The extension of the tax rates issue before Congress is heading toward critical mass because Democrats failed to address the issue prior to the election. Now it is up to the Lame Duck Congress to right the ship before tax increases take place next year. The problem is that the Democrats want to extend the rates only to the middle class while raising the tax rates for the wealthy (defined as those making more than $250,000 a year).
This is nothing more than classical class warfare. The Democrats will be the first to tell us that things were rosy when Bill Clinton was in office. Well, when he was in office the tax rates for everyone was higher. If they truly want to get back to what they perceived as a wonderful time then they should let the tax rates expire and raise taxes on everyone. Then the rates that supposedly brought us prosperity will once again be in place and we will have a wonderful life and Democrats can sing Happy Days Are Here Again.
Tax cuts increase revenue to the Treasury because people are able to keep more of what they earned with their blood, sweat and tears. They can keep the fruits of their labor and then spend the money and produce a vibrant economy. No nation has ever taxed itself to prosperity.
The issue here is nothing more than class warfare where Democrats pit the so called wealthy against the middle and lower classes. This is right out of the Democrat playbook and it is how they keep some members of society on their plantation. Stick with us folks and we will give you other people’s stuff. The unfortunate thing is that we have allowed people to grow up with an entitlement mentality. They feel they are entitled to the money of others. They even call the stuff they get entitlements even though they are forced redistribution of wealth.
The plan put forth is bad. It extends the tax rates (no cuts are made) for two years at which time this fight will reemerge. This is a short term and short sighted solution to the problem which will still leave doubt and uncertainty in the minds of the people who drive our economic machine.
To top it off, the deal comes with increased spending which will add to the deficit. Billions of dollars in spending is included in this plan and that is not good.
To further add insult to injury, the estate tax rate will increase by 35%. Currently, the rate is 0% so people who died (or will) this year were able to pass their wealth, wealth they have paid taxes on while it was being accumulated, without their heirs being socked with a huge tax bill. The deal will allow the government to take 35% of any estate over $5 million. This is a crime and should not be tolerated. What right does the government have to the money that a person accumulates for his heirs? NONE!
Smart planners do things before they die to keep this from happening but they should not have to do so. The government should not be taking this money. It was taxed at least once (and more likely several times) as it was accumulated. The government thinks it has the right to rape people after they are dead.
This deal is a bad deal and Republicans should not even be negotiating. They should tell Obama and the Democrats that the tax rates are to be extended permanently and that is the end of the story. Nothing added to the bill, no spending allowed, no add ons, no estate tax increases, no nothing.
If Obama does not like that then he should remember the words he used when he failed to negotiate with or include Republicans in his prior agenda, we won. It was Obama who made it clear that he was doing things the way he wanted because; “I won.” Well now we won and he will just have to deal with it.
Tax rates permanent or not at all. Let him and his Democrats face the public for allowing the rates to increase. They failed to do anything before the election and now they have to face the consequences of the last election and those consequences are, we won.
Remember, it was the Democrats who kept reminding us that elections have consequences so they would do well to remember that now.
As for the tax rates, they all get extended or none of them do.
If they all end up increasing then Democrats can look forward to the happy days they experienced under Bill Clinton. The old rates are his and Democrats think we did great under them so let’s raise them all.
Let us also keep in mind that Democrats always called the Bush tax cuts tax cuts for the rich. They have never acknowledged that the middle class got a tax cut. When they were running for office none of them ever said anything about the middle class. No, these were all tax cuts for the rich.
So let them expire because it will only affect the rich.
Funny though, the Democrats have always harped on how terrible the Bush tax cuts were but now Obama and Clinton (the co-presidents) are saying that this plan is what we need to stimulate the economy.
So once again, all or nothing. Let the rates go up. Obama will be a one term wonder and the country will be in the dumper and America will finally see what a failure Democrat economic policies really are.
Related:
The Hill
Cave Canem!
Never surrender, never submit.
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