Takeover Thursdays – A Compromise to forget??

President Barack Obama

When the news 1st came down about the deal President Obama was supporting where Republicans will support a temporary extension of Middle Class Tax Cuts as long as tax cuts for the wealthiest 2% where also temporary extended I was upset but I was willing to give the president the benefit of the doubt.  I knew the president was breaking one of his key campaign promises but the idea of a compromise still sounded good as I knew the type of opposition the president was facing from Republicans.  So a compromise couldn’t be that bad right????

Well….

All that changed when I found out the price tag of this Tax Cuts Compromise; $900 Billion…

WTF!!!

So what exactly contained in this tax compromise

The GOP got around $95 billion in tax cuts for wealthy Americans and $30 billion in estate tax cuts. Democrats got $120 billion in payroll-tax cuts, $40 billion in refundable tax credits (Earned Income Tax Credit, Child Tax Credit and education tax credits), $56 billion in unemployment insurance, and, depending on how you count it, about $180 billion (two-year cost) or $30 billion (10-year cost) in new tax incentives for businesses to invest. – via Ezra Klein (Washington Post)

When you look at the details of the compromise Progressives will see that the deal favors Democrats as it includes many initiatives that Progressives have supported in the past (Child and Education Tax Credit, and Middle Class Tax Cuts, and extending unemployment benefits).  There are plenty things about the deal that I am happy about, the 13 month extension of unemployment benefits was a great move as this issue will not have to be revisited for a year.  The problem is not necessarily in the deal itself, its how we got to the point of making a deal that bothers me the most (along with price tag).

On September 12, 2010 soon to be Speaker of the House John Boehner (Republican) said the following on Face the Nation:

“If the only option I have is to vote for some of those tax deductions (Middle Class Tax Cuts), I’ll vote for them”

With that said, why would President Obama then turn around and offer the possibility of temporarily extending tax cuts for the rich… it doesn’t make sense.  All that talk about drawing a line in the sand was nothing but BS; if the line your drawing in the sand is coming from a position of giving up ground then why draw the line?  The president gave up ground when HE started talking about temporarily extending tax cuts for the rich.

This whole summer Obama talked about letting the tax cuts for the rich expire and how that will generate $700 billion in revenue that would be used to pay down our $13 trillion-dollar deficit.  Obama even talked about how it would not be fiscally responsible for us to borrow money from China or Saudi Arabia to pay for tax cuts for the rich.  So what happened?

The president says he did it so not to hold the middle class and unemployed “hostage”; I can understand this thought but I thought we don’t give into terrorist??  Obama has to understand that Democrats like me are upset by his lack of fight.  He can talk all he wants about Republicans should not take this compromise as a sign of weakness, but the fact is they are and what’s worse Democrats are starting to think the same thing.  Where is the threat of veto from the president?  Why didn’t Obama challenge Republicans to be the group that voted down Middle Class tax cuts?  Instead after cutting the deal the only tough talk I am seeing/hearing from the president is at Democrats for not supporting him on this.

One congressman said it best, if the president didn’t have the guts to let the tax cuts expire now…  why should we believe he will have the guts to let the tax cuts expire in 2 years during his re-election campaign??

As always….

If there is something to be said, “It’s On Broadway” to step up and say it!!!

Senate Republicans block extension of Middle Class tax cuts

In not so shocking news Senate Republicans successfully blocked the permanent extension of the Middle/Working Class tax cuts.  This will be 1 of 4 test votes Democrats in the Senate will attempt to see what version of the bill will garner the most votes.

The following versions of the legislation will also be tested:

  1. Senator Schumer (D-NY) has proposed a middle/working  class tax cuts where the cap would be raised to $1 million dollars.  Meaning if you make less than or equal to $1 million you will receive a permanent tax cut.
  2. Senator McConnell (R-KY) make tax cuts for upper wealthy and middle/working class permanent
  3. Permanently pass middle/working class tax cuts and temporarily pass tax cuts for upper wealthy fo the next 2-3 years.

Word is the Senate will vote on Senator Schumer’ proposal next and that is als expected to be voted down by Republicans.  The only plan that will more than likely to receive the most support from Republicans will Senator McConnell’s proposal of permanent extension of tax cuts for both Rich and Middle Cass (#2).  That proposal will also fail as it will not have the necessary support from Democrats as they do not support tax cuts for the Uber Rich.

The only proposal that will more than likely have enough support from both sides of the aisle will be the 3rd proposal listed above:

Permanently pass middle/working class tax cuts and temporarily pass tax cuts for upper wealthy for the next 2-3 years. 

This plan will also be reluctantly be supported by President Obama; he campaigned back in 2008 on letting the Bush Era Tax Cuts expire for he Upper 2% wealthy.  Letting those tax cuts expire will bring revenue of $700 billion over the next 10 years.  That money could be used to pay down our spiraling out of control National Debt ($13 trillion dollars)

The next couple of days will be interesting in the senate as there will be heavy negotiations to include an extension of unemployment benefits that will soon expire for 2 million Americans at the end of the year. 

Republicans are hell-bent on doing whatever it takes to stop President Obama even if that means hurting the nation.  tax cuts fo the Middle/Working class would have more of a positive impact on our economy than any tax cut for the Upper 2%  wealthy.  Extending the tax cut for the rich will set this country back as we will have to borrow $700 Billion dollars from the Chinese so tat the RICH CAN GET RICHER!!

So while Republicans campaigned on lowering the National Debt, in this case lowering the debt is not important when it comes to making sure the Uber Rich can make more money while the rest of the nation suffers.

Republicans will hold unemployment benefits and tax cuts for the Middle Class hostage so the rich can save more money t put into their savings.  It’s very simple folks the Middle Class (you and me) drives this economy…

NOT DIDDY!!!  

Update:  According to White House correspondent Mark Knoller The Senate has also voted against the Senator Schumer’s proposal:

  • Senator Schumer (D-NY) has proposed a middle/working  class tax cuts where the cap would be raised to $1 million dollars.  Meaning if you make less than or equal to $1 million you will receive a permanent tax cut.
  • As always….

    If there is something to be said, “It’s On Broadway” to step up and say it!!!

    Senator Bernie Sanders calls out GOP on tax cuts

    Bravo Senator Sanders (Independent from Vermont) for having the balls to stand up and say what many Democrats are too scared say.

    “We’re very concerned about the deficit, we’re very concerned about the national debt.  But you know what we’re more concerned about?  Giving HUGE tax cuts to the wealthiest people in this country”

    “We just don’t have enough money for working families and their needs; we’re gonna cut back on food stamps… We’re surely not gonna expand unemployment compensation; we got a higher priority Mr. President! 

    We have got to, got to, got to… give tax break to billionaires.  I mean that’s what this whole place (Congress) is about, isn’t it?  They fund the campaigns they get what’s due them…”      – Bernie Sanders on Republicans supporting tax cuts for the rich 

    We need more people like Bernie Sanders (and Anthony Weiner) in politics who tell it like it is!

    As always….

    If there is something to be said, “It’s On Broadway” to step up and say it!!!

    Talking Points Tuesdays – Once again, Unemployment Benefits…

    Today Republican leadership (Sen. Mitch McConnell, Rep. John Boehner, Rep. Eric Cantor) met with President Obama to begin discussions on an agreement/compromise concerning the extension of Bush Era Tax Cuts.  More specifically extending tax cuts for the upper wealthy 2%

    I’m not writing this to once again exhaust the tax discussion; I want to shed light on the disdain Republicans seems to have for the working class.

    While wealthy Republican congressmen fight to protect their fortunes as well as the fortunes of their millionaire/billionaire buddies; 2 Million Americans will potentially lose their unemployment benefits at the end of the year as congress was unable to workout an extension.  Those Americans struggling to find work will once again be slapped in the face by the government they voted.  At the same time they will be labeled as lazy folks looking for a hand out.

    REALLY??

    I don’t understand how anyone could call the majority of Americans on unemployment lazy.  If you ever been on unemployment you would know going from a $60K (annually) job to receiving $405 (before taxes) a week is NO lap of luxury. 

    Weekly unemployment benefits by state (2/2009)
    State  Maximum State  Maximum
    Alabama $255 Montana $407
    Alaska $370 Nebraska $308
    Arizona $240 Nevada $362
    Arkansas $409 New Hampshire $427
    California $450 New Jersey $584
    Colorado $475 New Mexico $455
    Connecticut $519 New York $405
    Delaware $330 North Carolina $494
    District of Columbia $359 North Dakota $385
    Florida $275 Ohio $372
    Georgia $330 Oklahoma $392
    Hawaii $545 Oregon $482
    Idaho $362 Pennsylvania $539
    Illinois $385 Rhode Island $528
    Indiana $390 South Carolina $326
    Iowa $443 South Dakota $285
    Kansas $423 Tennessee $275
    Kentucky $415 Texas $378
    Louisiana $284 Utah $444
    Maine $496 Vermont $409
    Maryland $380 Virginia $378
    Massachusetts $628 Washington $541*
    Michigan $365 West Virginia $424
    Minnesota $566 Wisconsin $363
    Mississippi $230 Wyoming $387
    Missouri $320    

    Who can feed a family and pay bills on $628??

    The economy is SLOWLY recovering but there is not enough job creation to support the amount of unemployed Americans on the market. 

    It is time for us to do the right thing and help those who NEED the help and not worry about tax cuts for RICH MOFOS!!

    As always….

    If there is something to be said, “It’s On Broadway” to step up and say it!!!

    Talking Points Tuesdays – If it’s good enough for Warren Buffett…

    Warren Buffett

    If you know me you know where I stand with ending Bush Era Tax Cuts for the upper 2% wealthy and extending the tax cuts for the Middle/Working Class.  It’s very simple, our economy is driven by the middle/working class.  Yes the rich spend a lot of money, but when you compare to the amount of money and the number of people considered to be in the middle/working class…  There is no comparison!!!

    People need to realize 95% Americans (that’s you) were given a tax cut by President Obama!!

    President Obama campaigned on letting the Bush Era Tax Cuts for the upper 2% wealthy; so there is nothing new.  WE all knew that this was coming and it was heavily supported, no surprises or flip-flopping going on here.  In fact letting the tax cuts expire for the wealthy is still widely supported by the American people.

    So what’s the problem?

    The problem is so-called fiscal Conservatives in Congress are now crying that letting the tax cuts expire for the rich will stifle economic growth and kill jobs.  Meanwhile they (Conservatives) also scream about being fiscally responsible; the problem with all of this is that extending the tax cuts for the rich will cost the United States $700 Billion over the next ten years.  That’s $700 Billion that will be added to our already enormous National Debt.

    The Congressional Budget Office aka CBO (neutral entity) has stated that giving the rich a tax cut is the LEAST effective way to create jobs or stimulate the economy.  Ronald Reagan’s budget officer has gone on the record that extending the tax cuts would cause my harm than good (for the record he suggest letting tax cuts expire for Rich and Middle/Working classes).

    Let’s see that’s a neutral entity in the CBO against tax cuts for rich and we also have a Conservative who worked for the Grand Daddy (Ronald Reagan) of Trickle Down economics against tax cuts for the rich (and Middle/Working class).  Still we have the GOP trying to push the agenda of tax cuts rich and that Liberals are trying to start a class war.

    Maybe the American people will ignore the GOP and listen to some one who will be directly affected by increased taxes; Warren Buffet.  If you don’t know Buffett; he is rich beyond rich.

    How do you think he feels about letting the Bush Era Tax Cuts for the upper 2% (which he is) expire?

    “I think that people at the high-end, people like myself, should be paying a lot more in taxes. We have it better than we’ve ever had it,” he told ABC’s Christiane Amanpour

    Wait, WHAT?

    On increasing taxes for the rich…

    “The rich are always going to say that, you know, ‘Just give us more money, and we’ll go out and spend more, and then it will all trickle down to the rest of you.’ But that has not worked the last 10 years, and I hope the American public is catching on.”

    As I stated in the title of this posting, “If it’s good enough for Warren Buffett…” then it is good enough for the rest of the upper 2% rich!!

    Buffett

    As always….

    If there is something to be said, “It’s On Broadway” to step up and say it!!!

    Talking Points Tuesdays – Bush Era Tax Cuts

    Punks!!!

     

    The big talk these days in Washington is Bush Era Tax Cuts; some of you might be saying what exactly are the Bush Era Tax Cuts?  It’s very simple, the Bush Tax Cuts are tax cuts that are geared towards the rich (2% of Americans).  These cuts were implemented in 2 phases back in 2001 and 2003; since 2003 the extremely rich (2% Americans) benefited while America paid for 2 wars and had an economy that nearly collapsed into a Great Depression.  Also during this time the working/middle class suffered and carried the weight of this nations fragile economy on its back; for those of you that don’t know that means 95% of Americans carried that load.   

    We the working/middle class are the key to a successful economy; when we are doing well this country is doing well.  A perfect of example of this was during President Clinton presidency; EVERYBODY made money during that time!!  This is something that President Obama understood when he campaigned for the presidency; this is what “THE PEOPLE” wanted and cheered for during his campaign rallies.  So far the president has put in place tax cuts for the middle class; 95% of Americans are now receiving a tax cut.  For the people who are slow, THIS IS A GOOD THING!!!!  The next step in President Obama’s plan is to let the Bush Era Tax cuts for the wealthy (2% of Americans) expire at the end of the year and permanently extend the tax cuts for the middle.  Now before the rich get all upset and start yelling about being unfairly treated, when the Bush Era Tax cuts expire the tax rate for the rich will go back to what it was during the Clinton years.  As I stated earlier, it was during the Clinton years when EVERYBODY got paid!!   

    So how is it that Republicans have distorted this message?   

    Republicans believe that raising taxes on the rich will stifle job creation; this is simply not true.  If this was true where are all the jobs that should have been created as a result of the Bush Era Tax Cuts?  Timothy Homan wrote in an article for Bloomberg.com (Rich Americans Save Tax Cuts Instead of Spending)   

    The Moody’s economists examined saving rates by income groups back to 1989. Their study uses statistics from the Federal Reserve’s quarterly Flow of Funds report, which gauges the net worth of households, and the Fed’s triennial Survey of Consumer Finances, a measure of balance sheets, pensions and incomes of U.S. families.   

    When tax legislation was signed by Clinton in 1993 — raising the top tax rate to 39.6 percent from 31 percent — the saving rate fell from 12.1 percent in the second quarter to 9.5 percent in the first quarter of 1994. The Standard & Poor’s 500 Index rose 1.9 percent from July through September, after little change the previous three months.   

    When the first Bush tax cuts were signed into law in June 2001, pushing the top rate down to 35 percent, the wealthy boosted savings. The saving rate climbed to 2.8 percent in the first quarter of 2002 from minus 2 percent in the second quarter of 2001. The increased savings coincided with a 1.1 percent decline in the S&P 500 index.   

    After the second round of Bush tax cuts in May 2003, the rich also increased their saving, with the rate climbing to 7.6 percent in the first quarter of 2004 from 2.2 percent in the second quarter of 2003, the Moody’s data show.   

    On top of all that information the best thing about letting the Bush Era Tax Cuts expire for the wealthy 2% would save us $700 Billion that can be used to pay down the National Deficit.  So with all that said you would figure it would be pretty easy for Democrats to debate this.  Except for one thing, Democrats are proving to be PUNK ASS BITCHES!!!     

    Instead of using this as an opportunity to show fiscal responsibility Democrats are running scared and are delaying the vote on allowing the Bush Tax cuts to expire.  They are terrified of being accused of raising taxes during an election year; as I stated earlier this is not an increase that has not been seen before.  The rich will simply go back to paying a percentage of taxes they used to pay during one of the most successful economies.  The President and the WHite House are fighting to have this vote now, unfortunately spineless punks like Harry Reid is more concerned about his political future instead of fighting for the working/middle class he claims to care about.  Where is the fight in Democrats?  I see the likes of the President and Nancy Pelosi standing up, when will the rest of the party follow??   

    I’ll probably never be a big fan of Bush 43 but at least you can say he stood for what he believed in (good or bad); he didn’t pay attention to poll numbers.    

    There is a difference between campaign and governing; some times you have to make difficult decision when you govern.  So Dems get off your asses and stop campaigning when the American people need you to govern!!   

    As always….
    If there is something to be said, “It’s On Broadway” to step up and say it!!!