Weatherford Democrat


December 3, 2012

COLUMN: Columnist misguided in his tax facts

— In his guest column of Friday, Nov. 23, (“GOP misguided with Romney plan”), Mr. Tilly indulges in a number of assertions unsupported by the facts.

The tax plan put forward by Mr. Romney was comprised of the following elements:

Reduce statutory income tax rates 20 percent, from 10, 15, 25, 28, 33, and 35 percent to 8, 12, 20, 22.4, and 28 percent.

Reduce the corporate tax rate from 35 percent to 25 percent.

Repeal the Alternative Minimum Tax for individuals and corporations.

Repeal the estate tax.

Eliminate, curtail, and reform numerous special provisions in the tax code — the credits, deductions and exclusions that cause complexity, compliance problems, distortions and inefficiencies.

The principal difference between Mr. Romney’s plan and that put forward by the president’s bipartisan Simpson-Bowles Commission is the treatment of capital gains and dividends.

Mr. Tilly’s declaration that tax deductions for charitable donations, home loan interest and health insurance were threatened by Mr. Romney’s plan is unsupportable by any reading of same.

That corporations at times have no tax liabilities, as gross profit is offset by deductions and exemptions incorporated into the tax code, is an example of the complexity, distortions, and inefficiencies of the current tax code — something Mr. Romney’s plan would have addressed. The plan put forward by the Simpson-Bowles Commission would also, in some measure, have addressed this — it is none of Mr. Romney’s doing that the president has completely ignored the commission and its conclusions.

Contrary to Mr. Tilly’s assertion, the current tax code does not permit “corporations and individuals to make huge profits in this country and then take those profits overseas to avoid paying into the system that enabled them to accumulate their great wealth.” Corporations often keep profit earned from foreign operations in the country in which it was earned — this process, authorized by law, allows these corporations to delay paying what is the developed world’s highest corporate tax rate. Profit earned by corporations in the United States is subject to taxation at the rate required by law.  

As for Mr. Tilly’s inability to comprehend the rationale behind the tax treatment afforded earned income versus investment income there is both a lack of space in your paper and a lack of interest on my part to remedy the deficiencies of his understanding.  

That Mr. Tilly has, along with this president, decided those earning $200,000 per year are to be considered “millionaires” and “billionaires” is, though obviously and laughably false, unfortunately unsurprising. Mr. Tilly has oft demonstrated a preference for Democratic Party campaign rhetoric no matter how at odds with reality it may be. Perhaps he should keep in mind that “trickle down economic theory” is a fallacy — manufactured and propagated in large part by the Democrat Party — and “[n]o such theory can be found in even the most voluminous and learned books on the history of economics.”

Mr. Tilly rails against the current tax code, yet supported the candidate who has been perfectly clear in his desire to make that code even more complex, incomprehensible, and inequitable.

In his guest column of Sunday, Nov. 25 (“Republicans should own up to the problems they’ve caused in the nation”), Mr. Tilly continues his indulgence in unsupported and unsupportable assertions.

There were no “eight years of unregulated slash and burn capitalism.” Regulation during the Bush adminstration grew substantially, the Code of Federal Regulations growing by 4,500 pages from 2001 to 2007. The cause of the economic “free fall” was the disruption of the real estate market caused by the Community Reinvestment Act — originally enacted in the Carter administration, re-enacted and extended in the Clinton administration — and the unrestrained financial practices of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The attempts of the Bush administration to increase oversight of these government-sponsored enterprises were repeatedly rebuffed by the Democrats in Congress.

The supposed “disasters” of Iraq and Afghanistan are in large part attributable to the current president: it is the current administration that failed to negotiate a status of forces agreement in Iraq to allow the U.S. a presence in the region; it is the current administration that established rules of engagement in Afghanistan putting our military at risk, and it is the current administration that has refused to delineate any strategy in Afghanistan beyond leaving. To refresh Mr. Tilly’s memory, the U.S. had been at war with Iraq since January, 1991 — the Iraqi government demonstrated over a period of 12 years that it had no intention of complying with the terms of the cease-fire. And in case he’s forgotten, the U.S. was attacked in 2001 by terrorists being sheltered by the Taliban government of Afghanistan.

In his attempt to lay all the ills of the world at the Republican doorstep Mr. Tilly conveniently ignores certain hard truths. During his eight years as president, Bush presided over an increase in the national debt of $4.9 trillion; during his four years as president, Obama has presided over an increase in the national debt of $5.6 trillion and, if the current trajectory is maintained, will preside over the addition of another $6.6 trillion by 2016.   

The annual deficit has tripled under the Obama administration, exceeding $1 trillion each year of the past four years. The federal government is spending $10 billion each and every day of the year, 43 percent of which is borrowed. The federal government is currently $16.1 trillion in debt, an amount greater than the gross domestic product of the U.S. Unemployment and under-employment are at record or near-record levels, with fewer people in the workforce than has been seen in half a century or more. Practically every “investment” of taxpayer dollars by this administration has failed, and those few that have not will take decades to break even (if ever). With all of this, this president and his party have no plan for, or intention of, reducing spending in any fashion. It is the Democrat majority in the U.S. Senate that for four years has refused to make any effort to pass a budget.

The increase in spending during the Bush administration was horrendous; what word then should be used to describe the massive acceleration in spending during the Obama administration?    

Mr. Tilly may see going deeper into bankruptcy as a “recovery” — and the attempts to forestall that bankruptcy as “obstructionism” — but there are few with any knowledge or perception who would agree.

Beyond Mr. Tilly’s ceaseless attempts to blame Republicans and the Republican Party for the manifest and manifold failures of this administration, the only defect of his compositions is the want of truth and common sense.


‘The Romney Tax Plan: Not a Tax Hike on the Middle Class,” Alex Brill, Oct. 7, 2012, The American (

“U.S. Corporate Tax Rate To Be Highest In The Developed World,” Patrick Temple-West and Kim Dixon, March 20, 2012, The Huffington Post (

“The ‘Trickle Down’ Economics Straw Man,” Thomas Sowell, Sept. 27, 2001, Capitalism Magazine (

“Red Tape Rising: Regulatory Trends in the Bush Years,” James L. Gattuso, March 25, 2008, The Heritage Foundation (

“The Government Did It,” Yaron Brook, July 18, 2008, Forbes (

William Picou is a resident of Weatherford.

Text Only
  • tiscione, lou.jpg TISCIONE: Do the right thing!

    We seem to be constantly bombarded with complicated situations that call for making an informed decision. Of course, generally, all would want to do the right thing.

    August 1, 2014 1 Photo

  • 0912 one bday wm j kelly 2013 mug.jpg KELLY: What do you think?

    American Profile Magazine pictured Big Tex in its feature about state fairs with the appropriate caption: “Big Tex towers over visitors to the Texas State Fair.” The article also wrote about the many famous wooden roller coasters including the “Classic” wood roller coaster.

    July 31, 2014 1 Photo

  • LETTERS TO THE EDITOR: I have been corrected

    I was complaining about President Obama making promises that he has not kept, such as taxes will not go up one dime or health care will go down about $2,500 per year for a family of four. He said he would cut the deficit in half by the end of his first term. He said he would have an immigration plan in place. What he really meant was that if Congress would allow it, we would have open borders.

    July 29, 2014

  • LETTERS TO THE EDITOR: Concern for your pocketbooks

    Dear Editor: My message today is to Democrats out in Parker County and the middle class and moderate-income Republicans in towns and rural areas. 

    July 27, 2014

  • larry jones cropped:color NOW HEAR THIS: Taking care of your tools

    For much of my life I’ve heard the saying, “Take care of your tools, and your tools will take care of you.”  In our modern “throw away world” this has become much less important than it used to be, but down on the “pore farm,” tools still enjoy a prominent position in my daily life.

    July 26, 2014 1 Photo

  • PASTOR POPHIN: The greatest joy of all: Jesus

    The first part of this week was a joyous one for me. I took 10 youth to Lake Mineral Wells State Park for three days of day camping. Camp Adventure was the name of the camp. We discovered the joy of the One who created us: Jesus. I am sitting at my desk on the day after the camp writing this article. I am overjoyed by the events of the week, and yet I am physically exhausted. The Lord moved powerfully among our youth.

    July 26, 2014

  • LETTERS TO THE EDITOR: Now is the time for all good men...

    When man’s greed, desire for riches, power and control of our nation become greater than their love of humanity and our country, by constantly fomenting discord and hate among the citizens, warmongering and constantly talking of wars against other nations - it is putting political ideology before the welfare of citizens and country. It is time for We the People to take a good look at these men involved - no matter their status in our nation, we call the United States of America and decide whether or not they deserve the privilege and sanctuary of our nation.

    July 25, 2014

  • tiscione, lou.jpg TISCIONE: Finding a church

    God commands His people to “keep holy the Sabbath Day.” The “Sabbath Day” was changed by the apostolic church to the first day, Sunday. The church refers to every Sunday as the Lord’s Day. Each Lord’s Day is a celebration of the resurrection of Jesus Christ. Therefore, a professing Christian will seek to find a local church in which to invest in the kingdom and worship the King! 

    July 25, 2014 1 Photo

  • John Paul Carter-color.jpg NOTES FROM THE JOURNEY: What’s your current address?

    Shortly after we moved to Weatherford 19 years ago, the old post office (today’s Court Building) that was literally bursting at the seams was replaced by a new, larger facility – our present mail center that sometimes seems outgrown as we stand in line to buy stamps or mail a package.  

    July 24, 2014 1 Photo

  • LETTERS TO THE EDITOR: Good company, better service

    We would like to thank Devin’s Handyman Service, Gary Boase, David Schramm and James Reed for the wonderful job they did repainting our front fence, front porch, back porch, patio and deck. Everything looks new and makes such a difference in our home.

    July 23, 2014

Must Read
Top News
House Ads
AP Video
Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction Malaysian PM: Stop Fighting in Ukraine Cantor Warns of Instability, Terror in Farewell Ravens' Ray Rice: 'I Made a Huge Mistake' Florida Panther Rebound Upsets Ranchers Small Plane Crash in San Diego Parking Lot Busy Franco's Not Afraid of Overexposure Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN