I'm Sorry But... (Tax Cut For The Rich)

[WiffenPoof]

I still think that blowing a hole in the deficit with the tax cuts for the rich is something we should have never agreed to. I don't know what the answer is...but, I just can't understand how we could have allowed this. We are taking a huge risk with the economy with regard to devaluating the dollar, which could result in higher inflation. And of course, we are putting the bill on our children and grandchildren.

Once again...I certainly didn't want to see UI stopped or tax cuts for the middle class fail. I don't know the answer....but almost on moral grounds, tax cuts should have never happened for the rich.

-PLA

[quinnox]

1. Agree

The fallout is gonna be harsh when they say they are forced to cut social programs.

[niceypoo]

3. It will all just collapse eventually

We are in too deep, the republicans are hell bent on collapsing the economy and the Democrats dont have the will to stop them.

[Kablooie]

8. Drown it in the bathtub. That's the true agenda.

[Cosmocat]

15. Yep, and stunningly they are progressing VERY well ...

on that agenda with a dem president ...

I like BO plenty on most things, but this tax cut crape is DISASTEROUS policy, next to ZERO positive economic impact and debilitating governmental debt AND the negatives WILL be put on BO - the MSM might be giving him some love in the moment, but they will EVICERATE him on the debt this friggen disaster ensures ...

Also, the clear signals with a willingness to move right on SS - just tragic ...

[Donnachaidh]

2. k&r n/t

[Angry Dragon]

4. k&r

[Denninmi]

5. It's one thing for our side to say it. Just common sense.

What burns me is the utter hypocrisy of the Tea Party types. All I heard for two years was blah, blah, blah ... Deficits! Suddenly, not a peep out of them about deficits, they're all just thrilled to death to rack up another what, half a trillion or a trillion in debt so that the top 1/2 of 1% can keep their lower tax rates, at a time when the patriotic thing to do would be to raise taxes tremendously on the rich, and modestly on the rest of us who could afford to pay it.

[WiffenPoof]

16. Wow...That's an Excellent Point....

regarding the Teabaggers.

-PLA

[Hydra]

19. It's not that hard

Teabaggers = Republicans = Liars and Thieves

Lots of people complain that we don't give Republicans as much crap as we do Dems on this board- there's a simple reason for that. We expect Republicans to act like Republicans. It's why we don't vote for them.

But when Democrats act like Republicans, who do we blame? I blame the money. In doing so, I blame the system. System is broken, top to bottom.

[TheKentuckian]

6. K&R

[BlueJac]

7. Never, Obama could have handled it very differently......

Never have important issues merged together, that was crazy!!

[WiffenPoof]

18. I Completely Agree...

How would it have better been handled? Not being snarky here. I'm really curious how we should have done this.

-PLA

[Hydra]

20. President Obama could have not supported the top tax cuts

He could have brought a bill over a year ago that put in place the tax cuts up to the $250,000 line. He had the votes, and he had the public support.

Instead he needed a way to sneak the cuts for the top through, so he tied it to the unemployment.

This wasn't hindsight either. When one of my relatives was worried about the unemployment not passing, I told them they would tie it to the Bush Tax Cuts extension.

Just like clockwork.

[RegieRocker]

9. K&R

[soryang]

10. It's Chicago school ideological nonsense

The gross imbalances in the tax structure since Reagan are contributing to the collapse of our economy.

[obxhead]

11. I'm starting to think the real fuck up was not just

eliminating taxes completely.

We're borrowing the money from abroad to pay for it. The country will likely never have the ability to pay it back.

Donald Trump taught us an important lesson. It's bad to be a little broke and in debt. They come take everything. If you owe everyone the sun, moon, and the stars they come bail you out and fix it.

Hopefully China can run this show better than we have.

[WiffenPoof]

12. Wow....Your Last Line...

is chilling.

-PLA

[obxhead]

14. It's the direction we are heading.

I see no controls to stop it from happening.

Edit to add:
Welcome to DU. It can be a bumpy ride sometimes.

[WiffenPoof]

17. Thanks for the Welcome....

....appreciate it.

-PLA

[hfojvt]

13. I am less concerned about the deficit/debt

than I am about increasing inequality in our society (see here, for example http://www.koch2congress.com/5.html). The fact is that the "middle class" tax cuts that we were ready to approve would add $3.2 trillion to the debt (over the next ten years) whereas the tax cuts for the rich would only add another $700 billion.

The other fact is, that much of the "middle class tax cut" money was also going to rich people in three ways.

First, because Obama set the threshold too high for political reasons. I would have let the tax cuts expire for incomes over $100,000 if it was up to me. Less than 16% of households make over $100,000 http://en.wikipedia.org/wiki/Household_income_in_the_United_States

Second, since the threshold is so high lots of that tax cut money is going to households with incomes of $100,000 to $250,000, people in the top 20%. My guess is that if you lowered the threshold to $100,000 that the cost would drop to less than $1.5 trillion.

Third, no matter what the threshold is, the rich still gain the most. Under the original Obama plan, tax rates would remain lower for incomes under $250,000 (for couples). Clearly people with incomes ABOVE $250,000 still get the largest tax cut because they get the lower rates for the full $250,000 whereas somebody with "only" $70,000 in household income only gets the lower rates for $50,000 or so after deductions and exemptions. That is also true of the stupid payroll tax cut. One exception to that rule is the Obama tax credit, which was a) equal at $400 per person and b) phased out for incomes over $95,000. However, Obama did not make that part of the terms of his surrender, mostly because Republicans demanded, and got, an unconditional surrender.