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!!!

Sen Repubs block extend tax cuts for those making under $1-million

According to White House correspondent Mark Knoller Senate Republicans have also voted against extending tax cuts for people making under $1 million dollars. So far today Senate Democrats and President Obama are 0 for 2 when it comes to permanent extension of Middle Class tax cuts.

Mark Knoller noted that the president stated it was, “absolutely essential” to middle class families & the economy that their taxes don’t go up on January 1st.

President Obama also said,

“it makes no sense to hold tax cuts for the middle class hostage to permanent tax cuts for the wealthiest 2% of Americans.”

Obama says, “it is simply wrong” to give tax breaks to the wealthy while denying extended unemployment benefits to unemployed millions (via Mark Knoller).

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!!!