Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”
The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.
Wasn’t it Obama and Company that said they weren’t raising taxes on small businesses? 🙂
And shrinking the size of government programs is the whole F*cking point these days, at the people believe.
But not in Washington. They are still trying to get around it. They don’t want to do it. They just want to look like they are.
Which is why I say, the nuclear hot potato they are playing with will go off in our faces before anyone does anything. Guaranteed though, that the liberal will blame it on anyone but themselves.
Geithner’s explanation of the administration’s small-business tax plan came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.
“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”
She then challenged Geithner on the administration’s tax plan.
“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.
Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”
Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”
Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”
Just like the liberal who sight “15 months of private sector job growth” as their way of saying the economy is growing when it’s not. But they want to ignore the burning forest to focus on the one tree that isn’t burning yet and say, “see, I told you it wasn’t on fire!
Raising Taxes during a near-depression is always a good idea. Liberals just don’t get it, and more importantly, don’t WANT to get it. They just want to do what they want to do because they want to do. And they fantasize that it will all work out because in their heads it make so much sense to them. Reality is not their strong suit.
“No, that’s right. I agree with that,” said Geithner. “But just to put it in perspective, it’s important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they’ve been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that’s balanced, good for growth, fair to people as a whole.”
Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people.
What they hell do you call ObamaCare for godsake?
“We’re not doing it because we want to do it, we’re doing it because if we don’t do it, then, again, I have to go out and borrow a trillion dollars over the next 10 years to finance those tax benefits for the top 2 percent, and I don’t think I can justify doing that,” said Geithner.
Ah, there’s the Class WarFare mantra. it always rears it’s ugly head because it’s at the heart of Liberalism.
By the way, the top 1% pay 40% of ALL TAXES. 47% of the American people pay NO TAXES AT ALL!
The top 5% pay 60% of all taxes! (which by the way is well below the $250,000 threshold).
So half the people who pay taxes would be taxed more and the half that doesn’t pay now anyhow wouldn’t. Gee, that sounds like a great idea! 😦
So let’s make them pay more because Liberals want to be “fair” and appease their burning desire for Class Warfare and ‘peasant’ resentment!
Hey, Mr Geithner GOVERNMENT DOES NOT HAVE A REVENUE PROBLEM IT HAS A SPENDING PROBLEM!!!!
And you’re it, buddy!
Not only that, he argued, but cutting spending by as much as the “modest change in revenue” (i.e. $1 trillion) the administration expects from raising taxes on small business would likely have more of a “negative economic impact” than the tax increases themselves would.
“And if we were to cut spending by that magnitude to do it, you’d be putting a huge additional burden on the economy, probably greater negative economic impact than that modest change in revenue,” said Geithner.
Yeah, Over $14,000,000,000,000 in debt is not a worry at all.
Tax and Spend!
Spend and Tax!
When Ellmers finally told Geithner that “the point is we need jobs,” he responded that the administration felt it had “no alternative” but to raise taxes on small businesses because otherwise “you have to shrink the overall size of government programs”—including federal education spending.
Ah, poor baby… 🙂 (This would be the education spending where 12% of students could pass a basic history test after 12 years of it, right?)
“We’re not doing it because we want to do it, we’re doing it because we see no alternative to a balanced approach to reduce our fiscal deficits,” said Geithner.
Yeah, like cutting spending. The myopic Liberal view only sees Keynesian economics and nothing else.
Tax and Spend. Spend and Tax. Class Warfare. That’s it.
“If you don’t touch revenues and you leave in place the tax cuts for the top 2 percent that were put in place by President Bush, if you leave those in place and you’re trying to bring our deficits down over time, then you have to do exceptionally deep cuts in benefits for middle-class Americans and you have to shrink the overall size of government programs, things like education, to levels that we could not accept as a country,” said Geithner.
So you have to grow the size and scope of government and taxes to shrink a deficit?
Elections have consequences people!
“So to do a balanced approach to reduce our deficits you have to make modest changes in revenues,” he said. “There’s no realistic opportunity to do alternatives to doing that.”(CNS)
What we need is a drastic CUT in SPENDING. The revenues will follow.
But since Liberals can’t even fathom that concept this is what you get.
Now that’s you’re Hope & Change! 🙂
More recently we’ve witnessed the creation of new historical narrative about the financial crisis of 2008. The perceived history, eagerly peddled by liberals and Democrats, is that the crash of 2008 was the result of Wall Street greed. It was unregulated capitalism that brought us to the brink of financial meltdown, the Democrats insisted. And they codified their manufactured history in a law, the Dodd-Frank Act, that completely avoided the true problem.
It’s both surprising and gratifying, therefore, to report that a great revisionist history has just been published by none other than a New York Times reporter, Gretchen Morgenson, and a financial analyst, Joshua Rosner.
In “Reckless Endangerment,” Morgenson and Rosner offer considerable censure for reckless bankers, lax rating agencies, captured regulators and unscrupulous businessmen. But the greatest responsibility for the collapse of the housing market and the near “Armageddon” of the American economy belongs to Fannie Mae and Freddie Mac and to the politicians who created and protected them. With a couple of prominent exceptions, the politicians were Democrats claiming to do good for the poor. Along the way, they enriched themselves and their friends, stuffed their campaign coffers, and resisted all attempts to enforce market discipline. When the inevitable collapse arrived, the entire economy suffered, but no one more than the poor.
Jim Johnson, adviser to Walter Mondale and John Kerry, amassed a personal fortune estimated at $100 million during his nine years as CEO of Fannie Mae. “Under Johnson,” Morgenson and Rosner write, “Fannie Mae led the way in encouraging loose lending practices among the banks whose loans the company bought. A Pied Piper of the financial sector, Johnson led both the private and public sectors down a path that led directly to the credit crisis of 2008.”
Fannie Mae lied about its profits, intimidated adversaries, bought off members of Congress with lavish contributions, hired (and thereby co-opted) academics, purchased political ads (through its foundation) and stacked congressional hearings with friendly bankers, community activists and advocacy groups (including ACORN). Fannie Mae also hired the friends and relations of key members of Congress (including Rep. Barney Frank’s partner).
“Reckless Endangerment” includes the Clinton administration’s contribution to the home-ownership catastrophe. Clinton had claimed that dramatically increasing homeownership would boost the economy, instead “in just a few short years, all of the venerable rules governing the relationship between borrower and lender went out the window, starting with … the requirement that a borrower put down a substantial amount of cash in a property, verify his income, and demonstrate an ability to service his debts.”
“Reckless Endangerment” utterly deflates the perceived history of the 2008 crash. Yes, there was greed — when is there not? But it was government distortions of markets — not “unregulated capitalism” — that led the economy to disaster. (Mona Charen)
But I’m sure the liberals will CUT that out of the education they are so desperate to preserve. 🙂
Just Spend More Money!