Edwards Offers an Economic Plan & Tax Reform

Edwards Offers an Economic Plan & Tax Reform updated

graphic via Huffington Post

Talk about timing.

While Obama takes out after Clinton, Edwards
offers policy reform. On a day where the Dow plummeted
and the housing market continued quaking, Edwards put forth some serious policy ideas on
what could change the economic future for us all; beyond his support for unions, that is.

As an aside, it’s important to point out that while the fat cats get fatter,
the middle class is feeling the pain and has been for years. The result is
that whatever Democrat wins in 2008, which will happen if we do our work, we
will inherit an economic nightmare from Bush, not unlike what Bill Clinton inherited
after twelve years of Reagonomics; only this one will be on steroids, because it’s compounded by a long war and a military infrastructure that needs a serious cash infusion.

On my radio show, I’ve been one of the few people who have highlighted the
importance of Democrats drawing out the financial disaster waiting for us, with Bonddad
a regular guest. His post today alleges Bush’s legacy as the “lowest
rate of job creation in the last 40 years.” The ramifications of Bush’s economic policies, if you can call them that, will be handed over to the next president, a Democrat, who will have to fix what could include the “r” word.

Edwards jumping into this reality is important.

Edwards will help regular families save and get ahead by: Creating a Get Ahead Credit, which will expand the Savers Credit to match savings up to $500 a year, providing as much as an additional dollar for every dollar of savings. Boosting low-income families’ savings with work bonds, which will supplement the Earned Income Tax Credit to match the savings of low-income workers up to $500 per year. Exempting from taxes each family’s first $250 in interest, capital gains, and dividends. Allowing families to deposit part or all of their child tax credit into a tax-free savings account. Expanding the Child and Dependent Care Tax Credit to pay up to 50 percent of child care expenses up to $5,000 and make it partially refundable to benefit low-income working families. Tripling the EITC for 4 million adults without children and cutting the marriage penalty for 3 million families. In the past six years, President Bush has cut taxes on capital gains and dividends and started to eliminate taxes on inheritances completely. As a result of his regressive tax policies, the federal tax burden has been pushed onto the backs of working Americans. As president, Edwards will reverse President Bush’s “War on Work” by: - Raising the top tax rate on long-term capital gains to 28 percent, the same rate signed into law by President Reagan. The 28 percent rate will ensure that high-income investors will pay taxes on their investment income at a similar rate to what regular families pay on their earned income. – Repealing the Bush tax cuts for the most fortunate families, who make more than $200,000 a year. – Ending the abuse of foreign tax havens. – Closing the hedge fund and private equity loopholes. – Capping executive pensions.

Edwards’ tax reform
ideas are also worth a look.

UPDATE: Jonathan Singer & Chris Bowers weigh in on new Iowa polls: Edwards in the lead.