In the lame duck session, Congress kept the Bush tax cuts for the upper brackets, passed START, repealed DADT and scotched the DREAM Act. Congress also passed a continuing resolution that sets the stage for one heck of a budget brawl in 2011.
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.
It has become clear that the proposed tax legislation includes some offensive perks that are there to accommodate special interests. For example the legislation would provide $5 billion in subsidies for corn-based ethanol and a tariff to protect against ethanol imports. In addition, there are tax breaks for commuters who use mass transit and provisions aimed at increasing production of hybrid automobiles, biodiesel fuel, coal and energy-efficient household appliances.
Barack Obama won the great tax-cut showdown of 2010 and House Democrats don t have a clue that he did. In the deal struck this week, the president negotiated the biggest stimulus in American history, larger than his $814 billion 2009 stimulus package. It will pump a trillion borrowed Chinese dollars into the U.S. economy over the next two years which just happen to be the two years of the run-up to the next presidential election. This is a defeat?
Memo To Republican Congressmen: Handle the tax issue yourselves. Here are some thoughts. Let the Bush tax rates expire. But, start in the House with a new GOP plan. 1.Retroactive to January 1, 2011 the 2010 rates on income and capital gains continue until a future congress changes them, 2.Eliminate the taxes on estates under $20 million. 3.Take the advice of Obama's Deficit-Commission and lower corporate income taxes to between 23% and 29% 4.Implement a 5% tax on repatriated corporate profits. In a Wall Street Journal op-ed piece Cisco's John Chambers estimates this would entice about a trillion dollars to flow into the US economy and generate $50 billion for the treasury.
House Democrats voted Thursday to reject President Barack Obama's tax deal with Republicans in its current form, but it was unclear how significantly the package might need to be changed. By voice vote in a closed caucus meeting, Democrats passed a resolution saying the tax package should not come to the House floor for consideration as written, even though no formal House bill has been drafted. Rep. Peter DeFazio, D-Ore., introduced the resolution. Said Rep. Lloyd Doggett, D-Texas: "If it's take it or leave it, we'll leave 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.
Today, liberals are up in arms about the deal President Obama cut with Congressional Republicans yesterday. Check out the headlines in the online Washington Post: "Biden to Soothe Angry Dems," "Obama's Disastrous Path," "Did Obama 'Blink'?" "Deal Has Liberal Dems Fuming." Obama held a news conference this afternoon to explain the thinking behind the agreement. Reporters obliged him by acting as stand-ins for the Democratic Party's angry left--a role that they seemed to fall into with ease.
A poll conducted by Survey USA provides a sense of the left's dismay at the tax deal President Obama agreed to. Survey USA polled 1,000 people who contributed time or money to the Obama presidential campaign. 74 percent strongly oppose the deal and 57 percent say they are less likely to contribute in 2012 to Democrats who support it.