When one side gets everything it wants, how do you call that a bipartisan deal? Democrats are giving up on extending tax cuts only for the middle class and it looks like this week the Republicans will get exactly what they wanted — continuing the Bush-era cuts for everyone, including the super-rich.
GOP lawmakers will not even give up tax cuts for multi-millionaires. They refused to accept a Democratic bid in the Senate to end cuts for those earning more than $1 million.
The disappointing result of this debate — other than adding hundreds of billions to the national debt — is that it does nothing new to directly boost the economy. It just maintains the status quo.
These are cuts that have already been in place for years. Whatever good they might have done is already done. The argument that ending cuts would hurt the economy is tough to prove, considering that we got a major recession despite the lower rates.
And if every time there’s a plan to help middle-income Americans it comes at a cost of doing more for the wealthy so much for doing anything about the alarming gap between rich and poor – the biggest of all industrialized countries. On Capitol Hill there seems to be no gap. It’s all about the rich.
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69 Responses to Tax Fight: This is Compromise?
Now on The Trail
kgc, here’s another perhaps more accurate depiction of mitch to file alongside the snake and turtle images.
http://www.courier-journal.com/article/20101205/OPINION03/312050050/1020/Scott%20Coffman%20%7C%20How%20the%20Mitch%20Stole%20Christmas?GID=Dn55Egyp6Dz3Er9qxjwfRGI8jJ5Hyh5QIz4Q/hYh9GA%3D
words of wisdom from gus kahn in 1921:
Ev’ry morning, ev’ry evening
Ain’t we got fun?
Not much money, Oh, but honey
Ain’t we got fun?
The rent’s unpaid dear
We haven’t a bus
But smiles were made dear
For people like us
In the winter in the Summer
Don’t we have fun
Times are bum and getting bummer
Still we have fun
There’s nothing surer
The rich get rich and the poor get children
In the meantime, in between time
Ain’t we got fun?
Landlords mad and getting madder
Ain’t we got fun?
Times are so bad and getting badder
Still we have fun
There’s nothing surer
The rich get rich and the poor get laid off
In the meantime, in between time
Ain’t we got fun?
ap, as old William Arthur Ward said:
“To laugh is to risk appearing a fool,
To weep is to risk appearing sentimental.
To reach out to another is to risk involvement,
To expose feelings is to risk exposing your true self.
To place your ideas and dreams before a crowd is to risk their loss.
To love is to risk not being loved in return,
To live is to risk dying,
To hope is to risk despair,
To try is to risk failure.
But risks must be taken because the greatest hazard in life is to risk nothing.
The person who risks nothing, does nothing, has nothing, is nothing.
He may avoid suffering and sorrow,
But he cannot learn, feel, change, grow or live.
Chained by his servitude he is a slave who has forfeited all freedom.
Only a person who risks is free.
The pessimist complains about the wind;
The optimist expects it to change;
And the realist adjusts the sails.”
Good post, Craig.
AP — all this death talk makes me uneasy.
“Wall Street banks are considering changing the timing of their annual bonuses in a bid to avoid possible tax increases.”
http://www.dailyfinance.com/story/credit/banks-consider-changing-bonus-schedule-to-avoid-tax-hike/19747699/
barf
The wealthy have endured and maintained their position.
http://www.huffingtonpost.com/robert-kuttner/what-now-for-the-democrat_b_792301.html
“What Now for the Democrats?”
“Let’s imagine the political possibilities of the next two years and beyond. So far, President Obama’s response to the drubbing of the mid-term has confirmed the progressive community’s worst fears. Astonishingly, he still seems to believe the following:
The American people care more about bipartisan compromise and budget cuts than about ending the economic crisis.
If he just compromises a little more, the Republicans might still meet him halfway.
The recipe for economic recovery has something to do with reducing the short term federal deficit.
All three of these premises are disastrously wrong — as politics and as economics.
Gestures like freezing federal pay levels and cutting the government workforce only play into the rightwing mantra that the government is the problem. Politically, they signal weakness.”
Rep Anthony Wiener was on Imus this morning. His dissection of the presidential rationale for buying into bipartisanship re the tax cuts was spot on.
God, our poor prez is so wrong in what he’s doing--saying it’s okay that you and I borrow, from China, 40-pct of the money to pay the billionaires taxcuts. Insane!!
Question?
How much compromise did Nancy and Harry bring forward? The voters spoke and if the Republicans blow it then… the voters speak again…
Also look up the economic value of Velocity. Then combine this with the fact that Nothing needs to go through the hands and control of the Federal Government to Stimulate the Economy.
The only reason to suck the money from the super rich is to one -- CONTROL or you could force the dollars into the economy.
Give incentives next to “set the dollars free” and increase the Velocity. A nice fix !!
http://pajamasmedia.com/eddriscoll/2010/12/02/helen-thomas-rescinds-her-apology/
Why I didn’t buy it the first time Craig…..
And my suspicions were right…
pong
The can’ts are an obstructionist party…believe heavily in voter suppression…anything to champion the cause of the wealthy ruling class. Compromise is not in the republican dictionary. How much money are we able to suck from the rich before they become anemic? A lot!
Dems get a year more extension for unemployment. Three years on unemployment? I guess it DIDN’T create jobs, did it Pelosi?… and Obama is seeking approval on Start as well as a number of other things…
And you suggesting he do what? Pretend there has been no power shift?
http://www.bbc.co.uk/news/world-us-canada-11923766
America’s friend….
today’s question: “This is Compromise?”
merriam-webster:
Definition of COMPROMISE
1a : settlement of differences by arbitration or by consent reached by mutual concessions b : something intermediate between or blending qualities of two different things
2: a concession to something derogatory or prejudicial
today’s answer: no
I know many think Obama is not an American, but I think he really isn’t a democrat.
“he really isn’t a democrat”
bw, i think we should demand to see his registration. and would signing of same (assuming there is a real certifiable registration) been perjury, making a false statement on an official government document?
It amazes me how stupid is the average American who thinks we should protect the wealthy — wasn’t this the same crew who in the middle of the night stole the value from our homes and spent our IRAs and 401Ks….all while we were sleeping? ?
It is beyond jaw dropping and eye rolling.
Ping, I believe the Founders intended taxes imposed on the wealthiest amongst us should be confiscatory in order to maintain the socioeconomic balance of the citizenry. At the time, the mechanism for achieving this confiscation would be inheritance taxes (fine with me).
I don’t have the energy to go back through Publius’ writings, but I believe such mundane things are discussed there. And, these people weren’t bleeding heart liberals--they just wanted our Republic to succeed without morphing into an oligarchy.
Just in time for the holidays: What to drink to save the planet.
http://motherjones.com/environment/2010/11/carbon-footprint-beer-whiskey-tequila
Jamie, thanks for the post. There are also eco bottles for wine…made of plastic. Wine.com offered them as gift and I sent to my FIL in Phoenix. He loved the wine and thought the bottles were great. Easy to recycle. The weight of the glass bottle leaves a big print in terms of shipping and the plastic is easily recycled.
I posted yesterday that Obama is a dud. I remember his inspirational speech at the dem convention…the passion for the little guy being able to ‘make-it’ in America. Get a fair shake. Fight corruption and no longer politics as usual. What a crock! Obama is the tool of the rich and the military are having a fun time with him due to his insecurity as commander in chief.
There is the disappointment…the duping dud!
BW, nothing left but a belt buckle and a pair of boots.
and those belong to Santa Claus, Flatus!
The Republicans said let the people eat cake. How well did that work out for Marie Antoinette?
http://en.wikipedia.org/wiki/Guillotine
The period from June 1793 to July 1794 in France is known as the Reign of Terror or simply “the Terror”. The upheaval following the overthrow of the monarchy, invasion by foreign monarchist powers and the Revolt in the Vendée combined to throw the nation into chaos and the government into frenzied paranoia. Most of the democratic reforms of the revolution were suspended and large-scale executions by guillotine began. The first political prisoner to be executed was Collenot d’Angremont of the National Guard, followed soon after by the King’s trusted collaborator in his ill-fated attempt to moderate the Revolution, Arnaud de Laporte, both in 1792. Former King Louis XVI and Queen Marie Antoinette were executed in 1793.
How soon before there is a new Maximilien Robespierre ?
Anon-Paranoid, I am very sorry but felt it necessary to remove your earlier comments. Of course, I believe it was hyperbole, but to many it would sound like death threats. You are too smart and able to present your passionate point of view to undercut yourself with such talk. So don’t go away, please, just tone it down before we all get a call from the FBI. — Craig
This is the same story as in July…
http://www.theatlanticwire.com/opinions/view/opinion/Should-We-Extend-Unemployment-Insurance-4328
Cost of unemployment extension of benefits = $33 billion
Tax cuts for the wealthiest Americans = $678 billion
ap…I hope this doesn’t make you more paranoid. We like having you here. Craig..the FBI? They read the blog?
Blonde, just teasing about the FBI. But everyone should remember these are public comments in a public forum. So they can show up in search engines, etc., and never go awsay. We are not just talking to ourselves.
mornin’
Poobah, you and I are of one mind on this issue. If there is compromise, I don’t see it. I can’t for the life of me understand how any of this is a compromise.
LOL @ Ping’s take. By the time the legislation is passed they will have given up their position. They compromised the whole damn thing away. As to Reed, the test votes Saturday tell that tale.
Max, until the ‘can’ts made unemployment benefits a political statement, passage of the extension to 99 weeks was routine. Compare job growth pre- and post-passage of the stimulus (and unemployment extensions over the same period) then spout your anti Nancy meme. 23 months of job losses before Jan. 2010 capping off zero net job growth from 2/2001 -- 2/2009. Did thos programs work as well as anyone hoped? No. But better than what went before? Imminently.
http://www.marketwatch.com/story/green-shoots-monthly-jobs-data-might-show-growth-2010-01-03
Craig…
No problem. Do what you have to do.
BW…
If you are worried that the FBI reads this blog don’t be. However Homeland Security probably does. Besides I’m sure I’ll be hearing from someone since I posted my last post on my sight.
After all I am not doing anything illegal or unlawful since I pray a lot and follow what I read in the Bible which is according to everyone the book and Word Of God.
You will find in the Old Testament many references where they pray for the demise of their enemies and I do the same for Republicans.
I do understand Craig. It is “how” I found out my ex was hiding in Mexico…from his BIL’s blog. However, you do have the power to delete posts and I have a lot of typos and embarrassing statements I have made (even today) that I would love to have ‘erased from the record.’ : ) Perhaps, this can be offered as a service.
No, Anon, not for everyone. But, I do respect the kind parts.
The the extension of the Bush tax policy extends a failing tax policy that has never created jobs. It doesn’t because it is based on an out of date idea that doesn’t take into account the global economy. Generic tax breaks on high income, dividends and capital gains are as likely to stimulate investment overseas as it will here. All large corporations are heavily invested over seas and for most that is where they are concentrating their expansion. They aren’t investing it here, just small business is. Last month I posted an article that showed the industrial investment in plant and equipment was flat through the Bush years. If we don’t see an investment in new plant and equipment then we will see a further erosion of the manufacturing base.
Our tax system needs to be fixed.
second, This latest compromise is a total loser in that it make the Democratic party to be the party of welfare and nothing else.
And just like the healthcare bill Obama apologist on the left will tell us how progressive it is and point to the welfare provisions of extending unemployment payments.
Jack
Jack, anyone who believes the healthcare bill is progressive doesn’t have a clue what it did. Whatever progressive elements exist in it are far overshadowed by the capitalistic elements in it that feed the insho companies 30 million new subscribers.
And that first paragraph in your 10:13 couldn’t be more right (as in correct).
patd
Mitch McConnell -so many possibilities
Even if that tax cuts were extended on taxable incomes below $250,000, the rich would STILL be getting a continuation of the tax reductions on all their income below that amount. Only the taxable income MORE than $250,000 would be taxed at a higher amount, and that rate would still be modest in historical terms.
Obama was just protecting his own self-interest.
He has turned out to be a shallow, self-serving, selfish, lazy,
wimp…yes he has a higher iq than Shrub but he doesn’t use it for the common good. …so who cares
he has taken no risks and he has disappointed pretty much every sector that supported him and only made happy those who seek to destroy him.
Here’s Fineman’s take on the tax deal.
http://www.huffingtonpost.com/2010/12/05/tax-cuts-house-senate-democrats-deal_n_792258.html
No matter how it ends, this may be worth the price of the ticket.
thanks for the link pogo…perhaps the tax cuts should expire. I would rather see that for the moment (and I believe it is just a moment) than the wealthy bankrupting us some more.
http://blogs.cqrollcall.com/trailmix/2010/12/tax-fight-this-is-compromise.html#comment-323181
CJ, that’s right. Good summary.
And Newt says he is inclined to run again
What is wrong with that picture?
running would do newt good, he is a little pudgy and can use the exercise.
Since the Bush Tax Cuts will now be extended (now who in their right mind didn’t think they wouldn’t be extended?), all those grandstanding rich Progressives who make over $250,000 a year (actually that is $250,000 per family) should as a sign of good faith go ahead and send the government the additional 2 to 3% they wanted everyone to pay. But we know they won’t, as the Liberals lack the convictions of their own beliefs. Keeping the boot applied to the throat of the Progressive agenda. Now that have a familiar sound to it, where have I heard something like that before? Press Secretary Robert Gibbs.
http://blogs.cqrollcall.com/trailmix/2010/12/tax-fight-this-is-compromise.html#comment-323188
All I can say is “what a load of crap.”
Newt…his campaign committee should be taxed as a for profit business
AP — I don’t think for a minute that the FBI or DHS is reading your posts….but you post a lot of things that — if a tea bagger posted them — I would consider a physical threat. And you DO tend to make me nervous.
“Posted by: craigcrawford.myopenid.com | December 6, 2010 9:51 AM”
“just teasing about the FBI”
That is because it is more than just the FBI who scan these public and private blogs, Chatrooms, Face Book etc. You can call a public figure a dumb ass, but you be foolish to wish them harm, even if it was hyperbole.
If anybody besides Craig and the rest of are paying any attention to AP’s rants then it is another sign that our security system has too much time and too much money.
So they would be a good spot to cut money. and excess personel.
KGC
Not just Newt but the whole rightwing money machine.
Jack
The arguments in the Prop 8 case are fascinating. The poor anti prop 8 attorney is getting raked over the coals. To watch the fun and games, grab a bowl of popcorn and turn to C-Span
Ask the question on How to Get the Economy moving!
We must have a strong Private Sector which is the true source of innovation that has enabled most everything in your life !!
Why do so many people think that it Must go Through the Federal Government? Why? If investments are made do you really want your Fed’s to control them?
Other then Control and placing limits -- this serves no purpose other then less efficient deployment of assets!
Damn shame -- Don Meredith died after suffering a brain hemorrhage.at age 72.
“thanks for the link pogo…perhaps the tax cuts should expire.”
ditto what bw said.
the troops shouldn’t be the only ones asked to sacrifice. all those people getting layed off shouldn’t be the only ones asked to sacrifice. all those longterm unemployed who’ve lost their benefits shouldn’t be only ones asked to sacrifice.
The Keyensian economic model, while far from perfect, has shown far better results that the Voodoo supply-side, trickle-down economic model.
According to the economic data, we are doing GREAT!
The Great Recession ended in June 2009,
Gross Domestic Product (GDP) is at an all time high and up 4.5% over 2009 and 2.7% above 2008.
Personal consumption is at an all time high and up 3.8% over 2009 and 2.8% above 2008.
Corporations reported record profits and the effective Federal Corporate Tax Rate was 19.2%, not 35%. The 2009 effective Federal Corporate Tax Rate was a low of 14.7% with the 2009 Stimulus’ tax breaks, corporate subsidies and loopholes.
The stock market is back! As of December 3rd the S&P 500 is up 9.8% for the year. If you have a good financial advisor, your IRAs, 401Ks and/or retirement funds should have recovered. The market is at the value it has not seen since September 19, 2008, when the S&P 500 closed at $1,255.08 on its way down from its record high closing of $1,565.15 on October 9, 2007, and on June 13, 2006 when in closed at $1,223.69 on its way up to the record high.
The only thing the Obama administration and his economic team forgot to work on was good jobs for the middle class. His promise when he came in to office was an unemployment rate of no more that 8% if Congress passed his Stimulus plan. They did he didn’t! They say jobs are a lagging economic indicator; Obama has made them Dead On Arrival (DOA). He and his economic team have created and will be remembered for a jobless recovery.
None of Bush43′s 2001 and 2003 tax cuts should be made permanent!
Treasury estimates the costs of making the tax cuts permanent for everyone is $4.34 trillion over 10 years. Of that, $3 trillion accounts for the cost of extending them for the 98 percent. The remaining $700 billion is the cost of extending them permanently for the top 2 percent of high-income earners.
If the Republicans refuse to extend just the middle class tax cuts, have a strong spine and let them all expire. Blame the economic effects on the Republicans.
According to conservatives, or anyone who espouses supply-side, trickle-down or Voodoo economic policies, increasing taxation and regulation under President Carter stifled the economy. During his four years from 1977 to 1980 President Carter created 9.228 million Private Sector jobs at a top marginal tax rate of 70%. During his 8 years George W. Bush created either 189,000 or lost 596,000 Private Sector jobs, depending on whether December or January is used. Bush43′s best four years, from 2004 to 2007, produced 7.025 million Private Sector jobs during the Iraq war he started. War does create jobs. Bill Clinton’s best consecutive 4 years was 1994 to 1997 when he created 11.527 million Private Sector jobs after his tax increase. George H.W. Bush was correct; supply-side economics is Voodoo economics.
Tax expert Len Burman says that only 3% of small businesses are subject to the top two individual tax rates. He also notes that much of the income from those businesses comes from private partnerships such as law and accounting firms, investment firms and hedge funds, and not from traditional mom-and-pop ventures.
The U.S. government spent nearly $400 billion, mostly through tax breaks, in 2009 in U.S. tax breaks to encourage home ownership, retirement savings, business start-ups and education mostly benefit top income earners and do little to help low and middle income people build wealth, a report by the nonprofit Annie E. Casey Foundation and the Corporation for Enterprise Development (CFED) said.
From Austan Goolsbee January 20, 2008; When President John F. Kennedy cut top marginal rates to 70 percent from 91 percent, take-home pay more than tripled for these taxpayers, to 30 percent from 9 percent. By contrast, letting the Bush tax cuts expire so top rates rise to 39.6 percent in 2011 from 35 percent, cutting the take-home share to 60.4 percent from 65 percent, hardly seems the stuff of tax revolution.
Studies of the 1964 tax cut showed that about a third of it was recouped. The belief that the Reagan tax cuts might get back a third of the revenue loss was always a long-run proposition. Even the most rabid supply-sider knew we would lose $1 of revenue for $1 of tax cut in the short term, because it took time for incentives to work and for people to change their behavior.
The belief was that the low corporation tax rates enabled Ireland to compete unfairly in attracting international investment. Low tax rates produce low revenues and Ireland is estimating a bailout will be less than 100 billion Euros.
PiT, nice post. What seems to be missing is some sort of carrot/stick mechanism in the tax code to get those profitable corps to invest and hire within the US. Government spending can do only so much w/r/t unemployment -- if the private sector won’t invest and hire to create US jobs, no amount of spending will make up for that lack. The BS about uncertainty about tax rates depressing hiring among small businesses is just that -- BS.
Where’d that first 3/4 or so of your post come from -- I’ve seen the paragraph talking abgout the comparison of Carter to Bush, but can’t t remember where -- early Alheimer’s I’m guessing.
And although it means little to anyone who doesn’t follow Alabama football, the Tide will play the Spartans on 1/1, with 2 ex-Michigan State head coaches -- Nick Saban and Bobby Williams -- on the Alabama sidelines.
http://blogs.cqrollcall.com/trailmix/2010/12/tax-fight-this-is-compromise.html#comment-323195
Ping
Did you think that was a comment on something?
it started from nowhere and went to nowhere and made no point along the way.
I was going to address it but I couldn’t make any sense of it?
Jack
For the winers among us -- and I know there a bunch of them (us).
http://www.huffingtonpost.com/gregory-dal-piaz/wine-questions-answers-faq_b_791773.html#s198616
Ping
“We must have a strong Private Sector which is the true source of innovation that has enabled most everything in your life ”
This sentence is true and is never in dispute.
It is why I said we must let the Bush tax cut expire. They have proven to be detrimental to a strong private sector.
Thems the facts
Jack
http://blogs.cqrollcall.com/trailmix/2010/12/tax-fight-this-is-compromise.html#comment-323199
Pogo,
The Carter to Bush comparison I posted last week. I have made some improvements and posted again. This time I am on topic.
There is NO evidence that a low marginal income tax rate has anything to do with jobs. I have researched from 1952 forward and the Eisenhower administration, with a top tax rate of 91%, had the best GDP growth during when adjusted for inflation of any administration to today..
ping…it is those lucrative federal contracts and grants that have paid for the innovative in my life. ‘Velcro’ is a true gift from NASA.
Our economy is a fine dance of government and private sector…not purely driven by either sector and lots of stepping on toes by both!
Hey
Timmy is blogging
http://www.treasury.gov/connect/blog/Pages/welcome-note.aspx
PiT, It sounded so good I thought it came from some article somewhere. There is no reason to believe that the same nitwits who have perpetuated the supply side, trickle down, Laffer curve view of the economy -- all evidence to the contrary -- would now have some evidence-based argument to support their screwed up view of economics in the US to justify their gift to the top 2%. Of course this is from the same quarter that criticizes the dem party for not fixing their party’s dismemberment of the economy in less than 1/3 of the time it took them to take it to the brink. I really don’t get it -- which I suppose is why I’d never make it as a politician.
This sort of bravery, dedication, devotion is priceless.
BE AWARE PARTS OF THIS VIDEO CONTAINS GRAPHIC IMAGES.
The story is about Channing Moss, who was impaled by a live RPG during a Taliban ambush while on patrol. Army protocol says that medivac choppers are never to carry anyone with a live round in him. Even though they feared it could explode, the flight crew said damn the protocol and flew him to the nearest aid station. Again, protocol said that in such a case the patient is to be put in a sandbagged area away from the surgical unit, given a shot of morphine and left to wait (and die) until others are treated. Again, the medical team ignored the protocol. Here’s a short video put together by the Military Times, which includes actual footage of the surgery where Dr. John Oh, a Korean immigrant who became a naturalized citizen and went to West Point , removed the live round with the help of volunteers and a member of the EOD (explosive ordinance disposal) team. Moss has undergone six operations but is doing well at home in Gainesville , GA.
http://tinyurl.com/simply-remarkable
Pogo,
Most of my data comes from the U.S. Bureau of Labor Statistics (BLS) and U.S. Department of Commerce’s Bureau of Economic Analysis (BEA). Except for my rant yesterday. It came from news articles.
PiT
Your cheating, Whats this going to a direct source and getting real numbers about anyway.
You are suppost to be quoting huffpo or fox news
Jack
btw
a high tax rate on upper income works if you have plenty of loopholes that point toward continued investment, Use it or lose it.
Also, keep it only on the very highest whose income is almost all investment income.
Jack
Don Blankenship: The Dark Lord of Coal Country
http://www.rollingstone.com/politics/news/17390/236336
Private Sector which is the true source of innovation that has enabled most everything in your life !!
———--
Let’s see no TVA , and there wouldn’t have been enough electricity to move the south out of the 19th century, where it was stuck. No interstate highway and they would still be stuck there as well.
No space program, and the driving need for smaller computers, would have slowed.
No Hoover dam and LA would be impossible.