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John Edwards on Taxes and Budget
First, we need to get rid of Bush's tax cuts for rich people, which have distorted the tax system in America. I would use that money to pay for universal health care, to make sure everyone's covered. But the second problem is, we have a capital gains rate, 15%, that's significantly lower than the [earned income] tax rate. That's not right. There is a moral disconnect. We ought to honor work in this country, not just wealth.
2007 Democratic Primary Debate at Howard University Jun 28, 2007
"Three New Tax Breaks to Strengthen the Middle Class While the tax code favors wealth over work, regular families struggle to save and pay for necessities like child care. Only 27 percent of households within 20 years of retirement have adequate retirement savings. Child care costs more than rent for a family with two children. A single worker at the poverty line pays more than $800 in federal income and payroll taxes. [EPI, 2006; NACCRRA, 2006; CBPP, 2006] Edwards will overhaul the tax code with new tax breaks to strengthen the middle-class pillars of saving, work, and family: Savings: A new "Get Ahead" tax credit to match up to $500 a year in savings for families earning up to $75,000—that could be used for retirement, college education, buying a home, investing in a small business or during a financial or medical emergency, and new "Work Bonds" to offer additional targeted savings incentives for low-income families. The credit will be refundable to benefit low-income families and the size of the credit will be reduced for families with higher incomes. All families earning up to $75,000 will be eligible. Families: Expand the Child Care Credit to pay up to 50 percent of child and dependent care expenses up to $5,000 and make it partially refundable, and allow stay-at-home parents to help pay for child care for newborn infants. Work: Triple the Earned Income Tax Credit for single adults and cut the marriage penalty."
"WASHINGTON" -- Democratic presidential contender John Edwards says it is more important to invest in universal health care and lifting people out of poverty than to reduce the budget deficit. The 2004 vice presidential nominee said in an interview broadcast Sunday said "there is a tension" between the two directions, but he has made his choice. "If I were choosing now between which is more important, I think the investments are more important," he said on ABC's "This Week." Edwards' proposal, which includes tax cuts and a million housing vouchers for the poor, may place him at odds with Democrats in charge of the congressional spending committees. The incoming Senate and House Appropriations Committee chairmen, Sen. Robert Byrd of West Virginia and Rep. David Obey of Wisconsin, have announced a plan to fund most domestic agency accounts at 2006 levels. They envision some increases to avoid layoffs of federal employees
"Nothing better reflects the problems with our tax code than the lower tax rates for capital gains. As Warren Buffett says, there is something wrong when he pays taxes at a lower rate than his secretary. As president, Edwards will: Raise the tax rate on capital gains to 28 percent for the most fortunate taxpayers – taxing the investment income of the wealthiest Americans similarly to the wages of the middle class. Repeal the Bush tax cuts for the highest-income households and keep the tax on very large estates (above $4 million for couples). Declare war on offshore tax havens by cracking down on tax shelter promoters, cooperating with allies to fight tax havens, and closing the "tax gap" by improving IRS customer service, simplifying tax filing, auditing more large corporations and high-income individuals and requiring more third-party reporting. Close unfair loopholes like the tax breaks for hedge funds and private equity fund managers and unlimited executive pensions."; "In America today, families are working harder and struggling to get by, while powerful special interests in Washington are doing better than ever. Income inequality is at its greatest level since 1928. But the number of Washington lobbyists has tripled to 36,000 since 1996, more than 60 for every member of Congress. Our tax code is the perfect example of the Two Americas – one for the wealthiest Americans and Washington insiders, and the other for everyone else. John Edwards believes that wholesale changes are needed to put our economy and our tax system back in line with our values. [Pew, 2007; Saez, 2007; SOPR, 2006]"
Voted NO on phasing out death tax
Bill HR 8 ; vote number 2000-197 on Jul 14, 2000
Voted NO on eliminating marriage penalty
Bill HR.4810 ; vote number 2000-215 on Jul 18, 2000
"Edwards did say there needed to be reform with the Alternative Minimum Tax because it was putting too much pressure on middle class families when it was meant for the wealthy, who according to John, weren't paying their fair share.
What I would do as president is stop President Bush's tax cuts for the top two income tax brackets--people who make over $200,000 a year--close a whole group of corporate tax loopholes to generate revenue that will get us back on the path to fiscal responsibility. We also ought to actually raise the capital gains rate for those who earn over $300,000 a year, so that the rate is more in line with the income tax rate paid by people who work for a living.
Debate at Pace University in Lower Manhattan Sep 25, 2003
Nothing better reflects the problems with our tax code than the lower tax rates for capital gains. As Warren Buffett says, there is something wrong when he pays taxes at a lower rate than his secretary. As president, Edwards will: Raise the tax rate on capital gains to 28 percent for the most fortunate taxpayers -- taxing the investment income of the wealthiest Americans similarly to the wages of the middle class. Repeal the Bush tax cuts for the highest-income households and keep the tax on very large estates (above $4 million for couples). Declare war on offshore tax havens by cracking down on tax shelter promoters, cooperating with allies to fight tax havens, and closing the tax gap" by improving IRS customer service, simplifying tax filing, auditing more large corporations and high-income individuals and requiring more third-party reporting.