Did Democrats Overplay Tax Hand?
Mar 4, 2013 Political
In 2011 Barack Obama came up with the idea of the sequester. The plan was to force Congress to come up with a financial plan or each side’s top programs would get cuts. The idea was that Republicans would not want to see cuts to Defense and Democrats would not want to see cuts to social programs and other non defense agencies so they would all come together, sing Kumbaya and come up with a plan.
The election fell in between and Obama and his Democrats could not address the issue because they wanted tax increases that they could not tout if they wanted to keep their positions. Obama wanted to win a second term so he could not talk about his radical plans or he would lose.
Republicans felt sure that Romney would win and they would take the Senate so they could undo the damage caused by years of stupidity from both sides.
Romney did not win and the time for the sequestration cuts was rapidly approaching. Both sides worked against each other in an effort to fix the mess they created. At the last minute a deal was struck that increased taxes immediately for high income earners and pushed the sequestration cuts off until March First. John Boehner took heat for allowing the tax increases and he should but looking at it now his move might have been a good one.
If sequestration had taken place at the beginning of the year then ALL of the Bush era tax cuts would have gone away. This means there would be tax increases on everyone. Yes, even though Democrats have been screaming that the Bush tax cuts were for the rich they were forced to admit that everyone would be affected if the tax cuts went away.
The reality that the tax increase would hit the middle class and that Republicans would be blamed forced Boehner and Republicans to allow taxes to increase on about 2% of wage earners. At the same time, the deal made the Bush tax cuts for the other 98% permanent. This means that a tax increase on the middle class cannot be held over the heads of the Republicans. They are now in a stronger position to bargain because only a direct act to raise taxes on the middle class can make that happen. No matter what happens, inactivity or allowing the sequester to proceed will not cause taxes on the middle class to go up.
Sure, hundreds of thousands of the middle class will be affected by the sequester but that is by design. The White House came up with sequester and the cuts associated and the White House is ensuring that those cuts directly harm people so that those people will get upset with Republicans and hold them accountable. The Democrats need people to be miserable or they will realize that government is too big and cuts are not a bad thing.
This is why the cuts are taking place in a fashion that will cause direct harm to people and programs that directly involve people.
There is a lot that can be cut that would not harm people but that would not accomplish what Democrats want, direct dependence on government.
In any event, the average person will feel little affect from the cuts. Many federal employees will as will those who depend on services like meals on wheels. But, for the most part, the average person will notice little disruption in their lives.
Other than, of course, the disruption that has been with us since Obama first took office.
Democrats got their tax increase and were to bargain in good faith for spending cuts. They did not (which is not a surprise). Now they are screaming for more tax increases on the wealthy. They talk about closing loopholes (government speak for parts of the tax code people use to pay less in taxes, parts that Congress put there in the first place) and increasing rates on an even larger pool of wealthy taxpayers but refuse to discuss cutting. They want tax increases NOW and cuts sometime in the future.
Republicans are having none of that and are, so far, standing firm on their stance that there will be no more revenue (government speak for taxes). The Republicans do not have to worry now about an automatic tax increase on the middle class because the Bush cuts were made permanent so they have the upper hand.
Democrats might have overplayed their hand because they thought once Republicans allowed a tax increase in December they set a precedent and would cave again.
It is possible that Boehner gave his party a stronger position by allowing a tax increase on the top 2%. Democrats cannot hold that ax over the heads of the Republicans and must now gin up anger within the base in order to get things done.
So far the public has not been in much of an uproar and it looks like Democrats are scratching and clawing in order to get tax increases.
The sequester will begin to hit harder in the next few weeks and then we hit the end of the last continuing resolution. Boehner and his party might be in the driver’s seat because he took the wild card, tax cuts on the middle class, away from the Democrats.
It is time for Boehner to step up and rule with an iron fist. It is time for tax reform and spending cuts. He has the weapons at his disposal.
Because no matter what, Obama will ultimately be held responsible for any disaster that takes place in the coming months.
His stenographers in the media will try to deflect the blame but many Americans are paying attention each day (though we will never be rid of the low information voters).
Democrats toasted the tax increase while bringing in the New Year but they might have given away their bargaining chips in the process.
Related:
Politico
Cave canem!
Never surrender, never submit.
[jpsub]
Tags: boehner, lies, middle class, Obama, sequester, tax cuts, tax increases
Vote Down The Tax And Spend Bill
Dec 13, 2010 Political
The extension of the tax rates issue before Congress is heading toward critical mass because Democrats failed to address the issue prior to the election. Now it is up to the Lame Duck Congress to right the ship before tax increases take place next year. The problem is that the Democrats want to extend the rates only to the middle class while raising the tax rates for the wealthy (defined as those making more than $250,000 a year).
This is nothing more than classical class warfare. The Democrats will be the first to tell us that things were rosy when Bill Clinton was in office. Well, when he was in office the tax rates for everyone was higher. If they truly want to get back to what they perceived as a wonderful time then they should let the tax rates expire and raise taxes on everyone. Then the rates that supposedly brought us prosperity will once again be in place and we will have a wonderful life and Democrats can sing Happy Days Are Here Again.
Tax cuts increase revenue to the Treasury because people are able to keep more of what they earned with their blood, sweat and tears. They can keep the fruits of their labor and then spend the money and produce a vibrant economy. No nation has ever taxed itself to prosperity.
The issue here is nothing more than class warfare where Democrats pit the so called wealthy against the middle and lower classes. This is right out of the Democrat playbook and it is how they keep some members of society on their plantation. Stick with us folks and we will give you other people’s stuff. The unfortunate thing is that we have allowed people to grow up with an entitlement mentality. They feel they are entitled to the money of others. They even call the stuff they get entitlements even though they are forced redistribution of wealth.
The plan put forth is bad. It extends the tax rates (no cuts are made) for two years at which time this fight will reemerge. This is a short term and short sighted solution to the problem which will still leave doubt and uncertainty in the minds of the people who drive our economic machine.
To top it off, the deal comes with increased spending which will add to the deficit. Billions of dollars in spending is included in this plan and that is not good.
To further add insult to injury, the estate tax rate will increase by 35%. Currently, the rate is 0% so people who died (or will) this year were able to pass their wealth, wealth they have paid taxes on while it was being accumulated, without their heirs being socked with a huge tax bill. The deal will allow the government to take 35% of any estate over $5 million. This is a crime and should not be tolerated. What right does the government have to the money that a person accumulates for his heirs? NONE!
Smart planners do things before they die to keep this from happening but they should not have to do so. The government should not be taking this money. It was taxed at least once (and more likely several times) as it was accumulated. The government thinks it has the right to rape people after they are dead.
This deal is a bad deal and Republicans should not even be negotiating. They should tell Obama and the Democrats that the tax rates are to be extended permanently and that is the end of the story. Nothing added to the bill, no spending allowed, no add ons, no estate tax increases, no nothing.
If Obama does not like that then he should remember the words he used when he failed to negotiate with or include Republicans in his prior agenda, we won. It was Obama who made it clear that he was doing things the way he wanted because; “I won.” Well now we won and he will just have to deal with it.
Tax rates permanent or not at all. Let him and his Democrats face the public for allowing the rates to increase. They failed to do anything before the election and now they have to face the consequences of the last election and those consequences are, we won.
Remember, it was the Democrats who kept reminding us that elections have consequences so they would do well to remember that now.
As for the tax rates, they all get extended or none of them do.
If they all end up increasing then Democrats can look forward to the happy days they experienced under Bill Clinton. The old rates are his and Democrats think we did great under them so let’s raise them all.
Let us also keep in mind that Democrats always called the Bush tax cuts tax cuts for the rich. They have never acknowledged that the middle class got a tax cut. When they were running for office none of them ever said anything about the middle class. No, these were all tax cuts for the rich.
So let them expire because it will only affect the rich.
Funny though, the Democrats have always harped on how terrible the Bush tax cuts were but now Obama and Clinton (the co-presidents) are saying that this plan is what we need to stimulate the economy.
So once again, all or nothing. Let the rates go up. Obama will be a one term wonder and the country will be in the dumper and America will finally see what a failure Democrat economic policies really are.
Related:
The Hill
Cave Canem!
Never surrender, never submit.
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Tags: bad deal, Clinton, lies, Obama, tax cuts, tax increases
Obama Admits He Was Lying
Jun 21, 2010 Political
Obama, through actions by his regime, has admitted that he was lying but exactly when he lied is a matter of how things are interpreted. Obama either lied when he was campaigning or he lied when he was ramming the health care bill through and the regime is making the case that Obama actually lied BOTH times (which is what I believe).
First some background. During the campaign Barack Obama said he would not increase taxes on the middle class. Those making below a certain amount of money (the exact amount is really unknown because it changed regularly but it is anywhere from $120,000 to $250,000 per year) would not see their taxes increased. That is the first important item to know, Obama promised not to increase taxes (not one dime) on the middle class.
The second thing to know is that during the health care debate Obama vehemently defended the individual mandate and said that any fine levied against those who did not buy insurance was not a tax. Obama was even very condescending to George Stephanopoulos of ABC when George brought up the issue and said it was a tax. Obama chastened him about looking up a word in the dictionary and proclaimed that the individual mandate was absolutely not a tax regardless of what Stephanopoulos or anyone else said.
By God, Barack Obama has decreed it is not a tax now just shut up about it George and move on.
So the health care bill passes and Obama signs it into law and almost immediately a number of lawsuits are filed questioning the Constitutionality of the mandate. The arguments have been made on this point and I will not rehash them here except to say that many scholars believe that Congress overstepped its bounds by claiming it could regulate a person who engaged in NO commerce under the commerce clause.
Evidently, the Obama regime thinks there is something to this argument, which if successful would derail the legislation and the bogus claims of low costs and deficit reduction. The regime is trying to have the case against the health care law dismissed. Now this is nothing unusual because parties try to do that all the time. If it works they do not have to defend the issue but in this case I cannot imagine a judge throwing it out because of the magnitude of the issue.
In any event, the fact that the regime is trying to get it dismissed is not unusual but the grounds they are using for the dismissal are.
The regime is arguing that the law does not allow for suits regarding the assessment or collection of TAXES.
Late last night, the Obama Department of Justice filed a motion to dismiss the Florida-based lawsuit against the health care law, arguing that the court lacks jurisdiction and that the State of Florida and fellow plaintiffs haven’t presented a claim for which the court can grant relief. To bolster its case, the DOJ cited the Anti-Injunction Act, which restricts courts from interfering with the government’s ability to collect taxes.
The Act, according to a DOJ memo supporting the motion to dismiss, says that “no suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court by any person, whether or not such person is the person against whom such tax was assessed.” The memo goes on to say that it makes no difference whether the disputed payment it is called a “tax” or “penalty,” because either way, it’s “assessed and collected in the same manner” by the Internal Revenue Service. [all emphasis mine] The American Spectator
Uh oh. Looks like there is trouble right here in River City my friends. The Obama regime is now saying that the fine for failing to buy insurance is a TAX even though the almighty Barack Obama scolded George Stephanopoulos and flat out told him that this was not a tax.
So there you have it ladies and gentlemen, Barack Obama said it was not a tax when he wanted it to pass and he is saying that it is a tax now that it needs to withstand judicial scrutiny. Obama either lied to get it passed or he is lying to keep it out of court. Obama knew that calling it a tax would make members of Congress uneasy in an election year and he now knows that unless he calls it a tax it will have a tough time withstanding the court challenge. He is a liar and he will say or do anything to get what he wants.
Remember, if it is such a good thing they would not need to lie about the costs and they would not need to lie about how it is funded. All of the lies and manipulations clearly show this is a bad piece of legislation.
This is the kind of dishonest person Obama is and the kind of dishonesty that he expects when he is playing politics as usual, another thing he promised he would not do and, as it turns out, another broken promise.
There is one other unusual thing going on here. If Obama succeeds in portraying this as a tax and the court rules in his favor then he will have broken a huge campaign promise. Keep in mind that this mandate will affect the middle class the most. The poor will receive subsidies but the middle class will be forced to buy insurance more than any other and that means Obama will have imposed a huge tax increase on them. If he wins the argument that this is a tax then he will be admitting that he raised taxes on the middle class, something he said he would not do. Or as the cited article puts it:
Put another way, the administration is now arguing in federal court that Obama signed a massive middle-class tax increase, in violation of his campaign pledge.
Wouldn’t it be ironic if Obama’s own words about this not being a tax were used against his regime and the court ruled that Obama said it was not a tax so he can’t call it one now? Wouldn’t it be even more bizarre if he lost that argument, lost the case and still had to answer to the public as to why he deceived them by saying it was not a tax and then argued that it was?
Obama is a liar and a thief. He will steal money from those who make it and give it to those who do not. He leads the party of parasites (tolerant ones at that) and he is more than willing to continue to suck the life-blood out of our country in order to fulfill his dream of making it a Socialist nation.
How much more do people need to see to understand that Obama is a hack, an inexperienced man-child, a person who is automatically the least experienced of any person in a room he enters and that he is more interested in playing golf, partying, spending tax dollars on his parties, and working to bang through a Socialist agenda?
How much more do you people need to see that this guy is an inexperienced poser who can’t lead?
This incident should awaken you. He will say and do anything to get what he wants.
How is that hope and change working for you now?
Never surrender, never submit.
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Tags: hack, health care, lies, Obama, political games, tax increases
Well 23rd District New York; Are You Happy Now?
Nov 8, 2009 Political
Democrat Bill Owens was elected to the Congress in New York’s 23rd District last week and he wasted no time breaking four campaign promises. Democrats rushed him in so they could obtain his vote on health care, one he said he would not give. He voted yes when the bill was passed in the dead of the night (once again a bill passed under cover of darkness). It was pointed out that just before the election he said he supported the bill (as it was written at that time) but had opposed the public option, something his constituents also oppose.
The other promises:
The House Health reform bill contains sections that cut Medicare benefits, tax existing health care benefits, and increases taxes on the middle class, yet Mr. Owens stated today that he will now vote in favor of those things contrary to what he had promised the voters of NY’s 23rd Congressional District that he would vote against. The Gouverneur Times
The article points out that the bill will also provide benefits for illegals, a compromise to placate the Hispanic Caucus and in direct opposition to what Obama said in his speech to the Joint session of Congress. The was the speech where Joe Wilson yelled; “You lie!”.
Turns out Wilson was right and Obama will continue to be a liar because there is no way he will veto the bill should the illegal immigrant issue survive the Senate.
Owens was not in office for more than a few days when he broke four campaign promises. Hoffman would have opposed the bill and looked out for constituents. Owens decided he wanted a short lived Congressional career by instead lying to them.
Democrats will say and do anything to get into office. Look at all the promises Obama has broken. He lied and it would appear that, as with Obama, Owens’ promises have a shelf life as well.
Sadly, the people of New York’s 23rd voted for a pig in a poke. Will people never learn?
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Tags: bill owens, health care, illegals, lies, Obama, tax increases
We Are The Hog
Sep 24, 2009 Political
And Government Lives High On Us
Barack Obama pledged not to raise taxes on the middle class and vowed that 95% of the people would not see a tax increase. He failed to mention that 40% pay no income taxes and he failed to say how he would keep that pledge when all the money the rich have is not enough to pay the bills. Obama made it clear that he meant ALL taxes though there are a few people who quickly say it was all about income taxes and that the 40% pay taxes because they pay into Social Security and Medicare. It is only fair for them to pay these items because they will benefit from them in the future. It is equally true that they should be paying income taxes because they consume more tax dollars than the wealthy. Everyone needs skin in the game to understand the impact of out of control government spending.
Amazingly, one of the major network anchors asked Obama about his tax pledge (when Obama went on the MSM tour):
CBS: “Now you promised during the campaign (you promised) no tax increase on people who made under 250,000 dollars, no payroll tax, no capital gains, no tax of any kind on Americans. Can you still make that promise to people today?”
Notice that the CBS interviewer says NO TAXES OF ANY KIND.
Obama has raised taxes on tobacco. One can debate the health issues associated with tobacco use but that is not the point. Government claims this is to get people to stop (or never start) but government depends on the taxes from tobacco sales and it knows that very few people will quit, and if they do, government will need to get the money it loses in tobacco tax from someplace…
The middle class will get socked with taxes if the Obama health care takeover plan passes. The bill contains a tax on medical items. This tax was originally on all medical items (including tampons, condoms, and Q-Tips) but the language was changed to only include medical items that cost more than $100. This is one of the ways government will fund health care. The tax will be passed on to consumers of health care via their premiums (or co-pays) and if they pay for items out of pocket they will bear the entire burden of the tax. In the state of Maryland medical items are tax exempt so this will not be a tax increase, it will be an entirely NEW tax and those who buy medical supplies (like diabetics and those on dialysis) will end up paying those taxes.
There are many other problems with the tax because it will apply to medical devices that are manufactured and sold. Pacemakers are expensive now but will cost more when the tax is added (as will tens of thousands of other medical devices). Those costs will be passed on and the middle class will absorb them.
The trick here is that they are hiding it as a tax on devices and it has already been stated that the goal is to make it look like there has been no middle class tax increase. The trickery is designed to hide the fact that the increase will hit the middle class.
Obama promised that there would be no taxes on the middle class and he lied. The taxes have already been increased on tobacco (which affects the lower and middle class the most) and if this health care bill passes the medical devices worth more than $100 will add to the burden.
Seniors, he sold you out to AARP and you youngsters will be forced to get health care insurance or pay a fine. This is a tax on you no matter how you look at it. You will also pay higher premiums than your age would indicate to pay for those who are older than you.
How is that Hope and Change working out for you now?
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Tags: health care, lies, Obama, tax increases, tobacco