Republicans Want to Raise Taxes on the Middle Class

Republicans, led by Eric Cantor, want to let the temporary 2% payroll tax reduction implemented by congress last year expire at the end of this year.  

The 2% payroll tax cut is a reduction of the amount employees pay into Social Security from 6.2% to 4.2%.  I can’t say I fully support this tax cut in the first place, but it was sold as an economic stimulus measure designed to put more money in the pockets of wage earners who would spend it and boost the economy.  The tax is imposed on incomes up to $106,800, so this tax cut has very little affect on the super rich, but can put a $1,000 extra dollars a year into an average workers pocket and up to $2,136 into the pocket of an upper-middle-class worker.  Republicans are not fighting to extend this tax cut.  

Republicans are fighting to extend the Bush tax cuts that have also reduced income taxes for the middle class, but not nearly to the extent that they cut taxes for the extremely wealthy. Last year they fought against letting any of the Bush tax cuts expire and this year they fought against the closing of any tax loopholes saying that any action or inaction by congress that ends up increasing federal revenue is a tax increase. 

Obama has argued for extending the Bush tax cuts for people earning under $250,000, but Republicans say letting taxes expire for the wealthy is a tax increase and they will not stand for it.  But by their own definition of what constitutes a tax increase, they will stand for increasing taxes on middle-class wage earners.

Republicans have turned their argument for tax cuts on its head by contending that increasing the federal deficit, which the payroll tax cut does by about $120 billion per year, does not create jobs in the long run – it kills jobs.  Hmmm… I seem to recall that the Bush tax cuts, which added a trillion dollars to the deficit over ten years, were sold as a job-creating measure because more money would go into the hands of the wealthy who would use their extra trillion dollars over the ten-year term of the tax cuts to create jobs. So how did that turn out?  The decade of Bush tax cuts was the worst decade in terms of job growth since The Great Depression. (See four posts down.)

Oh well… It wasn’t bad decade for the super rich “job creators,” because as their incomes more than doubled over that time period, their taxes were cut substantially.  With Republicans on their side, they come out winners every time.

Does anyone out there have any doubts that the Republican Party is of the Rich by the Rich, for the Rich?

Cantor’s Budget Proposal will Result in a Plutocracy and Great Social Tension

“The more likely effect, it seems to me, of cutting taxes for the rich and social programs for the poor is to rekindle social tensions.” – Arthur M. Schlesinger, Jr.

That is the crux of the current debate about how to solve our long-term debt problem. Republicans think taxes are too high and that social programs are too generous, so they pledge on the Grover Norquist Bible to do everything they can to cut taxes and end social programs.  Their patron saint Ronald Reagan pushed through huge tax cuts, but when the deficit grew sharply, at least he had enough sense to correct the problem with tax increases. Today’s Republicans think that any change to the tax code that results in increased federal revenue is wrong.  This they think when federal revenue as a percentage of GDP is the lowest it has been in over fifty years.

On one side of today’s budget debate we have Paul Ryan and Eric Cantor demanding a 6.2 trillion dollar cut in government spending over ten years that will cripple social safety net programs that provide unemployment income, retirement income, health care, housing, and education for our citizens. Most of the cuts they are proposing will primarily affect those of little means.  But if they succeed in repealing healthcare reform, all but the very richest among us will be affected.

Eric Cantor is against fixing the tax code to make billionaire hedge-fund managers pay the top-tier tax rate.  At the same time, he also wants to change the timing of when student-loan interest kicks in from graduation date to immediately.  This is just one example of how he wants to shift the tax burden from those who can most afford it (the obscenely rich people who have seen their income skyrocket in the past 20 years) to those just coming out of college trying to find jobs in a depressed economy.   Republicans also believe that taxes on profitable corporations and the super richest Americans should not be increased.  They would actually like to lower the corporate tax rate and the top-tier personal income tax rate.

On the other side we have President Obama and sensible Democrats who are willing to cut some federal spending, including our bloated military budget, and raise tax revenues – not by raising tax rates – but by closing loopholes that would result in getting more revenue from profitable corporations and hedge-fund managers.  It’s a balanced approach that makes much more sense.  Polls show that the public has a far more favorable view of this plan.  Yet the Republicans in the House are stubbornly going against what the majority of people prefer to see happen.

And then there’s John Boehner.  I heard him on NPR last Friday morning reading from his Norquist script saying: “Our stand on the debt limit has been clear. There can be no tax hikes because tax hikes destroy jobs.”   What struck me about the broadcast was, and this is purely subjective based on my internal vocal-pattern-assessment meter, Boehner did not sound at all like he believed what he was saying (listen for yourself).  I think he knows increased tax revenue is essential to solving our long-term debt problem, but he won’t say it now (he was willing to do it the week before) because he is being pushed into a corner by radical extremists in his party.

Come on people.  We get the politicians we deserve.  In 2010 there were enough government hating, tax hating, greedy, stupid (maybe someday I’ll be a billionaire too!) Grover Norquist led Tea Party voters to elect these guys.  Now they are doing their damndest to cut taxes and shrink government down to a size “they can flush down the toilet.”  Is this really what we want?  Like I said earlier, polls consistently say the answer is no.

President Obama, the Democrats, and any sensible Republicans left in congress had better not cave into the demands of this extreme radical faction of the Republican party, because the future of our nation is at stake.  If the Norquist faction funded by the super rich prevails, we will become a second-rate banana republic led by a plutocratic government bought by billionaires, and social tension will rise to a level way beyond what Schlesinger foresaw.

US Soccer Women Show Us at Our Best

It seemed hopeless. With just seconds to go before the end of the thirty minute overtime period, Brazil had a 2-1 lead. The US World Cup women’s soccer team had battled valiantly for almost an hour a player short since defender, Rachel Buehler, had been red carded and sent off twenty minutes into the second half.

With tired legs but their indomitable spirit intact, the Americans mounted a final attack when Carli Lloyd pushed the ball aggressively forward in the middle and, with three Brazilians moving to challenge her, made a soft pass to Megan Rapinoe on the left wing. Rapinoe advanced the ball a few yards and then lofted a beautiful floating cross to the far side of the opposing goal where it made contact, not with the desperately diving Brazilian goalkeeper’s hands, but with the head of the leaping American striker, Abby Wambach, who redirected its trajectory like a rocket into the back of Brazil’s net. It was a glorious equalizer that provided the opportunity to win the game in a penalty shoot-out – which the Americans did.

In a memorable World Cup final today, that same indomitable spirit was on display by both teams as the Americans, alas, came up short in a penalty-kick shoot-out against a fine Japanese team.

Yet at a time when we seem to be diminishing as a country on a daily basis, when the worst of what we are is on display every time we switch on the TV or read a newspaper, watching these American women was, for me, a welcome reminder that the best of us are still bloody wonderful.

We now have one of our two major national political parties for whom devastating cuts to government programs that preserve some semblance of a social safety net for our most vulnerable citizens, not all of whom are poor but many of whom are seniors and children, are not only preferable but essential in order to maintain low tax rates for America’s most affluent class. The GOP  are willing to drastically slash everything from health programs for seniors and the poor, to research and development funding for our universities and other institutions of science and technology, to training programs for displaced workers and money for helping poor women and infants with nutritional assistance, all in the cause of our under-taxed wealthy.

Every time I listen to the Fox News pundocracy (which I confess I avoid most of the time for the sake of my mental health) or hear the likes of GOP Congressman Eric Cantor, our shrinking stature as a nation is driven home all too painfully.

There was a time we dreamt Big Dreams of manned space exploration. Now NASA’s Shuttle program is ended and there’s no chance we can find funding for the next step because, well, we need to keep those taxes low.

Every major industrialized country in the world has managed to create a system of universal health care coverage – except the United States. And if we listen to the Republicans, we never will because it’s simply beyond our capability. If they have their way Medicare will be privatized, Medicaid eligibility will shrink and the Affordable Care Act, which for the first time tries to tie our patchwork healthcare system into a cohesive whole, will be repealed. In short, the GOP seeks to preserve the right of Americans to go bankrupt paying off their health care bills (and will introduce seniors to the privilege) – something that is alien to the average German, or Brit or Canadian, or anybody else who lives in an advanced nation.  All this so millionaire hedge fund managers can continue to pay taxes at a lower rate than their clerical staff.

Yes we can cut the cost of government. The Pentagon budget is bloated, we pay subsidies to rich agro-businesses and there are plenty of efficiencies to be wrung from Medicare and Medicaid if we work together on it and stop branding any attempts to do so as “rationing”.

But there is a wing of the GOP that is incapable of compromise or of stepping back and looking at the Big Picture of what is or is not good for our country. To the Eric Cantors and Michele Bachmanns and their cheering base of loonies, you may have to destroy the country to save it – and they certainly seem willing to do the destroying part.

It’s all very depressing.

Yet we mustn’t forget the best of us either. Our servicemen and women in Iraq and Afghanistan have performed magnificently for a decade now, showing both the advantage of a volunteer force (training, skill, dedication and utter professionalism) and the pitfall (if our own sons and daughters were at risk through a draft, would we have allowed the likes of George W Bush to slide us so easily into war?).

And then there are those incredible women of the US national soccer team who refused to admit that they were beaten.

So next time I happen to be watching Fox News and my blood pressure’s rising, I’m going to my new Happy Place where I’m a spectator at that World Cup quarterfinal game, and the ball is soaring from Megan Rapinoe’s boot as if on invisible wings, born of hope and determination and a never-say-die American spirit that shouts to the world that we will never give up and we will never surrender, for its momentous collision with Abby Wambach’s head.

And instead of another futile rant at the TV, I’ll just smile.

Eric Cantor is a Punk-Ass Teapot

Lat week House Republicans abruptly walked away from a bipartisan committee that was set up to address our nation’s long-term deficit problems.  

House Majority Leader Eric Cantor has aligned himself with the Tea Party faction that has a simplistic view about how to solve the problem:  Cut social safety-net programs, and do not allow any tax increases whatsoever.  And when they say “tax increases,” they are including the closure of tax loopholes and the cessation of tax subsidies to highly profitable corporations.  

So Eric Cantor walked out of negotiations last week saying that it’s the Democrats fault because they want to raise taxes, and any tax increase of any kind is totally unacceptable.  He knows increased revenues have to play a part in fixing the long-term deficit problem, but he struck a pose and then handed the ball over to John Boehner.  The Speaker of the House will end up compromising with President Obama to address the long-term budget plan by cutting a deal that will end up including some measures to increase revenue by closing loopholes and elimnating some outdated subsidies.  The deal must be made to guarantee the passage of a bill to raise the debt ceiling before the August deadline. 

Cantor will say he stood up to liberal tax-and-spend Democrats, and his Tea Party base will call him a hero, but this is what he really is:

Teapot-Converted