Tax Cuts

Middle Class Tax Cuts Pass in the House, but…

Posted on by Bobby Broadway

During the Lame Duck session of Congress Nancy Pelosi was able to pass Middle/Working Class tax cuts through the House of Representatives.  Officially 168 Republicans voted against permanently extending the tax cuts for the middle/working class; basically voting for a tax increase for the middle class!

This permanent Middle/Working class tax cut will be voted down in the Senate; the problem is that Democrats do not have the 60 votes necessary to protect this tax cut from a filibuster.  Harry Reid will bring this version of the tax cut and other versions up for tests votes to se which version of the legislation will garner the most votes. 

Here are some versions that will be brought up for test votes

  1. The House passed permanent middle/working class tax cuts for those who make less than or equal to $250,000
  2. 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.
  3. Senator McConnell (R-KY) make tax cuts for upper wealthy and middle/working class permanent
  4. Permanently pass middle/working class tax cuts and temporarily pass tax cuts for upper wealthy fo the next 2-3 years.

Senator Reid could bring this up for vote starting Friday; more than likely #4 will be the version that will receive the most votes.  In my opinion Sen. Schumer’s proposal is the most fair offer as it will not only give th middle/working class the tax cuts they so desperately need but it will also cover more people making up to $1 million dollars.  While at the same time still being fiscally responsible.

Unfortunately, Republicans will continue their obstruction ways… and they will continue this until they have enough votes to pass what they want.  Republicans will support permanently pass middle/working class tax cuts and temporarily pass tax cuts for upper wealthy fo the next 2-3 years.  In 2 years Republicans will then have another election to gain the necessary votes to permanently extend those temporary tax cuts.

With out of control debt there is only 1 solution to ensure another $700 Billion is not added to our already $13 trillion-dollar debt.  I think the president should take a stand and show everyone who’s the boss; let all the tax cuts expire, it would be a risky move on his part but it would be a position where he could stand and show he has the proverbial balls to make tough decisions that would start bringing down our debt.

I highly doubt he will do that…

Meanwhile here is video of Nancy Pelosi on the floor of the House talking about Middle Class Tax cuts:

 As always….

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

Talking Points Tuesdays – 2.5 Million without Unemployment Benefits

Posted on by Bobby Broadway

On June 21st I wrote about the stalemate between the Republican and Democrats concerning the extension of Unemployment Benefits and adding potentially $33 billion to the National Debt; Militant Mondays – What Happened to PAYGO. My concerned back then was the spending ways of this government; and that eventually we as a nation have to pay attention to how we spend money. Even though adding $33 Billion is relatively a small amount compared to other government spending, I felt that Congress had to make sure they exhausted all viable possibilities in paying for this extension. I felt that the gov’t should follow the PAYGO rules that the Democrats championed.

Since then my stance has slightly changed as more information concerning how PAYGO works, past history and the alternatives being offered by Republicans.

  1. PAYGO – Is the practice of financing expenditures with funds that are currently available rather than borrowed.  In the case of paying for the extension of Unemployment Benefits this is considered “Emergency Spending” and PAYGO rules do not apply.
  2. Past History – Since 1950 we have extended Unemployment Benefits in every Recession except one.
  3. Republican Alternatives – Use TARP (Troubled Asset Relief Program) money to help fund the $33 Billion needed for Unemployment Benefits.  Under current law TARP funds can only be used to pay against the National Debt; there would have to be a change in the law.  Also keep in mind when it was suggested earlier this year to use TARP money to fund a jobs bill; Republicans immediately shot that idea down without hesitation noting that TARP money should only be used to pay down the debt.  http://www.politico.com/news/stories/1209/30216.html

Deficit hawks have also stated that not extending Unemployment Benefits could cause more harm to the economy as the money spent on Unemployment Benefits as that money would be used by the unemployed and put back into the economy immediately.

All of the above factors helped change my mind; initially I felt that sooner or later we will have to make tough decisions in order to put this country in the right direction.  I don’t care if good ideas are from Republicans or Democrats; I just care about GOOD IDEAS! With that said I can tell you without a doubt that Representative Mike Pence (R-Ind) thoughts on how we should treat Unemployment Benefits is NOT a good idea. Recently Mike Pence was asked by Fox’s Wallace about the Republicans’ argument that the unemployment benefits be “paid for” — but why not also “pay for” a reauthorization of the tax cuts, which will cost $678 billion?

Pence responded:

“The point is we’ve got to get this economy moving again and we can’t go back to the tax-and-spend policies of the Democrats or the tax-cut-and-spend policies of the prior administration.”

Many economist agree that Bush’s tax cut during his administration did not generate the economic growth they expected; so when you look at which could possibly have a worse impact on our National Debt.  I’m pretty sure helping the rich and adding $678 Billion to the debt can cause a tad more harm than adding $33 Billion to the debt and helping relieve the struggles of 2.5 Million people without unemployment.

It boggles the mind how Republicans can say with a straight face that we should “pay for” extending unemployment benefits but hey it’s cool that wealthy Americans should get a tax break that doesn’t have to be paid.

Maybe it’s me, Michelle Bachmann can you help me to better understand this concept?

See video:
http://landing.newsinc.com/shared/video.html?freewheel=69016&sitesection=ndnsubss&VID=88967

Correction Michelle Bachmann, Congress did cut budgets so that the majority of the extension of unemployment benefits will be paid for.  Also as I stated earlier the exception to PAYGO is emergency spending.  Extending unemployment benefits has always been considered emergency spending.

Bachmann stated she wanted President Obama to “Cut the dramatic government spending…”; Which seems to be more dramatic $33 Billion or $678 Billion?

Update 7/20/2010:
With a 60-40 vote, the Republican filibuster was ended; setting up a potential final vote on the measure later Tuesday. The legislation would then have to return to the House for approval.

The roughly $33 billion cost of the plan will be paid for by new borrowing.

Democrats were able to reach the crucial 60-vote supermajority to overcome Republican filibuster only after Sen. Carte Goodwin (D., W.V.) was sworn in by Vice President Joe Biden a few minutes before the vote. Mr. Goodwin succeeds Sen. Robert Byrd (D., W.V.), who died in June.

Update 7/22/2010:

Mark Knoller reports that House votes final passage to unemployment benefits 272 to 152.  President Obama will sign as soon as bill reaches White House.

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