- With just 43 days to go, it looks like Americans may be hit with the largest tax hike in history. If so, blame it on the Democrats. It’s their ideological rigidity that’s costing the country its economic growth President Obama and congressional Democrats are battling with Republicans over the fate of the one bright spot in our economy over the past six years: Bush’s tax cuts.
Obama and his Democratic allies want a temporary extension of the 2001 and 2003 Bush cuts for the middle class (the poor already pay no income taxes), but not for individuals earning more than $200,000 or families earning more than $250,000.
Problem is, even Democrats are split over this. And Republicans are in no mood to let Democrats play class politics with our nation’s economy. They want all the tax cuts extended or nothing.
When asked Wednesday if the Republicans would agree to a deal that would permanently cut rates on the middle class, but for only two years on those with upper incomes, Sen. Orrin Hatch of Utah replied, “Are you kidding?”
Good answer. With Bush’s cuts set to expire at year-end, Democrats, who control Congress until January, can’t agree among themselves what to do — much less cut a deal with Republicans.
“I don’t even know what the options are at this moment,” said Sen. Maria Cantwell, D-Wash. And she’s on the Finance Committee, which will write any new tax law.
By their unwillingness to compromise and inability to even agree among themselves, the Democrats deserve blame if the tax cuts expire. And if you think these tax hikes won’t matter, think again.
Even raising taxes just on the rich, as Democrats propose, would cripple the economy. As American Enterprise Institute economist Alan Viard notes, households with incomes over $200,000 in 2007 took 47% of all taxable interest income, 60% of the dividends and 84% of net capital gains.
These highly productive investors drive the economy and create most of our jobs. Yet they’re the ones the Democrats want to tax. If they do, it will lower income for all groups.
While we support keeping rates low on high incomes, other taxes are also slated to go up sharply at year-end. Republicans shouldn’t forget to keep other Bush tax cuts in place too. They include:
• The estate tax. It will jump from the current zero to 55% at the end of the year on estates larger than $1 million. That will force many families to liquidate businesses to pay taxes, killing jobs.
• The corporate tax. Now at a top rate of 39%, it’s way above the 26% average for the OECD. It’s a big reason for outsourcing. It should be cut to the OECD average.
• Capital gains. Slated to jump from 15% to 20%, the cap-gains tax will hurt stock investors and capital formation. Fewer businesses plus less investment equals a permanent loss of jobs.
• Dividends. Dividend tax rates are set to surge from 15% to a top rate of 39.6% — decimating seniors’ incomes and further hitting investment markets. Dividends should be taxed like cap gains.
These are things that will restore growth — something that the Obama-led Democrats seem to have forgotten.
I would argue that they haven’t forgotten it. Since it’s not in their ideology they don’t believe in it to begin with.
Remember, many a Democrat and Liberal think tax INCREASES are good for you. That making less money is a good thing.
And besides they can’t let evil, satanic, greedy, capitalist pig “rich” off the hook.
The truly loonie left would have a conniption and then stroke out if they did.
So instead they will play chicken.
And were the ones who will have our economic heads lopped off and be running around trying to figure out how deal with it.
Remember, these “tax cuts” are not actually cuts at all. Tax rates would remain the same, but if not kept then Taxes WOULD INCREASE FOR EVERYBODY!
So there are no “cuts”.
But don’t tell the Left this. They hear the phrase “tax cut” and they go into a epileptic fit, turn beet red, and steam comes out their ears!
Expiration of the Bush tax cuts will impose a job-killing, $3 trillion tax increase on a beleaguered economy reeling from near-double-digit unemployment. The necessity of finding a solution is paramount.
So what’s atop President Obama’s agenda? Meeting with leaders of the Congressional Hispanic Caucus to discuss passing the Dream (development, relief and education for alien minors) Act, a bill that has nothing to do with jobs and taxes, but a great deal to do with rewarding Obama’s political base and ensuring an unending stream of Democratic voters.
And we all know that his 2012 re-election and much more voter fraud and democrat voter slaves to overturn the slapdown they got is FAR MORE IMPORTANT after all.
Obama’s 5 minutes of “laser-like focus” on jobs and the economy are up, time to get back to the Agenda!
A top advocate of the Dream Act is Rep. Luis Gutierrez of Illinois. After meeting with the president, he issued a statement saying it would be “a down payment on comprehensive reform, and we will continue working towards comprehensive immigration reform today, tomorrow and until it passes.” “Comprehensive immigration” is liberal-speak for open borders and amnesty.
Gutierrez crowed that three re-elected U.S. senators — Harry Reid, Barbara Boxer and Michael Bennet — “and many other Democratic candidates in state and federal races, owe their jobs to the support of Latino and immigrant voters” who expect payback. As they say, elections have consequences.
So the honeymoon is over. The abusive relationship resumes.
Jobs and tax cuts may have to wait. Americans and legal immigrants are beginning to wonder what benefits accrue to being an American citizen when illegal aliens and their offspring are treated better than law-abiding citizens. So are we. (IBD)
The Agenda is The Agenda!
All Hail the mighty Progressive Liberal Agenda!