Sirotablog

David Sirota's online magazine of news & commentary
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Thursday, October 27, 2005

Senators Gobbledy-Gook and Foot-in-Mouth (D-Incoherent)

Here's something I don't understand. When we've got good ideas, why do we package them in obtuse language?

In the face of record energy profits, Senator Clinton is proposing a program that would raise $20 billion by taxing excess oil profits, except she is too scared to say the word tax. So instead we are charging a "fee" and the whole thing is couched in ridiculous scared-of-holding-corporations-accountable language. Not many Americans want to nationalize the oil industry and many Americans are happy that these sector is profitable. But a windfall profits tax is popular, in part because people realize that the oil companies are benefitting here through a particular mix of bizarre market conditions and gouging. In bad times, the government bails out corporations, shouldn't it reap some of the benefits of good times? Most Americans think so.

Then today, Senator Ron Wyden rolls out a progressive tax plan to steer the debate in the upcoming weeks. Unfortunately, it seems that rhetorically we've already ceded the debate. Wyden calls his plan the "Fair Flat Tax," specifically invoking a conservative frame.

And get this, even though 54% of Americans believe the current tax system is unfair, only 39% say they prefer a flat tax to our system. Now, Steve Forbes spends a lot of time talking about how great a flat tax is. The truth is, to gain all of the benefits of a flat tax system, no personal allowance can be allowed. That's something not even the most reactionary Americans are proposing. Otherwise, most of the benefits can be gained from progressive simplification of the tax code, which is what Wyden is really doing.

We don't need a flat tax. Americans don't want a flat tax. And promoting flat taxes is just another example of us digging a whole.

But, hey, maybe Clinton and Wyden can get together and promote a new "Fair Flat Fee" system to raise the revenue we need to keep America great.

--Matt Singer

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