A Golden Opportunity For Democrats

One of (perhaps) the last bastions of Democracy is the fact that every U.S. citizen age 18 and over has the right to vote. In that respect, the billionaire is no more entitled to cast a ballot than a homeless person on welfare.

I have been a CPA in Canada and the U.S. for almost 58 years, most of them as a Canadian resident. I was born in NYC and have dual citizenship. I think I am more qualified than most to comment on  the political and tax structures of both countries.

In Canada, some political parties often disseminate a ‘Blue Book”  before a Federal election which outlines their  platforms and policies should they gain or retain control of the next Parliament.

It is now time for the Democratic Party to take the same path and the Republicans have provided  a golden opportunity. Much of the platform is obvious.

1. Limit business low-rate taxation to private businesses only and NOT to public corporations and their subsidiaries.( The potential savings are immense.)
2. Reinstate opportunities to  pause or reduce payments on student loans.
3. Exempt family-owned farms from death taxes if they are passed on to family members.

( According to the U.S. Department of Agriculture, less than 1% of farm transfers on death incur estate tax.) ( Research note to self: Is there still a USDA, or has Trump eliminated it?)

4. Delete the new  elitist provision allowing a tax deduction for contributions to private schools.
5. On the other hand, Democrats would be wise to retain the $6,000 deduction now granted to seniors to offset taxable  social security income on their Federal income tax returns.

 Someone in the Trump organization obviously does have a good grasp on how to hoodwink the general public. The parts of the new law that take effect immediately have definitely been directed to get votes from the general public. They should be retained by the Democrats, although perhaps with modifications as I suggested above, AND made permanent. They are presently set to expire in 2028 when Trump (regretfully???)leaves the stage.  It is likely that his chosen successor will promise to make these changes permanent. The Democrats  can trump (sorry) this plan by promising to make the changes permanent two years earlier IF they  can take control of Congress in 2026 .

Here are some additional recommendations:

1. The new deduction for up to $25,000 of tip income is reasonable. It should be noted that tip income would still be subject to Social Security tax and State income tax. Also, if someone claims anything close to $25,000, while, in the past,  they only reported total tips of $5,000 a year while working for the same employer, well ,they’d have some ‘splaining to do. Then again, there are probably not enough IRS agents left to investigate.
2. A deduction of up to $12,500 a year for overtime pay is probably reasonable, although if a business pays this amount to, say, five employees , the business might steer clear of adding a new hire which would be bad for employment statistics.
3. The new law provides a deduction of  interest of up to $10,000 for new (American made) cars purchased after December 31,2024. Assuming an interest rate of 6.5% ,

An individual would have to borrow around $150,000 to qualify for a full claim. More pork for the top 10%! All those darn lawyers in Congress and not enough accountants.

4. The law now provides a Federal tax-free gift of $1,000 for any U.S. citizens born between 2025 and 2028. How many upper-income prospective parents will make a decision to have a child in exchange for $1,000? For struggling families, this one is a pure bribe that should be repealed.

The same cunning behavior that engineered the above “gifts“ limited these changes until 2028, when they could become permanent if the Republicans win the Presidency. As I mentioned, the Republicans can be upstaged by two years if control of congress changes.

Now onto the flip side of the coin.

There are many  new provisions that adversely impinge on Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Working to retain eligibility may not be practical, even if a claimant is not mentally or physically handicapped. Planned Parenthood clinics have been defunded, as has public radio. The rules are structured to make it more difficult and expensive for people to purchase medical insurance.

Already, there have been many articles  written regarding these unfair changes that impinge almost exclusively on  the less affluent members of our society. The impact  and importance of these issues need  to be explained in language that is easily conveyed.

So, I recommend that the Democratic party choose several spokespersons, one of whom could become the party’s next presidential candidate. These people must all be willing to preach and explain extensively across the country from the same political “bible”. Positive name recognition for an eventual presidential candidate on a National basis is important.

The next strategy  is to target the congressional elections next year, with a concentration on the races that are billed as “toss-ups”, as well as those States and constituencies with the largest concentrations of lower income people, especially renters.

I call your attention to an excellent article by Ballotpedia.Org on the 2026 congressional  elections. To summarize:33 Senate seats and all 435 House seats are up for grabs. Ballotpedia lists each district as “Republican, Democrat or toss-up”.

 Obviously,  a disproportionate allocation of resources (especially with respect to the Senate races) should be allocated to the “Battleground States.” But that’s not the only consideration.

Here is reference to another  meaningful article written by The National Low Income Housing Coalition.

The article contains the quote below regarding the 2022 election, which appears to be the most recent one for which survey stats are available:

“The U.S. Census Bureau published its findings on voter registration and turnout in the November 2022 midterm elections on May 2. The data reveal persistent gaps in voter turnout rates between renters and homeowners and even greater disparities between low-income and high-income people. While 58% of eligible homeowners turned out to vote in the midterm elections, just 37% of eligible renters cast their ballots. Sixty-seven percent of eligible voters with household incomes above $100,000 voted, compared to just 33% of eligible voters with household incomes below $20,000. These disparities underscore the need for advocates, direct service providers, tenant organizers, housing providers, and other organizations that work with low-income renters to register voters and get out the vote in their communities.”

Thus,  the best bet for success next year is to target potential voters who are low-income and/or renters. I suggest that campaigns focus on encouraging voting by mail (where permitted), early mailing of ballots and providing buses on election day to take people to the polls (even if some people may vote for the other  party).

Now, there is one further issue that must be faced.

If there is to be a repeal of the social safety net provisions that are being taken away, how does the U.S. avoid going even further into debt? The answer easily merits an article on its own but the bare-bones gist of  it is to severely curtail defense and other related spending.

Take a look at statistics from entities like the Peter G Peterson Foundation. One of their  articles, along with a simple graph shows that

The United States spends more on defense than the next 9 countries combined.

Here is a summary prepared by AI  (o.k. I’m lazy) of the relevant categories and numbers for defense and homeland  security spending in the so-called “Beautiful Bill:

“Information regarding allocations for defense and homeland security can be found in the “One Big Beautiful Bill Act” (OBBBA), which includes funding for both areas.

Defense Allocations:

• The OBBBA includes approximately $150 billion in new defense spending.
• This includes funds for:

• Naval shipbuilding.

• Missile defense systems.

• Weapons development.

• Nuclear forces modernization.
• Personnel support, such as housing allowances and childcare.

Homeland Security Allocations:

• The bill allocates funding toward border security and enforcement, including measures to deter illegal immigration and counter fentanyl trafficking.
• It provides funds for:

• Sustaining Border Patrol agents.

• Detention and removal operations for criminal aliens.

• Modernizing Coast Guard assets to enhance border security.

• Border security technology.

Additional Details:

• The homeland security portion of the bill also addresses cybersecurity, critical infrastructure protection, and disaster preparedness.

Here’s a breakdown of the key aspects:

• Total proposed budget: $107.9 billion.
• Discretionary funding: $62.2 billion.
• Disaster Relief Fund: $22.74 billion.
• House Republicans’ approved bill: $66.4 billion.
• The OBBBA also includes controversial provisions related to immigration enforcement. The projected cost is $150 billion.

Key components of this funding include:

• Detention Centers: A considerable portion, $45 billion, is earmarked for building new immigration detention centers, including facilities for families. This represents a significant increase compared to previous budgets and could expand the country’s detention capacity to more than 100,000 beds.
• ICE Enforcement: Around $30 billion will be directed towards enhancing Immigration and Customs Enforcement (ICE) operations, encompassing hiring more personnel, covering transportation costs, and maintaining facilities. This substantial funding is projected to triple ICE’s annual budget and facilitate the hiring of thousands of additional ICE agents and support staff.
• Border Wall: A sum of approximately $46.5 billion is allocated for the construction and expansion of the border wall.
• State and Local Reimbursements: The bill includes funding to reimburse state and local governments for costs associated with immigration and border enforcement, with one estimate placing this at around $13.5 billion.

Ask yourself the question: What’s better for our people, Welfare or warfare?

Support the site with a subscription today and see no more ads!

Go Ad-free Now!