Taxpayer bailout

Americans for Tax Reform's Grover Norquist has sent a request to the treasury for a $700 billion bailout.

I write today to formally request $700 billion from the TARP Capital Purchase Program. Since unionized auto companies, state and local governments, and certain credit card companies are applying, I thought I should, as well. Attached you will find the two-page application which I downloaded from www.treas.gov.

I am fully aware that some $125 billion has already been allocated as of October 29, 2008. However, given that the federal government has the full weight of the army, the FBI, etc. behind it, I am confident that you can re-appropriate this money from the likes of Wells Fargo (or their successor companies, if the current over-regulatory and over-taxing economic climate has caused them to go under).

I have a plan for this $700 billion which should be just what’s needed to get the American economy going. Since the money came from the taxpayers in the first place, I propose giving it back to them.

According to the Washington Times, the tax cuts include:

...cut the corporate income tax from 35 percent to 15 percent, eliminate the capital gains and dividends tax, cut the top personal income tax rate from 35% to a flat 15%, kill the death tax, and allow companies to fully-expense capital assets purchased the first year.

But the "no tax increase" pledge looks pretty in the frame in Wasserman's office

State senate candidate and current State Representative Sheldon Wasserman (D-really) is getting free advice from One Wisconsin Now (OWN)* regarding his pledge to Americans for Tax Reform never to vote for a single tax increase:

Before he keeps insisting we can’t raise any new taxes, Sheldon should read the new report by the U.S. Government Accountability Office showing that 57 of all domestic companies paid no federal income tax for at least one year in the period between 1998 and 2005 and 42 percent paid no tax for two full years. This despite $2.5 trillion in sales for these same companies weaseling out on their obligations to the rest of us.

Sheldon may think by opposing any and all tax increases he’s helping his constituents, but he simply has to accept that sometime taxes have to be increased. Sheldon may not want to raise any taxes ever, but that’s just not a formula that long-term is going to help us.

It's hard to imagine that OWN's Scot Ross is so vexed by the pledge Wasserman made. After all, Wasserman doesn't seem to be bothered by it at all. As Americans for Tax Reform points out:

Rep. Wasserman signed the Taxpayer Protection Pledge in 2002, but has failed honor the Pledge by sponsoring, supporting, or voting for at least three tax increases during his tenure in the State Assembly:

• In 2005, Rep. Wasserman sponsored a bill to increase the state’s cigarette and tobacco taxes by well over $300 million per year. The bill would have pushed the cigarette tax rate from $0.77 to $1.77 and increased the tax rate on chewing tobacco to 57%. (2005 AB 451, SB 211)

• In 2007, Rep. Wasserman voted in favor of advancing a $48 million tax increase on garbage collection. The bill would have increased the current tax by 233%. (2007 AB 76)

• Last October, Rep. Wasserman expressed willingness to break his Taxpayer Protection Pledge by supporting a tax hike included in the 2008-2009 Budget. (2007, WI Act 20)

'Despite his Pledge to taxpayers, Rep. Wasserman has repeatedly sought to increase taxes on Wisconsin consumers and families,' said Grover Norquist, president of Americans for Tax Reform. 'Not only that, but he has violated the very spirit of the Pledge by dismissing it in support of tax hikes.'

Perhaps One Wisconsin Now should calm down a bit considering Wasserman really is one of their OWN.

* The lefty tax-and-spend organization with the wonderfully fascist-sounding name.