Tim Pawlenty is proposing “A Better Deal.” This is not to be confused with FDR’s “New Deal” nor Teddy Roosevelt’s “Square Deal.” The “Fair Deal” was the name given to Harry Truman’s domestic program.
My question is what makes Pawlenty’s ideas a better deal? Pawlenty wants to “grow the economy by 5%.” Who can argue with that objective? The problem is he wants to do this by helping the rich grow even richer.
He says he wants to create just two tax rates, 10% and 25%. A married couple earning above $100,000 would pay the higher rate. He implies, but does not say, he would eliminate all deductions. Would he eliminate business deductions as well as mortgage interest and property taxes? He does not say. Would he eliminate subsidies for agriculture, ethanol, oil drilling, and clean energy projects? He does not say.
He does say “we should eliminate all together the capital gains tax, interest income tax, dividends tax and the death tax.” I have a problem with this idea. The wealthy of our nation earn most of their income as the result of capital gains, and interest and dividend income. In other words, the rich who do not have a job would pay no taxes at all. The current inheritance tax impacts estates with a value at more than $5 million. According to the U.S. Census Bureau the median household net worth is $79,800 (most recent data is 2004). Once again this is a benefit to the very wealthy.
He believes that if any service can be provided by private enterprise the government should not be involved. That means no police, fire or child protective services. Actually he said if you can “Google” the service then the government shouldn’t be providing it. That means no more public schools.
He says we don’t need any bank regulations. The Glass-Steagall Act was passed in the 1930s and protected us until 1999 when Democrats and Republicans revoked the law. The consequence was the Great Recession.
He says no EPA. Smog in Los Angeles burned our eyes and obliterated our view of the mountains. Polluted rivers are still a problem but getting better.
You can read all of Pawlenty’s ideas at his web-site. You can read many of his thoughts at OnTheIssues. You will agree with some of his ideas. My opinion: Tim Pawlenty’s “A Better Deal” is a great deal for the rich.
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