If you listen to the Obamacrats, letting the Bush tax cuts expire on 1 January 2013 will only impact “the rich,” so middle-class people should cheer them expiring.
Over at SmartMoney, however, they explain several reasons that just about everyone will see a negative impact if these tax cuts are allowed to expire. I’ll focus on just two.
Yep, the President who loves to trash rich people is actually one himself:
The disclosure statement lists assets and liabilities in dollar ranges, so pinpointing the president’s net worth is difficult. His assets appear to tally between $2.6 million and $9.9 million. He holds a mortgage on his Chicago home of $500,000 to $1 million.
Earlier today, Speaker John Boehner spoke to the Peter G. Peterson Foundation’s 2012 Fiscal Summit. Here’s a few of the highlights of his plan from the Speaker’s website, along with commentary, of course (emphasis in original):
In remarks this afternoon to the Peter G. Peterson Foundation’s Annual Fiscal Summit, House Speaker John Boehner (R-OH) will renew his commitment to the principle he set forth at the Economic Club of New York one year ago – noting that the debt limit exists to force Washington to deal with its fiscal problems, and that any increase in the nation’s debt limit must be accompanied by spending cuts and reforms larger than the amount of the debt limit hike.
A lot has been said about the Buffett Rule, here and around the blogosphere, and I’ve come to the conclusion that it illustrates a serious blunder on Obama’s part. He made the discussion about tax rates, and therein lies the danger for him.
By talking about rates, he not only opens himself up to discussions of whether or not he himself paid the same rate as his secretary, he also opened up the discussion of other tax plans such as the Fair Tax and the various Flat Tax proposals out there (including Heritage’s and FreedomWorks‘)*. And if Obama wants to make the discussion about fairness, what could be fairer than everyone paying the same rate?
However, the idea of everyone paying the same rate is anathema to a hard-line lefty like Obama, because their real goal is to use the tax code to punish those who have the drive to succeed and become wealthy. Of course, they except their friends on the left (Kennedys, Kerrys) in favor of attacking those on the right who’ve made their money the hard way (Kochs).
When someone like Obama says “the rich” should pay “their fair share,” to them they mean a higher rate than others (note that the Buffett Rule proposes a 30% rate for the rich, when they claim that his secretary only pays a 25% rate. This is where the danger lies for Obama: when the average voter thinks “fair,” they think along the lines of “everyone pays the same rate.”
Unfortunately for Obama, the discussion on rate was pretty much preordained for his discussions on taxes, because he certainly couldn’t talk about absolute tax payments in real dollars. If you compare what Warren Buffett paid in dollars to what his secretary paid in dollars, it would be apparent how much more the rich pay and he’d have been laughed off the stage.
We have a good chance to laugh him off the stage again. What we need is for the candidates, not only for President but for Congress, to hammer home the point that true fairness is everyone paying the same tax rate.
*Please note, I am not saying I’m in favor of any of these tax plans, just pointing out that there are several proposals out there where everyone pays the same basic tax rate.
The President and First Lady released their tax returns today, and they paid significantly less than the 30% figure he uses for the Buffett Rule, though to be honest, he didn’t reach the million dollar threshold the Buffett Rule would impose.
The President’s effective federal income tax rate is 20.5%.
Barack’s been hanging around Joe Biden too much, he’s starting to make comments that are honest but that hurt his own policies.
President Obama admits it: His proposed “Buffett Rule” tax on millionairesis a gimmick.
“There are others who are saying: ‘Well, this is just a gimmick. Just taxing millionaires and billionaires, just imposing the Buffett Rule, won’t do enough to close the deficit,’ ” Obama declared Wednesday. “Well, I agree.”
Bumped because Obama is still pushing this class-warfare idea.
File this under “things only a lefty would be surprised at”
A bill designed to enact President Barack Obama’s plan for a “Buffett rule” tax on the wealthy would rake in just $31 billion over the next 11 years, according to an estimate by Congress’ official tax analysts obtained by The Associated Press.
Rep. Paul Ryan (R-WI) has thrown down the gauntlet again:
The plan from House Budget Committee Chairman Paul Ryan (R-Wis.) would collapse the current system of six tax brackets for individuals into two marginal rates: 10 percent and 25 percent, according to GOP aides. The proposal would also lower the top corporate tax rate to 25 percent, and scrap the Alternative Minimum Tax.
Rick Perry has unveiled his economic plan, and it’s likely to pick up the nickname 20-20, from the 20% personal and 20% corporate flat tax rates. However, it has a lot more to it, as the campaign website shows:
The current economic problems faced by so many Americans were created by years of wasteful mismanagement and incompetent central-planning and cannot be fixed overnight. To be sure, there are a number of things that can be done by the president on day 1 to begin the process of restoring the American economy. But the reforms necessary to fix the broken tax and regulatory code, balance the budget, and grow the economy for the long-term will take some time and patience. Their implementation requires a clear plan, consistent leadership, and sustained resolve.
Remember all the kerfuffle over Sarah Palin’s “crosshairs”? Think that’ll be repeated with this story?
Several influential New York state lawmakers have received threatening mails saying it is “time to kill the wealthy” if they don’t renew the state’s tax surcharge on millionaires, according to reports.
“It’s time to tax the millionaires!” reads the email, according to WTEN in Albany. “If you don’t, I’m going to pay a visit with my carbine to one of those tech companies you are so proud of and shoot every spoiled Ivy League [expletive] I can find.”
First, I’ll present Ted Leonsis’ bona fides as an Obama supporter, from his own article:
I voted for our President. I have maxed out on personal donations to his re-election campaign. I forgot his campaign wants to raise $1 billion. THAT is a lot of money–money–money–money! Money still talks. It blows my mind when I am asked for money as a donation at the same time I am getting blasted as being a bad guy!
Now, his plea to the President he voted for and supported:
Because “janitor” sounds so much like “Jew”
So says this article from The Atlantic, hardly a bastion of supply-siders:
This week, President Obama announced a new way for the government to make more money: put a floor on the tax rates that millionaires face. He coined the idea the “Buffett Rule,” after billionaire investor Warren Buffett, who recently complained that he didn’t pay enough taxes. Even though incomes are taxed progressively, so those making more money are supposed to pay more, capital gains — like income from stock gains — can escape those marginal rates. That’s one way in which wealthier Americans enjoy lower tax rates than marginal rates would imply.
They even include a handy chart:
WASHINGTON (AP) — Drawing clear battle lines for next year’s elections, a combative President Barack Obama on Monday demanded that the richest Americans pay higher taxes to help cut soaring U.S. deficits by more than $3 trillion. He promised to veto any effort by congressional Republican to cut Medicare benefits for the elderly without raising taxes as well.
“This is not class warfare. It’s math,” Obama declared, anticipating Republican criticism, which was quick in coming.
News flash for the AP and the Obama White House… it ain’t just Republicans who think it’s class warfare.
Rep. Jan Schakowsky (D-IL) seems to think that she’s living in the olden days, when the only media outlets were the Big Three networks, the NYT, and the LA Times:
“I’ll put it this way. You don’t deserve to keep all of it and it’s not a question of deserving because what government is, is those things that we decide to do together. And there are many things that we decide to do together like have our national security. Like have police and fire. What about the people that work at the National Institute of Health who are looking for a cure for cancer,” Schakowsky said.
Taking a short break from… well… taking a break!
Mitt Romney has unveiled his jobs plan:
Five Bills for Day One
The American Competitiveness Act: Reduces the corporate income tax rate to 25 percent
The Open Markets Act: Implements the Colombia, Panama, and South Korea Free Trade Agreements
The Domestic Energy Act: Directs the Department of the Interior to undertake a comprehensive survey of American energy reserves in partnership with exploration companies and initiates leasing in all areas currently approved for exploration
The Retraining Reform Act: Consolidates the sprawl of federal retraining programs and returns funding and responsibility for these programs to the states
The Down Payment on Fiscal Sanity Act: Immediately cuts non-security discretionary spending by 5 percent, reducing the annual federal budget by $20 billion
Over the years, I have paid a significant portion of my income to the various federal, state and local jurisdictions in which I have lived, and I deeply resent that President Obama has decided that I don’t need all the money I’ve not paid in taxes over the years, or that I should leave less for my children and grandchildren and give more to him to spend as he thinks fit. I also resent that Warren Buffett and others who have created massive wealth for themselves think I’m “coddled” because they believe they should pay more in taxes. I certainly don’t feel “coddled” because these various governments have not imposed a higher income tax. After all, I did earn it.