Category Archives: Bush tax cuts for the rich
Also notable is the fact that this 21-page, full of horseshit and not much else, document was put together by a House staffer who, up till April 2010, served as a lobbyist for some of the nation’s most powerful oil, pharmaceutical, and insurance companies, per this CommonDreams.org writeup. From the CommonDreams article:
In a draft version of The Pledge that was being passed around to reporters before the official release, the document properties list “Wild, Brian” as the “Author.” A GOP source said that Wild — who is on House Minority Leader John Boehner’s payroll — did help author the governing platform that the party is unveiling on Thursday. Another aide said that as the executive director of the Republican leadership group American Speaking Out, Wild’s tasks were more on the administrative side of the operations.
Until early this year, Wild was a fairly active lobbyist on behalf of the firm the Nickles Group, the lobbying shop set up by the former Republican Senator from Oklahoma, Don Nickles. During his five years at the firm, Wild, among others, was paid $740,000 in lobbying contracts from AIG, the former insurance company at the heart of the financial collapse; $800,000 from energy giant Andarko Petroleum; more than $1.1 million from Comcast, more than $1.3 million from Exxon Mobil; and $625,000 from the pharmaceutical company Pfizer Inc.
Gee, ain’t that a friggin interesting factoid m’dear reader? And isn’t it ironic that he works for John Boehner, the fake-tan man who probably farts orange and is one of the Deans of Wingnut University aka Nutter U.
“Pledge to America” Not as Fiscally Responsible as It Claims-Core Policies Would Increase the Federal Deficit and Debt
Republicans in Congress released “Pledge to America” today, a plan they characterize as laying out a “new governing agenda.” Integral to that plan is a new commitment to “fiscal responsibility.” Our analysis, however, shows that implementing the plan’s proposals would increase the federal budget deficit and accelerate growth in federal debt.
The “Pledge to America” budget would mean $11.1 trillion in deficits over the next 10 years. By 2020, the federal budget deficit would be 6.3 percent of gross domestic product, the federal debt would exceed 93 percent of GDP, and interest payments on the debt would be more than $1 trillion a year. The budget deficit would be about $200 billion larger in 2020 under the “Pledge to America” plan than it would be under President Barack Obama’s budget, and over the next 10 years deficits would be $1.5 trillion higher than under the president’s budget.
The substantial increase in deficits under the “Pledge to America” budget are due to the significant tax cuts that come from extending all expiring tax provisions and the implementation of several new tax cuts. Altogether, tax revenues under the “Pledge to America” plan would average 16.7 percent of GDP. During the last period the federal government ran balanced budgets revenues averaged 20 percent of GDP.
The CAP article lays out all the bogus bullshit the Rethugs are trying hard to pass off on the American voters. The GOP must really believe we are all as dumb as Sarah Palin.
And of course it contains a repeal of the health care reform act, known as the Affordable Care Act, Obama’s congress passed this year…without an ounce of Rethug support I might add.
So, check out the Cap piece for ammo when your rightwing nutter friends or relatives try to tell you just how fucking great this piece of shit really is.
When the video, from his Countdown appearance tonight,(alert, its at the bottom of this post) is available I will post it…until then, here is RR’s post from his blog today on the topic of Bush’s tax cuts for the rich and how full of shit the rightwing nutters are on this issue:
The economy is slouching backward because consumers can’t and won’t spend enough to revive it. Congress is about to recess for the summer without doing anything to fill the gap. And it looks like the only issue it will be debating when it returns is who, if anyone, should pay more taxes next year – just the very rich, everyone, or no one? The cuts enacted by George W. Bush will expire in January, and with midterm election pending in November we’re about to be treated to months of tax demagoguery.
Here’s a guide to the perplexed.
From a strictly economic standpoint – as if economics had anything to do with this – it makes sense to preserve the Bush tax cuts at least through 2011 for the middle class. There’s no way consumers – who comprise 70 percent of the economy – will start buying again if their federal income taxes rise while they’re still struggling to repay their debts, they can’t borrow more, can no longer use their homes as ATMs, and they’re worried about keeping their jobs.
But the same logic doesn’t apply to people at the top, earning over $250K, who represent roughly 2 percent of tax filers. Restoring their marginal tax rates to what they were during the Clinton administration (36 and 39 percent) won’t inhibit their spending. That’s because they already save a large portion of what they earn, and already spend what they want to spend. (During the Clinton years the economy created 22 million net new jobs and unemployment dropped to 4 percent.)
But restoring those top marginal tax rates will help bring down the long-term debt, pulling in almost a trillion dollars of revenues over next ten years. That’s not nearly enough to make a major dent in the nation’s projected deficits, but it’s not chicken feed either. It would at least signal to financial markets we’re serious about cutting that long-term deficit – and the rest of us will chip in when the economy strengthens.
So-called supply-side economists don’t like raising taxes on anyone, of course, and argue that raising them on the well-off will slow economic growth. They say people at the top will have less incentive to work hard, invest, and invent.
Unfortunately for supply-siders, history has proven them wrong again and again. During almost three decades spanning 1951 to 1980, when America’s top marginal tax rate was between 70 and 92 percent, the nation’s average annual growth was 3.7 percent. But between 1983 and start of the Great Recession, when the top rate was far lower – ranging between 35 and 39 percent – the economy grew an average of just 3 percent per year. Supply-siders are fond of claiming that Ronald Reagan’s 1981 cuts caused the 1980s economic boom. In fact, that boom followed Reagan’s 1982 tax increase. The 1990s boom likewise was not the result of a tax cut; it came in the wake of Bill Clinton’s 1993 tax increase.
A final reason for allowing the Bush tax cut to expire for people at the top is the most basic of all. Although Wall Street’s excesses were the proximate cause of the Great Recession, its fundamental cause lay in the nation’s widening inequality. For many years, most of the gains of economic growth in America have been going to the top – leaving the nation’s vast middle class with a shrinking portion of total income. (In the 1970s, the top 1 percent received 8 to 9 percent of total income, but thereafter income concentrated so rapidly that by 2007 the top received 23.5 percent of the total.) The only way most Americans could continue to buy most of what they produced was by borrowing. But now that the debt bubble has burst – as it inevitably would – the underlying problem has reemerged.
Why make it worse? George W. Bush’s 2001 tax cut was a huge windfall for the wealthy. About 40 percent of its benefits went to the tiny sliver of Americans earning over $500,000. So rather than debate whether to end the Bush tax cuts for the top and restore the top marginal tax rates to where they were under Bill Clinton, we should be debating whether to raise the highest marginal tax rate higher than it was under Bill Clinton and use the proceeds to give the middle class a permanent tax cut.
I’m not suggesting this, mind you, but just to get the debate started: How about restoring the top rate to where it was under John F. Kennedy (76 percent), or under Dwight Eisenhower (91 percent)?
I really never re-post someone else’s entire work. But Reich makes so much sense, I hope to hell he doesn’t get pissed at me. We have conversed, via email, in the past and he gave me permission to re-post his writings…so I am using that for this specific issue. I love that man, he breaks it down for yahoo’s like moi to understand.
Beloww is Ezra Klein’ pov on the same fuckery:
How dumb is the general voting population on this horseshit? Only time will tell…