Tag: tax cuts
On Squawk Box, Mark Warner talks small business and extending tax cuts to the richest Americans. According to Warner, we should extend the Bush tax cuts to those making less than $250,000 per year, but if we extend the cuts to the richest of the rich, then "we're gonna lose all credibility that we're gonna be willing to take on the deficit." I couldn't agree more. Also, Warner makes an excellent point about the tax rates that existed during the 1990s, when the U.S. economy boomed:
I don't mind going back to the rates that I paid under Clinton and Bush 1, when I was in business, because frankly, my businesses prospered greatly during the '90s.Yes, they most certainly did, along with the rest of our economy. Why wouldn't we want to go back to that, especially when we've seen what the Bush/Cheney/Republican Congress policies did to us in the 2000s?
Talking Point 1: It's a Bush Tax Increase.
We here at BV all know that George W. Bush booby-trapped the Bush Tax cuts, which were set to expire on Dec 31, 2010. Our task is to reduce the revisionism of the radical wrong-wing. Bush's sordid economic legacy, including a false belief in excessive tax-cutting and lax economic oversight, resulted in the second worst financial collapse in US history. He turned the Clinton surplus into a looming budge deficit. He handed Obama a nightmare economyto sort out. The GOP is hoping enough Americans forget the facts that they can get away with scamming the middle class again.
GOPhers, along with some Conservadems, helped Bush bestow huge tax cuts to the wealthy. Then they helped Bush set an expiration date, in part, because tax cuts set in a reconciliation bill cannot be in effect more than 10 years. But there's another reason, which is down-right Rovian. BTW, remember that every time the GOPhers weep about Dems using reconciliation, or Dems refuse to use it.
By design, the expiration would reach well into what was predicted to be a Democratic resurgence, which tax-cut extremists could sabotage. The GOP talking points nearly wrote themselves.
I could also have entitled this diary, "Gerry Connolly repeats right-wing Republican talking points on the right-wing Republican propaganda channel." The only problem was, that title was too long for Soapblox. Heh.
Prince William County, Va. - Rep. Gerald E. "Gerry" Connolly, D-11th, and a handful of other Democrats have broken with their party to oppose letting the Bush tax cuts expire.To put it mildly, I strongly disagree with this. In fact, we're facing a $1.4 TRILLION deficit in 2010 and 2011 in large part because of the Bush tax cuts, largely for the wealthiest Americans. Continuing those tax cuts for the middle class, in the middle of a recession, is one thing. But continuing them for the wealthiest of the wealthy? That's why people vote for Republicans, to lavish riches on the top 1% while exploding the budget deficit and forcing painful choices on programs benefiting working Americans. That's not why we vote for - let alone phone bank, knock doors, etc. - for Democrats.
Connolly said the economy isn't stable enough yet.
"My reasons are fairly straight forward. I think we're at a very fragile point in the economic recovery. It's not as robust as we need it to be, and that means that timing is very important," Connolly said. "Allowing the tax cuts to expire on any income group right now, I think, would be counter productive and could do damage to a fragile economy."
Some of you may recall that in 2006, one of the main things I bashed Harris Miller about was that he told me he wouldn't even repeal the Bush tax cuts for the top 1% wealthiest Americans. That was the end of it for me with Harris Miller. So, let's just say I'm not thrilled with this move by Gerry Connolly, although obviously I'm not going to support Tea Partier/Kook-inelli BFF Keith Fimian. Also, as I mentioned earlier, Connolly has been excellent on many other issues I care about. But this one really pisses me off, especially given that Connolly has been so concerned about the deficit that he even "sent a letter to House Speaker Nancy Pelosi... signed by 13 other freshman Democrats urging the use of a 'substantial portion' of unspent or repaid Troubled Asset Relief Program funds to reduce the federal deficit." Yet now he's willing to blow a huge hole in the federal deficit for years to come, in order to reward a few thousands voters (or, more to the point, donors) in the 11th CD? Lame.
UPDATE: Connolly adds later in the article that he "wouldn't be perpetually opposed to letting the tax cuts expire," just "Not now." I still disagree. We need to start dealing with the deficit by not renewing unwise tax cuts for the top 1% of Americans. If not now, when? If not representatives like Gerry Connolly, who?
UPDATE #2: The White House is exactly right on this, "forc[ing] Republicans to defend tax breaks for a tiny, wealthy minority and expose GOP hypocrisy on budget deficits." Good, don't back down on this, White House!
Faux deficit hawks, who never found a dollar they wouldn't throw away, have suddenly find frugality. And to solve the fiscal problems we have, problems brought to fruition by incompetent GOP fiscal management, they aim to do the very things which further sink the economy, while at the same time killing job creation. They even want to kick the unemployed while they are down. "They are lazy," said one GOPher just this week.
As if that weren't enough, Jon Kyle argued this past weekend that you don't really have to pay for tax cuts. And Mitch McConnell claimed falsely that tax cuts increase revenue. As Rachel Maddow illustrates, Ezra Klein has called this magical thinking. In this segment, Rachel Maddow shows both the idiocy and the hypocrisy of the GOP tax-cut agenda and obstruction of economic strategies which work.