Category Archives: Taxes
On 6 Jan 1983, the great tax cutter President Ronald Reagan signed into law a five cent per gallon federal gas tax hike; that’s right, Ronald Wilson Reagan signed into law a five cent per gallon tax increase. The reason for the new tax hike? He was going to stimulate the economy!
Wow, the great white father of Republican mythology raised yet another tax; where does it all end Timmy?
It’s time for the far right-wing worshippers to come to the pool of truth, drink deeply, and admit Reagan didn’t raise revenues from trickle down, he did it by raising taxes, more than 12 times during his eight years in office, including raising the federal gas tax. Can you imagine how apoplectic the right would go if President Obama merely suggested a five cent gasoline tax? They’d be beside themselves screaming it was a socialistic plot to take over the petroleum industry.
Facts are stubborn things, and facts are Reagan cut taxes his first year in office, and when he failed to turn the economy around he then raised taxes non-stop his remaining years in the White House. Facts are stubborn things.
The Huffington Post’s reporting that the Wall Street Journal’s editorial page has attacked congressional Republican Tea Party (GOTP) members for possibly losing the payroll tax cut standoff to President Barack Obama.
The Editorial began recounting how GOTP Senate leader Mitch McConnell “famously said a year ago his main task in the 112th Congress was to make sure President Obama would not be re-elected. Given how he and House Speaker John Boehner have handled the payroll tax debate, we wonder if they might end up re-electing the President before the 2012 campaign even begins in earnest.”
Earlier this week GOTP House members killed the two-month extension of the payroll tax cut, unemployment benefits and a provision avoiding Medicare payment cuts to doctors by a 229-193 vote. The Senate had voted by an 89-10 margin to extend all three for two months. All three provisions expire on 1 Jan 12. GOTP House members want the Senate to return and negotiate over a compromise plan but Democratic Senate Majority Leader Harry Reid said he won’t negotiate until the House approves the Senate’s package.
Finally Senator Reid has shown some back bone against the Tea Party conservatives across the aisle; what’s even better about this situation is McConnell had clearly struck a deal with Reid, and Boehner has to have been part of it as well but then his Tea Party compatriots cut his knees out from under him led by Eric Cantor.
The conservative editorial board wrote that the GOTP has “thoroughly botched the politics.” The board also added that Obama’s in a “stronger re-election position today than he was a year ago.”
After 1 Jan 12, the payroll tax paid by workers will rise from 4.2 percent to 6.2 percent and benefits for the long-term unemployed will expire if Congress doesn’t pull its head out of its collective fourth point of contact. Doctors will also face a 27 percent cut in Medicare reimbursements scheduled to take effect on 18 Jan 12.
The icing on the cake for the President is that 2008 Republican Presidential candidate Senator John McCain of Arizona showed his approval of the editorial tweeting, “WSJ is right on the mark here.”
When the smoke clears from this latest GOTP catastrophe, the President will once again come out on top, John Boehner may find himself stepping down as Speaker, and the Tea Party will come out as having attempted one bridge too far; come 2012 the bill will come due and local Congressional Districts will likely toss the riff raff out turning the House back to a Democratic majority. The Tea Party’s angry white guy shtick only plays so far and they’ve been on stage well past their collective curtain call.
Senate Democrats have stepped up and released a bill to extend and expand on the payroll tax cut that would otherwise expire at the end of this year.
The Middle Class Tax Cut act, S. 1917, would cut the employee and employer payroll tax to 3.1 percent, half of the 6.2 percent tax they would normally face. The bill applies this cut to the first $5 million in payroll for companies, which Senate Democrats estimate will cut payroll taxes in half for 98 percent of U.S. companies with payroll below that cap.
The bill also includes a “surtax on millionaires,” which applies a 3.25 percent tax on modified adjusted gross income over $1 million or $500,000 for a married individual filing separately. This tax would take effect in 2013.
Sen. Bob Casey Jr. (D-Pa.) is the chief sponsor of the bill, which is also co-sponsored by Senate Majority Leader Harry Reid (D-Nev.) and Sens. Sherrod Brown (D-Ohio), Robert Menendez (D-N.J.), Charles Schumer (D-N.Y.) and Debbie Stabenow (D-Mich.).
Democratic leaders said they’d look to take up the tax bill soon, but had not scheduled any votes on the bill as of Monday night.
While the Republican Tea Party (GOTP) do-nothing House has wasted an entire year with grandstanding tactics like reading the Constitution, validating that our nation’s motto is “In God We Trust”, and introducing more than 100 bills aimed at limiting abortion; the Democratic Senate has introduced a bill aimed at helping Americans during a recession, cutting taxes to those of us who need them cut, and raising taxes on those who can easily afford an increase and who’ve benefited far too long on everyone else’s backs; it doesn’t bode well for a GOTP that ran on “jobs” and which has produced zero.
Who has two thumbs and is whining about only having $400,000 to spend for his very own? It’s Republican Tea Party (GOTP) Congressman John Fleming.
While appearing on MSNBC to try to explain why he opposes President Obama’s tax increase on those earning more than $1 million per year, Fleming became defensive to the point of stupidity when host Chris Jansing commented on the fact Fleming has an income of more than $6 million annually.
“The amount that I have to reinvest in my business and feed my family is more like $600,000 of that $6.3 million,” Fleming explained. “So by the time I feed my family I have, maybe, $400,000 left over to invest in new locations, upgrade my locations, buy more equipment.”
So, let me see if I understand this correctly congressman; you spend $200,000 per year feeding your family? How many kids do you have? Are you a polygamist? What the deuce are you feeding your family gold plated hot dogs?
According to the Wall Street Journal, Fleming owns a string of Subway sandwich shops and UPS store franchises through which he earned about $6.3 million last year.
Jansing tried to point out to the congressman that he was sounding more than a little petulant, “You do understand, congressman, that the average person out there who’s making maybe 40, 50, $60,000 out there, when they hear you only have $400,000 left over, it’s not exactly a sympathetic position,” she said. “You understand that?”
“Class warfare’s never created a job,” Fleming responded. “And that’s people that will not get jobs. This is all about creating jobs, Chris, this is not about attacking people who make certain incomes. You know in this country, most people feel that being successful in their business is a virtue, not a vice, and once we begin to identify it as a vice, this country is going down.”
Yes, of course congressman, it’s all class warfare – so, how is it class warfare when the President suggests the wealthy pay more taxes, but it’s not class warfare when you – clearly part of the wealthy class – want to slash programs that benefit the poorest among us, and when you want to allow tax cuts benefitting the middle class to expire?
Well let me point something out to you dip stick, we’ve had the Bush Tax cuts for more than a decade and we’ve seen almost zero job creation from all of you good old American “job creators”; you’re chance is up, you and your country club set of business owners now has to foot the bill for the Bush/Cheney ear of adventurism. If you approve/support two wars and you didn’t pay for them, well, the bill is now due; congratulations.