should produce a "tithe" of more than 10 percent of their resources for the Public Good.
MEASURE 1: PROGRESSIVE FLEXIBILITY WITH EXCISE AND PROPERTY TAX. Within the framework of a balanced budget then, Part One of the candidate’s fiscal Tax reform plan will make the fiscal structure more flexible and progressive via the decreasing of excise taxes for necessary consumption goods (including, but not limited to gas prices, which, in Washington State are more expensive than in most of the other states of the Union), the decreasing of property tax with a “home-exemption” for the first 150,000 dollars and a higher tax rebate for low-wage as well as for the benefit of fixed income retired Washingtonians. The Mid-income would also benefit from a home exemption, with a sliding scale in between 50,000 to 120,000 dollars, to be determined via a task force and Legislation work. Abrupt hikes of assessment property values to justify the increasing of the property taxes while the tax value hike is not grounded to the fair market flux will be deterred.
MEASURE 2: THE QUALITY OF PUBLIC EDUCATION SHOULD NOT BE A FUNCTION OF PROPERTY TAXES. Moreover, property tax should not pay for public education, as this leads to the unconstitutional result that wealthy areas benefit from wealthy schools and poorer zones from poorer schools, thereby mis-respecting the constitutional principle known as the "equal application of the laws". Public education, like access to justice and health should be paid for by those who destroy justice, health and education, via reckless and pollution taxes and exceptionally via a small tax on securities (speculation tax) and very exceptionally via a flat personal tax of gross income to replace school levies on property.
MEASURE 3: RECKLESSNESS TAXES. Tax reform Part Two will focus on the increasing of taxes and penalty fees on that which destroys life and endangers social peace : e.g. tobacco, pollution, different nefarious chemicals, environmental and natural resources degradation, processed and un-healthy fast foods that lead to chronic diseases and stress, general recklessness and negligence that significantly destroys health, the environment and public order. The Action Plan's number one Goal is genuine Health for all. As health is our most precious and sacred resource, the State’s taxation policy ought to reflect this value. In this perspective, I would propose to the State Legislature the following measures:
MEASURE 4: TOBACCO TAX INCREASE. A significant increase of cigarette taxes for the first year and an even more significant tobacco tax hike in the second and last year of Washington State's cigarette legality. This tax money will help me to guarantee equal holistic health access for all and cut down Washington State's chronic diseases by 50 percent by 2012. If elected, by 2011, industrial tobacco will no longer be legal. There are no credible arguments that justify industrial additive-rich tobacco's legality. Allowing this "criminal poison" on the market is not honorable. Future generations could even criminally accuse those who allowed industrial tobacco to be legal. The legal argument of being an accomplice to the crime of mass poisoning is not moot. Meanwhile, via civil law, we can have a friendly settlement, request that the tobacco manufacturers repair via high taxes the damages they have willingly perpetrated upon the People and the common good (See the candidate's tobacco book on this and the tobacco category above), assist them to reconvert to a more useful industry and help them avoid massive unemployment of their employees. The fact that former Attorney General Christine Grégoire was successful in a collective suit against big tobacco is fortunate and meritorious. But the issue remains that Big Tobacco is still mass poisoning Americans, doing all it can market-wise to hook 3000 new young Americans to these delayed death bombs. The engine of this tobacco thrust is associated to the pressure from their share-holders in the stock market system. That is how the capitalist system works. Thus, the definitive solution to this expensive habit is criminal law. Thenceforth, public health and the State Treasury will be much healthier.
MEASURE 5: A SMALL TAX ON SECURITIES FOR TWO YEARS AND A HALF YEARS: For the first two years of my proposed governorship, I would propose to the State Legislature the enactment of a small tax on securities (i.e., State mini tax of 2.5% on the purchase of stocks, bonds, securities & currency). Taxing financial speculation is not "regressive", and may be, necessary for the sustainability infrastructure, the traffic decongestion, the modernization of the transportation system and the eco-development phase of the proposed Plan of Action. But as Washingtonian's health and economy will meaningfully improve with my Action Plan, the State will spend much less. Moreover, over 90 percent of currency goes into financial speculation while less than 10 percent (some experts say 2 percent) goes to feed the real economy. Yet, most of the power elite heavily taxes that 2 percent and not the 98 percent of financial speculation which benefits their financial power exponentially. This abnormality would need to change.
MEASURE 6: HIGH TAXES ON WHAT CAUSES CHRONIC DISEASES: On all of what costs our Collectivity multiple billions of dollars in terms of health care and productivity blow-backs (cholesterol, saturated fat and hormone-antiobiotic-additives-laden meats, trans fat (e.g. hydrogenated oils), white refined sugar, the soda pop industries) i would seek democratic kindred spirit legislators to draft a Bill that would substantially increase the taxation of these chronic disease-causing processed "foods" manufacturers. A democratic debate about all of this with both the People and the State Legislature would be useful and pedagogical.
MEASURE 7: NO TO DOUBLE TAXATION BURDEN TO SMALL BUSINESSES AND YES TO TAX RELIEF AND TAX CREDIT TO START UP COMPANIES AND SMALL BUSINESS. In order to encourage small Businesses and Start Up Companies, these legal entities should benefit from tax relief, eliminate capital gains taxes on start-up and small businesses to encourage innovation and job creation. Providing a $500 “Making Work Pay” tax credit to most workers in Washington State would be a possibility to discuss. Self-employed small business owners pay both the employee and the employer side of the payroll tax. This double taxation burden is cumbersome and should changed.
MEASURE 8: STATE CARBON TAX WITH THE GOAL OF 80 PERCENT EMISSIONS BELOW 1990 LEVELS BY 2050: On the other hand, a State carbon tax is needed. Our neighbor British Colombia in Canada is reaping success with this tax. (CLICK HERE FOR THE EVIDENCE). In addition to protecting the environment, health and future generations, we would also increase the consciousness of civic duties. We need to set this tax to annual benchmarks to bring, with the expansion of solar and other renewable sources of energy, US emissions to at least 80 (preferably 90) percent below 1990 levels by 2050. B.C. Premier Campbell and his Climate Action Team set the 2020 goal of reducing by one third its emissions. And B.C. is succeeding. IF they can do it, we can too. But we need to begin soon. An initial price of $50 per ton of carbon dioxide equivalent emissions would harness, for the Nation, $300 billion annually and for Washington State, over 6 billion dollars, money that would help to finance green buildings and alternative energy schemes, contribute in providing the State with at least 100,000 new green collar jobs (in efficiency retrofits, cogeneration, geothermal, solar energy generation, and green grid enhancements, eco-housing (straw bale, cordwood, adobe, bamboo, logs etc.) in a few years.
MEASURE 9: NO TO A STATE INCOME TAX, NO TO DEATH TAXES, NO TO INTERNET TAXES OR TO ANY REGRESSIVE TAXES THAT WOULD HURT THE PEOPLE’S HEALTH AND BASIC NEEDS BUDGET. In order to assuage the People's fear of high taxes, the candidate affirms that he is making the commitment to veto any State income tax scheme that the State Legislature may be preparing and all regressive taxes that will damage the People's health and basic needs budget. The restoration of fairness to the tax code is desirable, that which would provide tens of thousands of workers the tax relief they deserve to pay higher energy, food, housing, all precipitated by the Bush tax ideology, those excessive tax breaks for the very wealthy and in favor of big business, including, but not limited to the regressive payroll tax system. Tax fairness also means fewer discriminatory loopholes for the very wealthy and more fiscal justice for the others, including, but not limited to repealing and-or amending the dusty law that exempts from the State's sales tax Washingtonians who have an out of state driver's license and claim to be legally residing in an out of state address. But are not. Taxes that are paid by married couples versus single individuals should be more equitable. Special interests corporate loopholes need to be straightened out. Especially when there are corporate abuses that hurt Society.
MEASURE 10: A ONE PERCENT CUT OF PUBLIC EXPENSES IN MATTERS THAT DO NOT AFFECT HOLISTIC HEALTH, RELEVANT EDUCATION, DECENT CLOTHING, QUALITY FOOD, CLEAN WATER AND WARM SHELTERS (THE SIX BASIC NEEDS OF THE POPULATION). To decrease the 3.2 billion dollars projected deficit, an across the board one percent public expenditure decrease as Governor Grégoire recommends sounds reasonable. Moreover, this measure would decrease red tape and increase the liberation of creative energies.
MEASURE 11: BUDGET INCREASE VIA TOLL FEES. If the State Treasury needed more revenue, there would be the option to request toll fees on the Alaskan Way viaduct, the Highway 520 floating bridge and other mega-projects.
MEASURE 12: BUDGET FUNDS VIA THE STATE’S CLASS ACTION SUITS: The State could also via the Attorney General start class action suits against reckless corporations and win large awards with which to pay the People’s basic needs expenses. Reaping large damage awards via the People's court verdicts and for the People's benefit is a legitimate way to increase the State’s cash flow while at the same time having an efficient policy which would deter reckless behavior. The targets are numerous. Misleading pharmaceutical products which maim and destroy hundreds of thousands of Americans each year, disease-producing industrial fast foods and death-generating medical dogmas that have cost the State and the People's health billions of dollars and millions of lives. Until the measure to implement the "precautionary principle" becomes law, the government has the sacred duty to vindicate the People's constitutional right to remain free from civilization-caused chronic diseases and stress via deterring class action suits.
CONCLUSION
To conclude on the candidate’s Action Plan's fiscal and public finance policy, there will be fewer regressive taxes which harm our State Community's capacity to maintain a decent "basic needs" budget. On the other hand, there will be more public services and happier & healthier Washingtonians, thanks to the Action Plan's innovative schemes, including but not limited to the Action Plan’s eco-development strategy (see below) which will produce multiple billions of extra dollars for the State Treasury. However, what will skyrocket with the Action Plan's enfoldment will be higher recklessness taxes and more corporate and bank accountability against those who significantly harm human and animal health, our livelihood and our State's natural resources and Environment. In brief, the candidate's position is clear and simple: Those who destroy our resources, our health, our future generations will be taxed in proportion to the damage done, even if these new taxpayers are the wealthiest of the wealthy and are Mr Bush’s friends.They must be liable for most of the "blow-backs" that ensued from the Bush mis-management dark era. The theory that the rich must be tax- free in order to invest in R & D for the benefit of everyone else is a smoke-screen allegation to justify accumulating wealth and privileges to the detriment of the working class, families, youth, the environment and the Nation. The recent bail-out of Wall Street and the hundreds of millions of dollars the bankers and the insurance employers like AIG grant to themselves as “bonuses” as they simultaneously request more bail out money from Mr Bush corroborates even more the incoherence of this fiscal theorem.
"Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.". (Click here for more)
Likewise with Mr Paulson, Bush’s Secretary of the US Treasury: In September 2008, the Fed, in an unprecedented move, lent $85 billion to the American International Group (AIG), the nation’s largest insurance company. Few voices in Congress dared to challenge Treasury Secretary Paulson's conflict of interest during the recent financial crisis. An internet Wikipedia search shows that:
“Paulson was Staff Assistant to the Assistant Secretary of Defense at the Pentagon from 1970 to 1972… He joined Goldman Sachs in 1974… He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of Investment Banking, then, Chief Operating Officer from December 1994 to June 1998; eventually succeeding Jon Corzine (now Governor of New Jersey) as its chief executive. His compensation package, according to reports, was US $37 million in 2005, and US $16.4 million projected for 2006. His net worth has been estimated at over US $700 million."
The unfolding financial crisis has been arriving in wave after destructive wave. People have lost their homes, their jobs, their savings, their health, their marriages, their children, their hope while the wealthy like Mr Paulson and Mr Bush and their republican corporate allies are getting wealthier and wealthier, paying less and less taxes and getting bailed out with American tax funds that come from the modest working man and woman. With the unregulated credit default swaps posing enormous liabilities to the financial institutions that dwarf the global economy, Paulson’s allegiances to Goldman Sachs and AIG will help determine which institutions will fail or escape, survive, and profit in the current turmoil. (http://www.nytimes.com/2008/09/27/business/27charts.html).
Henry Paulson asked for and received over $700 billion in taxpayer money with little or no oversight as to who will actually get the money. When our corporate wealthy will economically perform for the genuine good of the People (i.e. producing air compressor cars for under 5 thousands dollars each, as the French-India tata manufacturer are working on, or Microsoft producing a computer operating system that frees the People from the chains of media manipulation , or Google who frees the People from the enslavement of ignorance via his encyclopedic and instantaneous search engine), then they should be less taxed and praised.
Hence, with a less damaged Society, the State will not need as many taxes, as there will be less to repair. Public Health and self enlightened sufficiency (including but not limited to bartering structures, solidarity net working and eco development schemes) will rise and part of the Government will be able to go on a long stress-free vacation while the other part will be able to function smoothly on a small maintenance corporate and speculative (finance) flat tax. C’est logique.
Moreover, because one of seven of our Federal Reserve “In God we Trust” paper money dollars goes into the sickness industries (e.g. the mainstream health-care and public health system), thanks to the Action Plan's public health measures, in four years, health-care cost would drop by at least half. This will allow me, if elected, to cut the State's Bureaucracy in a significant way while re-investing part of the saved money to help the public servants reconvert to a sustainability economy. Furthermore, once the Action Plan's Statue of civic responsibility (the one which may face the French gifted Statue of Liberty in New York) will be built (See the ultra), tourism in Seattle will significantly increase, that which will also fill up the State's Treasury vaults with "rainy day" funds, which will be used to ward off possible natural catastrophes (earthquakes, meteorites, tsunamis, trans-frontier epidemics) and not so natural Bush-like social and international catastrophes.