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Thursday, October 27, 2016

REMINDER: GOP Is Threatening Disaster Because They Won’t Raise Taxes On The Rich

REMINDER: GOP Is Threatening Disaster Because They Won’t Raise Taxes On The Rich

The roadshow being put on by Senator Ted Cruz (R-TX) and the Heritage Foundation pushing for the defunding of Obamacare is doing a good job of pitting Republican against Republican. But it’s helped distract from the one core value of the Republican Party: Never ever ever ever ever ever ever raise taxes on the rich.

Politico is reporting that deficit talks between the White House and Senate Republicans have broken down over that exact issue.

“While it’s disappointing, it’s very evident that there’s not enough common ground to produce a result,” Sen. Bob Corker (R-TN), said on Thursday.

This is a repeat of the same drama that led to the debt limit crisis, the failure of the “super committee” and could lead to another crisis that slows economic growth at best or a complete financial meltdown at worst, even as the deficit continues to fall — to about half of what President Obama inherited.

Republicans demand cuts to Social Security, Medicare and Medicaid. The White House agrees, as long as Republicans will agree to some tax increases on the rich. Everything falls apart. Lather, rinse, repeat.

Even though taxes went up slightly on income over $400,000 and capital gains at the beginning of the year, tax breaks still cost the government more than Medicare, Social Security or defense. And more than half of all those cuts go to people in the top tax bracket.

Among these tax expenditures are billions in carve-outs for hedge fund managers who pay lower tax rates than nurses, mortgage deductions on second homes, dodges for big oil and private jets, along with a tax break that allows Mitt Romney to end up with $100 million in his IRA.

Republicans aren’t willing to cut any of them. You can blame Grover Norquist and his pledge. Or you can just recognize that low taxes for the rich is the GOP’s one inviolable belief. And notice the key words “for the rich.”

The latest talks reportedly included Republican demands for “Chained CPI” on Social Security, a change to the program that would both slowly decrease benefits and also subtly increase taxes on the middle class. President Obama has stated publicly that he’s willing to accept this reform if the poorest seniors are protected and Republicans agree to tax increases on the rich. Result: Talks collapse.

“On matters related to the budget, the president has always been clear that closing tax loopholes that benefit the wealthy had to be part of any big deal,” a White House official said, in a statement. “That’s been clear for several years.”

What’s been clearer even longer is that the GOP will do anything to keep taxes low on the rich, especially the super rich — even risk economic catastrophe.

Photo: Fibonacci Blue via

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  • idamag

    Who owns your Congressman?

    • disqus_ivSI3ByGmh

      Stanleyworks and United Technologies (UTC).

    • [email protected]

      Unfortunately it applies to virtually every one of them regardless of their party

  • docb

    Do Nothing blackmailing baggers are anti-American and childish tyrannical despots…They can’t their way out of a paperbag unless the KOCKED UP bros are leading them by the nose!

    Disgraceful rubbish.

  • Dominick Vila

    The GOP opposes a lot more than just raising taxes on the rich, they also oppose the discontinuance of loopholes, subsidies, and foreign tax shelters that allow the wealthiest members of our society and corporations to reduce their tax burden or avoid paying taxes. The same goes for the infamous “non-profits” involved in political and religious activities. Their only justification to qualify is that instead of posting a profit they distribute the earnings among themselves in the form of compensation. Political organizations such as the one created by Karl Rove qualify for tax exempt status by paying good ole Karl and his upper echelon outrageous remuneration and a lavish benefit package…while waitresses, nurses, teachers, and fast food workers live paycheck to paycheck.
    The problem with our economic model and political system is not that they are flawed, but that a few have managed to highjack them to benefit themselves at the expense of the majority of Americans.

    • Allan Richardson

      Whenever confronted with the fact that the rich have all these loopholes (and WOULD PAY a much smaller percentage of their income even WITHOUT them), the GOP raises the IRS bogeyman and says they are “opposed to the loopholes that keep some people from paying taxes,” and they cite the few “loopholes” available to working people, such as mortgage interest (they ELIMINATED other interest, such as cars and credit cars, back in 1986 under Raygun), charities (other than Republican super PAC’s disguised as charities, and of course churches), health insurance premiums (whether paid by employers or by employees), etc. But they don’t mention the “carried interest” loophole by which fees to hedge fund managers (which are in reality a form of salary) are taxes as if they were “capital gains” on the managers’ OWN money, when they in fact put only other people’s money at risk. The Obama administration TRIED to get that loophole closed, and the GOP said NO WAY.

      They want to cut government back to the 1890’s (or the 1790’s) and believe only little people should pay taxes, as Leona Helmsley did.

      • Dominick Vila

        Well said. On the issue of the size of government, they also fail to acknowledge that the size our the Federal government, as it relates to the number of civil servants, is at its lowest level in decades. The reason for it is obvious, they must project an illusion of government largesse to blame increases in the national debt on the party that inherited the mess.

  • JDavidS

    These RepubliCONs/Tea Clowns are great adherents of a despicable pseudo-economist by the name of Rand. They would do well to remember one more of her missives…
    “You can avoid reality, but you can’t avoid the consequences of avoiding reality”.
    Hopefully these buffoons learn this sooner rather than later. For all our sake.

    • LeftThePubsDuetaPalin

      They know it now. They just don’t care.

    • seanhunt

      Remember about her books though. There are no children (parasites) and it ends in apocalypse.

  • itsfun

    How many people could we house, feed, give medical insurance to, etc, for the cost of one presidential vacation to South Africa?

    • johninPCFL

      Unless you’re talking about the mis-reported cost of his India trip (cost in rupees reported as dollars), five. Far fewer than the number fed by GWBs trips to Texas.
      How many could be fed, housed, etc. for the $600,000,000 that was Jack Welch’s pay for his final year at GE? How did the good-old-boys that decided what he would be paid arrive at his $1.8million per day compensation? Oh yeah, he was on THEIR compensation committee. Shareholders, on the other hand, have no say at all.

    • Ford Truck

      Better question would be how many could we have fed with the trillion dollars W Bush wasted blowing and destabilizing the middle east?

      • itsfun


    • highpckts

      Seriously? You of small intelligence!

      • itsfun

        yep, even up people of small intelligence want to know.

  • howa4x

    The un holy alliance between so called Christian conservatives and wall st bankers have made these talks surreal. This coalition wants cuts made on the poorest of society while the super rich pay much less. Christians back the makers, and loathe the takers which is the exact opposite of the teachings of Jesus who railed against money in religion. Obama doesn’t have to run for re election and can stand his ground. He can offer a trade off and if the republicans refuse they will have to put up or shut up. They can shut the government down or make a deal. It is great that this fight is coming just prior to the election. If the republicans shut the government in favor of the rich and the middle suffers at all, the republicans will pay at the ballot box. Seniors are already getting upset at the republican lawmakers for singling them out for cuts while leaving benefits for the rich only. Seniors in poll after poll see the tealiban as being too extreme. If the republican middle caves into them then they all will be seen as selfish children who can’t compromise for the good of the country. Hasn’t helped the republicans that with all the wealth of the corporations right now fewer jobs have been created compared to what they have. This drama will be better that anything Hollywood came up with and will play live on every TV. Republicans can’t win using and old fight. Obama care was voted on in the presidential election and Americans want it. This will be very interesting.

  • Barbara Morgan

    For all the good it will do if they are Republicans, start emailing your representatives and senators and tell them you are sick and tire of them not representing you and other citizens that aren’t worth millions. To stop thinking about their bottom line and consider the bottom line of the majority of the people in this Country including the poor and the seniors(who have paid into SS for 40 or more years only to have Presidents and Congresses to steal money from it) and close loopholes for themselves and the rest of the rich while leaving SS, Medicare, government employees pensions,which includes veterans, Medicaid and the affordable medical act along. Tell them it is time for them and the rest of the 2% pay their fair share in taxes.