President Obama isn't just destroying the Democratic Party and the country,

[ProSense]

87. Well,

So they fill out your tax returns, they don’t say that they’re earning income. They report capital gains, taxed at a much lower rate. So what Obama is doing is flimflam. The Congressional Budget Office has shown that the wealthy people get most of their rise in net worth by capital gains, not income. He’s not making a peep about that.

http://www.counterpunch.org/2013/04/12/obamas-cat-food-social-security-reform/

Michael Hudson puts the entire chained CPI and Social Security issue in the context of our whole economy.

I would like to know what you think about what he has to say. Thanks.

...ot appears the piece is cherry picking to focus on diminishing the impact of the income increases, and the point about capital gains if flat out false. President Obama not only returned the capital gains rate to pre-Bush levels, he also increased it even more with the health care tax.

Simple arithmetic shows the reality of the income tax changes in terms of addressing inequality.

Pre Bush tax cuts: lowest tax bracket 15 percent and top tax bracket 39.6 percent.
Bush tax cuts: lowest tax bracket 10 percent and top tax bracket 35 percent.
President Obama's tax deal, lowest rate 10 percent, top rate 39.6 percent.

Do the math and it will show that the gap between someone earning $50,000 and someone earning $500,000 closed to more than what it was in the 1990s. Add the health care law tax and the gap closes even more.

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Perhaps the best prism through which to see the Democrats’ gains is inequality. In the 2008 campaign, Mr. Obama said that his top priority as president would be to “create bottom-up economic growth” and reduce inequality...In the 2009 stimulus, he insisted on making tax credits “fully refundable,” so that even people who did not make enough to pay much federal tax would benefit. The 2010 health care law overhaul was probably the biggest attack on inequality since it began rising in the 1970s, increasing taxes on businesses and the rich to pay for health insurance largely for the middle class.

http://www.nytimes.com/2013/01/03/us/politics/for-obama-fiscal-deal-is-a-victory-that-also-holds-risks.html

Obama and Redistribution

Some notes for myself: how much impact have Obama’s policies actually had on current and prospective inequality?

The main policies to consider are PPACA (the health reform) and ATRA (the fiscal cliff deal with its associated tax rise).

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Putting this together, we have a roughly 6 percent hit to the 1 percent, around 9 to the superelite. That’s only a partial rollback of these groups’ huge gains since 1980, but it’s not trivial.

http://krugman.blogs.nytimes.com/2013/01/20/obama-and-redistribution/

Do the math.

Also, in the current budget

There are even more increases that target the rich in the proposed budget.

See the chart here: http://www.democraticunderground.com/10022670043