Sequestration

Boehner On Bush Tax Cuts

Boehner On Bush Tax Cuts (Photo credit: Talk Radio News Service)

Sequestration
Is the name of the game
And this generation of Republicans
All play the same.
No matter the game
Debt ceiling
Bush tax cuts
Sequester
All are levers
As tools for hostage takers
To terrorize the poor and defenseless.
They represent the 1%
Not the 47% or the 99%
Do Not Apply
Say the signs
If you are not a member
Of the 1% or a corporate CEO
Mitt and Marie Antoinette
Are their ideal leaders.
The GOP will trash our economy
Their economy is safe
Protected by police, military and
Soon domestic drones
From the likes of you and me.

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Guilt

Benefit Security Card .. HALF of the U.S live ...

Benefit Security Card .. HALF of the U.S live in households that receive government benefits (26 May 2012) …item 2.. Brevard man gets 4 years in Social Security fraud case (Jun 1, 2012 ) … (Photo credit: marsmet481)

If the Bush era tax cuts are reversed only for those earning over $400,000 or for those earning more than $1,000,000 at the expense of recipients of Social Security, I hope that at least some of those earning more than $250,000 and less than $400,000 or whatever the final number happens to be, will feel some guilt at retaining their tax breaks. The current way of calculating Social Security’s annual cost of living adjustment is grossly inadequate. To reduce that amount on a technicality by using a chained CPI is an insult and an embarrassment. I have read that President Obama may agree to it as the least bad compromise to be had. If true, I hope that the 2014 election will change Congress enough to allow a more equitable calculation of future Social Security cost of living adjustments.

Please see Up, up and away | Quality

Bee in bonnet

House Speaker John Boehner, R-Ohio

House Speaker John Boehner, R-Ohio (Photo credit: Talk Radio News Service)

John Boehner has a bee in his bonnet about the possible expiration of the Bush tax cuts at the end of the year. I just received an email that claims the uncertainty about whether or not the tax cuts will expire is already causing the US to lose jobs. As if Boehner cares. Boehner and the GOP want to extend the Bush tax cuts for the rich so that large deficits continue to put pressure on the Obama administration to go along with the Ryan budget proposals to gut Medicare. The GOP will agree to extending tax cuts for lower-income Americans only if they pass tax cuts for the wealthy, who don’t need them.

Bush tax cuts

Republican tactics lead to deminished wages fo...

Republican tactics lead to deminished wages for American middle class – American income gap grows (Photo credit: EN2008)

The Bush tax cuts will expire on December 31, 2012 and the event will be described as going off a financial cliff. It won’t be a disaster if financial stimulus like an infrastructure building bill is enacted in their place. Why is the GOP so insistent on retaining the Bush tax cuts, especially for the top income earners, who don’t really need the money? In my opinion the reason is that the Bush tax cuts reduce government revenue so much that they are causing most of the deficit, and allow the GOP to press their agenda for cutting and then eliminating the government safety net.

Mitt Romney said that he wasn’t concerned about the poor, and he meant it. He did say that he would fix holes in the safety net, but he meant that he would fix the holes by eliminating the safety net entirely. The Republicans don’t really care if the wealthy pay a little more in income taxes; they care that reducing the deficit will reduce pressure to cut government spending on programs they oppose as immoral, such as Social Security and Medicare. The GOP have always opposed these programs and they see the current situation as a golden opportunity to eliminate them.

The only legitimate Federal government spending to their minds is on defense and disaster relief, and then disaster relief to wealthy communities like those affected by the Colorado wild fires. If it is the poor affected by a disaster like Katrina in New Orleans, that is another story.

Follow the money part 2

English: South façade of the White House, the ...

English: South façade of the White House, the executive mansion of the President of the United States, located at 1600 Pennsylvania Avenue in Washington, D.C. Español: Fachada sur de la Casa Blanca, la residencia oficial del Presidente de los Estados Unidos, situado en 1600 Avenida Pennsylvania en Washington, D.C. (Photo credit: Wikipedia)

In order to understand the conversation in Washington, DC, it is necessary to follow the money. Taxes, who pays and how much will be the subject of the conversation at least until the election and probably afterward. Unless you understand a few facts, you will not be able to separate fact from fiction, and the GOP will be airing a lot of fiction.

Should we extend the Bush tax cuts? Should we extend the payroll tax cuts? Should we tax the rich more or less? These are all questions that we will face between now and year-end or longer. Every position will be supported by statistics. Beware of partisans bearing statistics to “prove” their position is correct. There are lies, damned lies, and statistics in order of mendacity. Statistics can be and are used to prove anything under the sun or moon.

I too am a partisan, but here are a few facts to keep in mind. Job creators don’t create jobs unless there is a demand for the product or service. Most small business owners earn less than $250,000 annually. Not by percentages, but by dollar amount, most of the Bush tax cuts go to the wealthy or very wealthy. In my opinion, they don’t need the money. Tax cuts for the poor and middle class will be spent creating demand. Tax cuts for the wealthy are saved or spent on luxury goods produced outside the US. The savings of the wealthy may be banked abroad or invested speculatively in derivatives or commodities such as petroleum, driving up prices at the pump.

Returning to the Clinton era tax rates would be a step in the right direction. The Clinton years were prosperous and at the end of Bill Clinton‘s eight years in office, the nation’s debt was paid off. Now the GOP are complaining about a $16 trillion national debt that they blame on President Obama. The truth is that the debt was caused by the Bush tax cuts, the unfunded wars in Iraq and Afghanistan, and the Great Recession. If we eliminate the Bush tax cuts, the national debt will soon be vastly reduced.

Please see Follow the money part 1