Thursday, July 22, 2010

Bush Tax Cuts to Save Democrats in November?

Well, well, well! Democrats may keep George W. Bush's tax cuts in a desperate move to keep their seats in November.  How will the Marxist Propaganda Squad (once known as the mainstream media) spin this? Whether Democrats dare to do it or not, it's on the table. We have the quotes. We won't forget.

Tax Cuts - The Rich Pay More

The irony of trying to use President Bush's tax cuts by Democrats who have maligned them as a way to make the rich richer, is sweet. Three months before the elections, we have some Democrats on record saying the Bush Tax Cuts, which expire at the end of this year, worked and will continue to work.

Some Democrats want to postpone the sunset - obviously until after November 2010 and maybe until after November 2012.  Sen Byron Dorgon (D-ND) believes the spending of the rich doesn't amount to much...they need to be taxed more, and taxed now. In the graphic above, you can see that the rich in either category are taxed at a rate almost double the proportion of the income received.

To set the scene, a chief economist with Moody's said a drop in spending by the rich has slowed the economy. The highest income earners in the U.S. are credited with 30 percent of spending. They stopped spending, and the "recovery" they're trying to sell was affected negatively.

Allowing income tax rates to reset to pre-Bush levels for individuals earning more than $200,000 and families earning more than $250,000 could generate close to $700 billion over the next 10 years.
From The Hill:
Obama promised that families earning less than $250,000 would not see their taxes increase.
But vulnerable Democrats in Congress are worried about talk of raising taxes, even on the wealthiest families, when the national economic recovery has slowed.
[Rep. Gerry Connolly D-VA]  said Democrats should not allow the 2001 Bush tax cuts to expire for anybody. “People in the upper tax brackets have a huge impact, a disproportionate impact on consumer spending,” he said.  Gerry Connolly is defending the Virginia District 11 House seat in 2010.
Connolly is up for reelection in November. His Republican opponent is Keith Fimian.
Sen. Kent Conrad (D-ND), a senior Democrat on the Senate Finance Committee, said he could support a short-term extension of the Bush tax cuts for the highest income earners. “My reaction would be don’t cut spending, don’t raise taxes and that would mean on anyone,” he said.
Rep. Bobby Bright, a Democrat facing a tough reelection race in Alabama, said tax increases, even if limited to the wealthiest families, could imperil the recovery. “I don’t care if it’s the wealthiest of the wealthy, you don’t raise their taxes,” he said. “In a recession, you don’t tax, burden and restrict. The economy is like a ship, and if you sink the ship, all the good you might do goes down with it.”
Bright is up for reelection in November. His Republican opponent is Martha Roby
Sen. Tom Harkin (D-IA) would like to see the Bush tax cuts expire for families earning $200,000 a year, or even less.
Rep. Jerrold Nadler (D-NY) (paraphrased) wants some tax adjustments to reflect the regional cost of living. Nadler represents Manhattan. 
From Tax Cuts Increase Revenue "the way to soak the rich is with low tax rates...":


If Mr. Obama does succeed in raising tax rates on the rich, we'd also wager that the rich share of tax payments would fall. The last time tax rates were as high as the Senator wants them -- the Carter years -- the rich paid only 19% of all income taxes, half of the 40% share they pay today. Why? Because they either worked less, earned less, or they found ways to shelter income from taxes so it was never reported to the IRS as income.


It's not pleasant being a Democrat in 2010, and its downright terrifying to be a Democrat up for reelection in 2010.

©2007-2012copyrightMaggie M. Thornton