President Obama is urging Republicans to pass a two-month extension compromise of his payroll tax cut. From the White House:
In the afternoon, the President will continue to urge House Republicans to do what’s right for the American people by allowing a vote on the short term bipartisan compromise passed by almost the entire Senate. If Congress fails to extend the payroll tax cut, the typical family making $50,000 a year will have about $40 less to spend or save with each paycheck.
The President is also pulling at heartstrings:
Obama will point people to a new section of the White House website where they can “share what a $40 paycheck means to them.” In addition, he’ll urge them to make use of a new Twitter hashtag, #40dollars.
The White House has also rounded up a group of citizens “who would see their taxes go up” to appear alongside Obama. Unclear if they’ll recite their assuredly heart-rending tales of prospective woe.
Republicans don't want the two-month extension. They are saying they want the payroll tax extension to last another year, which makes a lot more sense than a two-month extension.
This is all the usual partisan dance, of course, but what I find interesting is when Democrats go on record supporting tax cuts. You see, Democrats are generally the party that increases taxes. Republicans are generally the party that cuts taxes (and Democrats howl every time they do). Obama has turned that reality on it's head, which to me is an acknowledgement by the head Democrat that tax increases DO have a negative effect on people's lives. Obama is in effect advocating a REPUBLICAN position on taxes, thus admitting that the Republicans have been right all along. Obama is admitting that tax cuts stimulate the economy, just as Republicans have said all along. Obama is admitting that tax cuts increase demand, just as Republicans have said all along. Obama is obviously correct about these things. It's basic mathematics. If you have more money in your pocket (via less taxes), you will spend more. It's that simple, so I wonder why Democrats have devoted so much time and energy to denying it ??? Obama has ripped away the ongoing Democrat lie about tax cuts. I only wonder if he realizes he's done it, and how is he going to switch gears and start defending the huge tax increases he proposes starting in 2013 ??? That should be some magic trick. Only the Great Prevaricator has a snowball's chance of pulling it off (with the reality-blurring help of his fawning, Democrat-dominated mainstream media). Should be interesting.
Under the Democratic vision for this country, the only way out of our economic mess is enormous tax increases, precisely the opposite of what Obama is trying to feed us with his payroll tax cut. Let's start with Obama's own ten-year budget proposal, which assumed all the Bush tax cuts would expire. That would be a $3.8 trillion tax increase right there (and Obama's ten-year plan STILL added $8-9 trillion to the debt over a decade). Nothing like having huge tax increases AND a $20 trillion debt, eh ? But maybe the Democrats will abandon that plan, and only promote repealing the Bush tax cuts for the rich, thereby bringing in a whopping $75 billion per year to address our trillion dollar deficits. My calculator says that math doesn't add up at all, but Democrats keep pretending it does. It seems to be their main (phony) talking point, so it must be fooling somebody. "Fair shares" and all that rot.
The Democrats have all kinds of tax increases up their sleeve. Senate Majority Leader Harry Reid (D-NV) has even proposed paying for Obama's payroll tax cut with a, drumroll please,...TAX INCREASE. Weird:
...Harry Reid's plan to finance a one-year payroll tax cut with a 3.25% income tax surcharge on upper-income Americans that would last for at least 10 years. Mr. Reid knows it can't pass the House, and as we went to press it looked likely to fail even in the Senate.
Reid's plan won't pass the House or Senate, but Democrats like it for it's class warfare value. "Fair shares" and all.
Who would Reid's tax increase affect ??? Here's who:
Mr. Reid's surcharge—which would hit incomes of $1 million and above—would slam small business job creators. Congress's Joint Committee on Taxation estimates that taxpayers will declare about $1.2 trillion of business income in 2013. Only a fraction of those small business owners and Subchapter S companies will have a net income above $1 million, but Joint Tax finds that 34% of that $1.2 trillion is on tax returns with "modified AGI [adjusted gross income] in excess of $1 million." This means about $400 billion of business income would be subject to Mr. Reid's profits surtax.
Mr. Obama's own Treasury Department examined 2007 IRS data and found 392,000 returns with incomes above $1 million. Some 311,00, or more than three out of four, were classified by Treasury as "business owners." Perhaps Democrats can explain how taking money from employers is going to lead them to hire more workers.
We're back to the old Democrat snake oil, where Dems pretend they can fix the economy and create jobs by increasing taxes on the job creators. Duh. Liberal Democrats are good at class warfare, but not so good at implementing policies that will create jobs, which is what really helps the economy. Tricking Americans into believing Democrats are for the "little guy" seems to be their priority, even if the Dem policies end up hurting the little guy the most by eliminating jobs. If the choice is between handouts from Democrats or a job, this little guy will take the job every day of the week and twice on sunday.
Imagine a little over a year from now. 2013 arrives, unemployment is still over 8%, and the national debt is over $16 trillion. Obama is re-elected (cringe) to a second term. Is he really prepared to increase taxes by trillions of dollars ? Is he then prepared to increase taxes by $1.5 trillion more to implement ObamaCare ? Is he really prepared to nuke the economy all over again as it struggles to regain it's footing ? Everything I hear from the Democratic leadership says "Yes We Can". Every fiber of my being says "You Better Not".
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