Republicans have finally found a group they think deserves a tax hike: People who don’t make enough money to pay income taxes.
At the recent GOP debate, all the 2012 presidential hopefuls were unanimous in claiming they would reject a deficit-reduction deal if it contained a 10-to-one ratio of spending cuts to tax increases. But as Dave Weigel writes, the GOP’s supposed anti-tax zealots have been strangely unified in arguing that Americans who pay no income taxes — but pay a variety of other taxes — should see their taxes go up:
Republican politicians didn’t make this argument — until the Obama era. What changed? For decades, the “lucky ducky” number, the percentage of Americans that pay no taxes, never rose above 30 percent. The Bush tax cuts pushed it over 30 percent, but not too far over. Then, in 2008 and 2009, the economy collapsed. The government responded with, among other things, new tax deductions.
The result: The percentage of people paying no income taxes spiked up to 47 percent and stayed there. When the Tea Party started rallying in 2009, it wasn’t protesting higher taxes, because federal income taxes were lower, with more loopholes. It was protesting the perception that productive Americans were shelling out for an ever-expanding class of moochers. And Republicans have taken the Tea Party’s lead.
Of course, as Weigel reminds us, these people do pay sales taxes, payroll taxes, gas taxes and the like. As an April 2010 report from Citizens for Tax Justice explained: “Most of these other taxes are regressive, meaning they take a larger share of a poor or middle-class family’s income than they take from a rich family. This largely offsets the progressivity of the federal income tax.” Fat City!
This tax-the-poor attitude is widely held among Republicans, who are currently positioning themselves to oppose an extension of the payroll tax credit. After having demanded Obama extend the Bush tax cuts for the wealthiest Americans, Republicans are now fretting that the payroll tax cut will increase the deficit. Extending the Bush tax cuts increased the debt by far more than an extension of the payroll tax cut will, but that was worth it, because cutting taxes on the wealthiest Americans is the GOP’s highest priority. It’s far more important than stimulating the economy by giving a tax break to people who might actually need the money.
Of course, we’re not supposed to call the GOP’s commitment to making sure the wealthiest Americans pay as little as possible in taxes — and to increasing taxes on lower income folks — by its rightful name: “Class-warfare.” That term only applies to socialists who think we ought to return to Clinton-era tax rates.
By: Adam Serwer, The Washington Post, August 23, 2011
August 24, 2011
Posted by raemd95 |
Class Warfare, Congress, Conservatives, Economic Recovery, Economy, GOP, Government, Ideologues, Ideology, Income Gap, Lawmakers, Middle Class, Politics, Republicans, Right Wing, Tax Loopholes, Taxes, Teaparty, Wealthy | Anti-Tax, Debt, Income Taxes, Payroll Tax Credit, Poor, Regressive Tax, Sales Taxes, Spending Cuts, Tax Increases, Tax Revenues |
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Eric Cantor’s op-ed laying out the Republican agenda is filled with the kind
of distortions you’d expect, but this passage deserves special commendation.
After decrying a National Labor Relations Board Ruling, he continues:
Such behavior, coupled with the president’s insistence on raising the top tax rate paid by individuals and small businesses, has resulted in a lag in growth that has added to the debt crisis, contributing to our nation’s credit downgrade.
So Cantor is arguing that S&P downgraded U.S. debt because of President
Obama’s future plans to increase the top tax rate. That’s such a mind-boggling
claim that even Cantor cannot bring himself to put it in quite these terms. So
instead he breaks it into a series of steps.
First, he claims that the future promise of upper-bracket tax hikes “has
resulted” in a lag in growth. (Question: if the mere possibility of future tax
hikes is enough to depress growth, why don’t we go ahead and just raise taxes?
If we’re going to get the slower growth anyway, might as well get the revenue,
right?)
Second, the lag in growth “caused” by hypothetical future tax hikes added to
the debt crisis.
Third, the debt crisis contributed to the downgrading of the debt.
It’s a fairly brilliant bit of rhetoric. After all, S&P specifically cited the Republican threat to fail to lift the debt ceiling and Republican refusal
to consider any tax increases as the cause of the downgrade. cantor has
found a way to present Obama’s support for higher taxes as the cause of the
downgrade. That’s so brazen I almost have to admire it.
By: Jonathan Chait, The New Republic, August 22, 2011
August 23, 2011
Posted by raemd95 |
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Wealthy Americans will recoil at the suggestion, likely responding with the tired mantra that the top earners pay most of the income tax. But two points can be made in response to that: (1) federal income tax is only a small part of the burden on the middle class.
Based on data from the Institute on Taxation and Economic Policy, the total of all state and local taxes, social security taxes, and excise taxes (gasoline, alcohol, tobacco) consumes 21% of the annual incomes of the poorest half of America. For the richest 1% of Americans, the same taxes consume 7% of their incomes. And (2) the richest people pay most of the federal income taxes because they’ve made ALMOST ALL the new income over the past 30 years. Based on Tax Foundation figures, the richest 1% has TRIPLED ITS SHARE of America’s income since 1980, AFTER TAXES.
But there are better reasons why the rich should pay higher taxes.
The very rich benefit most from national security, government-funded research, infrastructure, and property laws. Defending the country benefits the rich more, because they have more to defend. Taxpayer-funded research at the Defense Advanced Research Projects Agency (the Internet), the National Institute of Health (pharmaceuticals), and the National Science Foundation (the Digital Library Initiative) has laid a half-century foundation for their idea-building. The interstates and airports and FAA and TSA benefit people who have the money to travel.
Over a hundred years ago, Teddy Roosevelt, facing an epidemic of inequality not unlike today, reminded us that “Great corporations exist only because they are created and safeguarded by [democratic] institutions; and it is therefore our right and our duty to see that they work in harmony with these institutions.”
Here’s another good reason for the rich to pay more taxes: With the drop in tax revenue, funding for the preservation of American culture is disappearing. Do we want our national treasures deprived of maintenance because of budget cuts, as is currently happening in Italy? Do we want our national parks sold to billionaires? Do we want programs for music and the arts eliminated from schools, so that only children of the wealthy can participate in them?
The 1912 book “Promised Land” by Mary Antin revealed the wonder of a Russian immigrant coming to the U.S.: “In America, then, everything was free…light was free…music was free.”
Not that capitalist markets don’t have their place. But the current view of democracy has gone to the other extreme, in which individualism and personal gain trump societal responsibility, and growing inequality makes community support and safeguards unnecessary for the privileged elite.
Finally, back to the tax statistics. Why should financial earnings (i.e., capital gains) be taxed less than wage earnings from actual work? The richest 10% of Americans own over 80% of the stocks, the gains from which are taxed at a 15% rate. Most wage earners pay more.
Furthermore, over the past 15 years millionaires have seen their income tax rates drop from 30% to 22%. During approximately the same time period, American economic growth declined from an annual 3.2 percent rate to 1.7 percent. Lower taxes for the rich do not lead to productivity.
Will the rich stop investing or move to another country if their taxes are increased? Not likely. They have it too good here. As Warren Buffett recently stated, “I have worked with investors for 60 years and I have yet to see anyone – not even when capital gains rates were 39.9 percent in 1976-77 – shy away from a sensible investment because of the tax rate on the potential gain.”
Mr. Buffett is admitting what everyone else is beginning to realize. The rich take much more than they pay for.
By: Paul Buchheit, CommonDreams.org, August 22, 2011
August 23, 2011
Posted by raemd95 |
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After Gov. Scott Walker, a Republican in his first months in office, announced early this year that he wanted to cut collective bargaining rights for public workers, relations between political parties in his newly red State Capitol fell into a long, deep frost.
But after six months of bruising partisan fights, Mr. Walker seemed to issue an utterly different message this month. He said he wanted to meet with Democrats and to find shared agenda items — an invitation that has been met with polite acceptance and deep skepticism.
“My thought is, you start out with small things, you build trust, you move forward, you keep working on things and you try and pick as many things that are things that people can clearly work together on,” Mr. Walker, who may face a recall election next year, said in an interview.
In the months after a flurry of Republican wins of governors’ offices and state legislatures in 2010, perhaps nowhere was the partisan rancor more pronounced than in the nation’s middle — places like Wisconsin and Ohio, where fights over labor unions exploded. But now, at least in those states, there are signs that the same Republicans see a need to show, at least publicly, a desire to play well with others.
In both states, critics dismiss the moves as desperate attempts to shore up sinking popularity ratings or disingenuous, tardy strategies to appear agreeable after already ramming through their agendas.
“It’s all P.R. — none of it is substantive,” Mark Miller, the Democrats’ minority leader in the Wisconsin State Senate, said earlier this month, before Mr. Walker held what some described as a “cordial” meeting with the Democratic leaders last week.
Whatever the true substance of the offers, the recent tones in Ohio and Wisconsin do appear to show one thing: With threats of recalls and bill repeals, with public dismay in recent months over the partisan stalemate in Washington on the debt ceiling, and with battleground-state presidential politics looming in 2012, governing with majorities has turned out in some states to be more complicated than it may have first appeared.
Across the nation, partisan relations in statehouses where Republicans made significant gains last fall have varied widely, and in many cases there are no signs of softening messages — or even the need for such a thing. But leaders in other states, including some that are expected to consider limits to unions in the months ahead, are closely watching what unfolds now in Ohio and Wisconsin, the states that became the unexpected battle zones for an earlier season of discontent.
In Columbus, Democrats and union leaders were enraged this year when Gov. John R. Kasich, another first-term Republican governor, and the Republicans who now control both chambers of the legislature pushed through — mostly along partisan lines— a law that would limit the rights of public workers to bargain collectively.
Republicans in Ohio advocated for the measure as the logical response to shrunken budgets in towns, cities and counties. But union leaders and Democrats — and a group calling itself We Are Ohio — spent months collecting more than 900,000 valid signatures (hundreds of thousands more than needed) to put the law to a vote in a statewide referendum in November. A campaign, which is expected to draw significant interest and spending from political groups in Ohio and nationwide, is likely to begin in earnest soon.
Last week, Mr. Kasich and Republican leaders sent a letter to the union organizers, calling for a meeting to discuss a compromise. The leaders said they still believed in the law they had passed, and a spokesman for Mr. Kasich would not say precisely what areas the Republicans were willing to give in on. “We are prepared to move forward immediately with legislative action to implement any agreement on changes we are able to reach together,” the letter read.
“We ought to get to the table and we ought to talk about it,” Mr. Kasich told reporters on Friday, meeting with them in a room full of empty seats and placards for the absent organizers, although the organizers said they had turned down the invitation. “Is it too late?” Mr. Kasich asked. “It’s never too late.”
Rob Nichols, a spokesman for Mr. Kasich, said the new invitation did not mark any shift in Mr. Kasich’s approach; the governor had sought to talk to labor groups during the legislative fight, Mr. Nichols said, and some representatives had engaged in private discussions over the issue again in June before the unions ended those talks, he said. “He, more than most, has a long history of working across party lines,” Mr. Nichols said.
But critics balked at the notion that any real talks had been offered before or that any true, concrete compromises — not just photo opportunities for a public fatigued by partisan rancor — were being offered now.
“If they’re honestly coming forward for a compromise, repeal the bill and then we’ll talk,” said Melissa Fazekas, a spokeswoman for We Are Ohio, explaining why representatives for the group had declined to meet with Mr. Kasich on Friday. “If they wanted to get along, they probably should have tried to during the legislative process instead of locking people out.”
In Wisconsin, partisan relations — and that state’s fight over limits to collective bargaining — have proved still uglier.
In the weeks after Mr. Walker proposed the limits in February, state lawmakers, newly dominated by Republicans in the Capitol, split in two. The minority Senate Democrats fled the state to try to block a vote on the measure. The Republicans issued the lawmaking equivalent of warrants against them, and at one point, threatened that the Democrats had to collect their paychecks in person — or not get them at all. And, as protesters screamed outside his closed office door, Mr. Walker firmly defended the bargaining cuts and said his administration was “certainly looking at all legal options” against the other party.
But after a summer of expensive, brutal recall election efforts against nine state senators — Democrats for having fled the state, and Republicans for having supported the bargaining cuts — Mr. Walker seemed to be sounding a different, softer note. He said he had called Democratic leaders in the Legislature even before the polls closed in some of this month’s recalls, which, in the end, maintained the Republican majorities in both legislative chambers, though by a slimmer margin of 17 to 16 in the Senate.
Democrats in the state had harsh theories about what was behind Mr. Walker’s sudden wish to get along. Some said he had already accomplished a stunningly partisan agenda, including the bargaining cuts, an austere budget, a voter identification law, a concealed-firearms provision and a redistricting map that favored Republicans, and was now hoping to appear to be reaching out. Others said he feared a different recall election effort — against him — next year, as well as creating a drag in the state on any Republican presidential ticket.
“This is totally phony — a totally unbelievable act of desperation,” said Graeme Zielinski, a spokesman for the state Democratic Party. “It will fade away and return soon enough to the scorched-earth method that has marked his career.”
Reflecting on the start of his term, Mr. Walker said that he wished he had spent more time “building a case” with the public for why collective bargaining cuts could shore up budgets, but that he remained a firm supporter of the cuts themselves — a fact that seems certain to complicate any effort for bipartisanship now.
“I’m not thinking that just because we snap our fingers that suddenly everybody’s going to run out and work together and it’s all going to work perfectly,” the governor said.
By: Monica Davey, The New York Times, August 21, 2011
August 22, 2011
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With the Battle of Wisconsin reaching a temporary lull after the recent recall elections, attention is shifting to another midwestern state, where opponents of recently enacted union-bashing legislation have far exceeded the threshold of petitions needed to get a referendum repealing the measure on a November ballot.
With polls consistently showing Ohio voters favoring the repeal initiative (by 50-39 in a new PPP poll, and by larger margins in earlier polls), Gov. John Kasich and Republican legislative leaders are suddenly asking for meetings to seek a compromise on Senate Bill 5, which was enacted in March on a party-line vote.
Kasich hurried to sign the bill soon after it passed in order to force opponents to seek a referendum this year rather than in the higher-turnout 2012 presidential cycle.
But now Republicans are seeking to head off the referendum, or (since SB 5 opponents have made it clear that total repeal of the bill is a precondition to talks about how it might be replaced with compromise legislation) more likely, trying to strengthen their hand in the referendum fight by appearing reasonable. It’s a little late for that.
So the referendum fight is fully on, and as November approaches, you can expect the kind of national labor/progressive coalition that mobilized for the Wisconsin recalls to focus on Ohio.
By: Democratic Strategist Staff, August 19, 2011
August 19, 2011
Posted by raemd95 |
Businesses, Class Warfare, Collective Bargaining, Conservatives, Democracy, Democrats, Elections, GOP, Gov John Kasich, Government, Ideologues, Ideology, Jobs, Labor, Lawmakers, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Teaparty, Union Busting, Unions, Voters, Wisconsin | Anti-Labor, Anti-Union, Ohio, Ohio Democrats, Ohio Legislature, Ohio Republicans, Ohio Senate, Ohio Senate Bill 5, Public Referendums, Recall Elections |
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