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It is in the Congressional Record that I am the
individual who appeared before the House Ways and Means
Committee in 1972 and proposed the working spouse deduction. I argued that when a wife took employment outside
of the home, she incurred extra expenses in the production
of income. Since the tax code already allowed deductions of
that type to every business in America, my argument swayed
the Congress. The working spouse, or two-earner deduction,
became law under President Reagan. He repealed it a few
years later, allegedly for lack of support from NOW, the
National Organization of Women. They reportedly objected to
women being married to get the deduction.
I also proposed to Chairman Wilbur
Mills that working families not covered by pension plans be
given some form of tax sheltered savings for retirement.
Sixteen months later President Gerald Ford signed the ERISA
law, which created IRA’s, or Individual Retirement Accounts.
Now, thirty years later, IRA’s are helping millions of
Americans have more secured finances in life and in
retirement.
Those actions are part of my very pro
working family record.
If not to enrich those already rich, why abolish the
Corporate Income Tax?
Because it has done more harm than good to the nation and
the average working family.
My wife and I bought our first house,
brand new, for under $10,000, in 1953. The interest rate was
six percent. Two years later, after enlarging it, we
refinanced at 4-˝%.
From then until now, housing prices
have doubled, and doubled, and redoubled seemingly without
end. The cause: inflation fueled by the combination of a
high corporate income tax and nearly unlimited tax
deductions for interest on borrowed money. We increased the
national money supply, and fired inflation for half a
century.
Five large interest groups in our
country are hurt by this.
1.
Every working person trying to get ahead, or save for
a house, finds that their savings are taxed at higher rates
than their earnings from wages.
2.
Every retired American has been stressed by incessant
price increases driven by inflation since the end of WWII
and the start of the Korean War in 1950.
3.
Every business executive wanting to expand job
opportunities for Americans has been handicapped by the
Federal Corporate Income Tax.
4.
Every person who is experiencing unemployment due to
the loss of jobs in America is being undermined by the tax
code that favors imports over domestically produced autos,
TV’s, and manufactured items of every kind.
5.
Every person supporting the homeless could see an end
to homelessness if we lower the cost of housing by lowering
the cost of money itself.
The Federal Corporate Income Tax was 2
% in 1916. It crept up over the years by only a few points.
When Japan attacked Pearl Harbor in 1941, President
Roosevelt raised it to 42%. When the Korean War started in
1950, President Truman raised it to 52%. Presidents
Kennedy, Reagan, Clinton and Bush each lowered it
incrementally.
President Reagan almost came to grasp
the mathematical reality that the corporate income tax
deductions were driving the budget deficits higher. He even
coined the phrase, ‘structural deficit,’ but he missed
seeing the solution.
My insight into this came about because
of my weird career path, from cost analyst, to time study
work, to hired inventor, to insurance salesman, to Better
Business Bureau representative, to salesman of tax and
business law and computer prepared income tax return service
to the nations top bankers, CPA’s, and tax lawyers.
If anyone can get this message into the
hands of key officials in the Bush administration, or the
Congress, I am willing to share my knowledge of how, where,
when, who, what, and why this entire process began, and how
to reverse it.
Please, share this with as many people
as you know. Let us see if there truly are only six degrees
of separation from your breakfast table to the desk of
President Bush. By forwarding this to all of your friends,
you may be the person who changes the world for the better.
Happy New Year, 2005
Poppa Kelly
To learn more about Poppa Kelly
please review his
initial article
- Thank you!
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