We gave the Republicans every advantage, great leverage, in the recent election. They are repaying us with more same old, same old. Get with the program, recognize the message. Let us test the Obama Compromise. First, the Bush tax cuts. If they expire in total, everybody agrees the country is in for a heap of hurt. Therefore, up or down, should we let the tax cuts expire? A two-part question, middle class [sic] and filthy rich. There is virtually unanimous consent on the so-called middle class tax cut so keep it, don't let it expire. The so-called millionaire's tax cut? No consensus so let it expire and judge the consequences when the new congress is seated. If necessary, and I think it will be necessary, reinstate it.
he Bush tax cuts exist in the liberal imagination somewhere in a ring of hell between torture and the Iraq War. For Pres. Barack Obama to endorse their across-the-board extension is a betrayal on par with getting John Yoo s advice on interrogation policy or bringing back Don Rumsfeld as secretary of defense. In deed, if not in word, Obama will refudiate a decade s worth of Democratic rhetoric about the unaffordable, ineffectual, and unjust Bush tax cuts.
Income taxes don t operate in a vacuum. That the rich should pay 39.5 percent on their income might seem justified in isolation. But what about property, state income, payroll, and other taxes that, combined with federal income taxes, can take up to 65 percent of some incomes in high-tax states? In addition, income taxes are already graduated, so one pays a higher percentage of one s income the more one makes. Yet 50 percent of Americans pay no income taxes at all, while 5 percent of taxpayers pay nearly 60 percent of the total collected. The result is that half of Americans are likely to favor both higher entitlements, which they may well receive, and higher income taxes, which they most certainly will not pay.
Even as they hammer Democrats for running up record budget deficits, Senate Republicans are rolling out a plan to permanently extend an array of expiring tax breaks that would deprive the Treasury of more than $4 trillion over the next decade, nearly doubling projected deficits over that period unless dramatic spending cuts are made.
The liberal tax revolt, as the Wall Street Journal is calling it, is a very important topic - especially for investors and small-business entrepreneurs. And for new jobs. The so-called revolt is comprised of three Democratic senators: Kent Conrad, Evan Bayh, and Ben Nelson. They want to extend all the Bush tax cuts. That includes taxes on the wealthy, or the top personal tax rate, the investment taxes on capital gains and dividends, and the estate tax.