Tag Archives: Tax cut extension

11 Deceptions About the Tax Debate

Below are the Whitehouse.gov’s “11 Facts About the Tax Debate.”  As usual, they are out of context, disproportioned, deceptive, and out right false briefing points.  Here are just a few reasons why they are nothing more than election year red herrings.  (A fitting expression for such socialist ideals.) WH.gov points are in italics.

1.     Nearly $1 Trillion would be added to our deficit over 10 years under the Republicans’ proposal to continue tax cuts exclusively to households making more than $250,000 a year and to the wealthiest estates.

Only 1 Trillion in 10 years?  That sure is a better than Obama’s plan strapping us with over 10 Trillion more debt in the past 4 years, and much more in the next 10.  Republican tax cuts to those who are producing jobs realistically stimulate the economy.  History tells us that lower tax rates produce greater employment thus greater tax revenue 100% of the time!  Are 100% to 0% not good enough odds?

2.     Only 2 percent of American households will benefit from the Republicans’ proposal to extend tax cuts for those with incomes higher than $250,00 a year.

Actually 100% of Americans will benefit.  Those 2% are the ones investing in America and want to do more so more people can be employed, pay taxes, spend and invest.  All studies of history and economic models show that the sweet spot is about 17% across the board.  I.e. a flat tax of 17% produces the maximum revenue by allowing maximum employment and investment.  Thus we’re killing our selves by trying to squeeze more money than we can afford, which kills our ability to earn more.

3.     Under President Obama’s proposal, only the wealthiest 3 in 1,000 estates would owe any estate tax.

So only the wealthiest 0.3% will pay estate taxes?  He’s bragging about this?  Notice he doesn’t compare it to a Republican plan; a sure sign they have a better idea.

4.     Over the past 4 years, a typical family making $50,000 a year has received tax cuts totaling $3,600 – more if they are putting a child through college.

The White House fails to mention that our average income decreased 3.02% from 2008 to 2010.  For a $50K household, a loss of 3.2% is $1,600.

Inflation due to the Fed creating money, “monetizing the debt,” “QE3,” “printing money,” “digitizing money,” you name it.  Inflation was 4.46% in 2011 alone.  That has lowered the value of $50K by $2,238.

Those two factors alone add up to $3,830.  So even if your “tax decrease” was real, your average $50K family lost $283 per year.  Does the WH call these bragging rights?

They also fail to mention that he’s just Nationalized ALL student loans, (so he can forgive a great proportion of them).  That will cost “average” taxpayers more money.  So there are several ways we all pay for other people’s children to go to school.  Obama said, “those making under $250,000 won’t see a tax increase.”  Yup, they just won’t see it.

5.     5 million families would no longer be eligible for the child tax credit under the Republicans’ tax proposal.

Truth be known, both parties support a modification to the Child Tax Credit.  It is due to expire, so the debate is only which plan to adopt.

Additionally, the Treasury Department reports that illegal immigrants filing tax returns using the Individual Tax Identification Number are receiving more than $1.5 billion each year from the federal government through the Child Tax Credit and the Additional Child Tax Credit.  Need a fix?

6.     Because Republican proposals cut the Earned Income Tax Credit, nearly 6 million working families with children would see their taxes increase – averaging $500 apiece.

The WH has cherry picked only the most conservative of many Republican plans.  Many, if not most, do not affect this Credit.  In support of those that do, this Credit pays able people for not working.  We have enough of that.  What is not mentioned is that this proposal also abolishes tax code exemptions and credits for the rich and big business.  Everyone who is able needs to pay something.  It keeps us all responsibly involved in government.

7.     The President’s plan includes almost $700 billion in tax credits to help middle class families pay for health insurance over the next 10 years through the Affordable Care Act.

Somehow we’re to believe we aren’t going to pay the $700 billion.  That $700,000,000,000 comes from taxes.  How many will loose jobs because companies are forced to cut employment or go bankrupt because they have to pay fines, (oops “taxes,” oh no “fees,” wait “taxes,” whatever)?  They’ll have to pay much more just to employ people.  That isn’t going to help employment or the tax base.

Thus Obama Care will increase the number of folks relying on taxes to support them and pay for their healthcare, thus driving that 700 billion estimate off the scale.  This is a “Cloward and Piven” plan, plain and simple.  “Overload the economic system through escalating the need for entitlements by the increased tax load to fund them.  Mr. Obama once taught the Cloward and Piven’s strategy to collapse capitalism.  Now he’s implementing it.

It has become common to name a Law the opposite of its worst feature to mask its true identity, i.e. ”The Federal Reserve” which is private and has no reserves.  Would you vote for the “Unaffordable but Compassionate Care Act”?

8.     The top 2 percent of households, with and average of $800,000, would see additional tax cuts under the Republican plan.

… as would most income brackets.  These wealthy people are already in the highest tax bracket.  This misleading information only mentions the cuts and not the main part of the plan that drastically removes tax exemptions in the first place.  Most Republican restructuring is designed not only to simplify taxes and reduce exemptions, but also to incite job creators.  Read the bills!

9.     Under the President’s plan, income tax rates for high income households would return to the same tax rates as in the ‘90s.  During that period, the United States created 23 million jobs and ran a budget surplus.

Remember the 17% rule?  Higher tax rates actually produce less revenue than lower rates above 17%.  When Bush lowered the tax rate in 2003, the tax revenue actually increased due to greater employment and higher wages.  Even Obama agreed to extend them for that reason.

It isn’t trickle down, it is flow down, and the government needs to be at the bottom of the flow, not the top.  Under the Republican plan everyone’s effective tax rate would be reduced, causing greater employment thus more tax revenue.  Businesses would be incented to locate and operate here in the US rather than overseas.

The government doesn’t create jobs, the people do.  Even government jobs are created out of the people’s tax dollars.  The government doesn’t build anything; we do, to include the government.  When the government uses our money to build inefficient, ineffective, failing, or just plain fraudulent institutions, we pay the price.

For example, the 90s is when the Liberals were most influential at inflating the housing bubble by incentives to lend to those who couldn’t afford those loans and eventually penalizing lenders that did not.  That escalated inflated prices that eventually had to burst.

10.     The President’s plan would continue the 10 percent tax bracket, which allows everyone to pay a 10 percent tax rate on their first $8,900 in income (or $17,800 for married couples).

Notice there is no mention of a Republican plan here, because under the Republican plan, middle-income families of four pay no taxes on the first $39,000 of its income.

So the President is bragging about doing nothing?  I have to admit, doing nothing has been one of his least problematic qualities.

11.     The Republicans plan eliminates the American Opportunity Tax Credit, meaning 11 million families and students paying for college would see an average tax increase of $1,000 each.

Actually there is no tax increase involved.  It means that the $1,000 credit for having a child in college expires December 31st 2012.  Both parties have competing plans for an amended version.  Reality always sounds a little different than WH talking points.

So shall we talk about unemployment?  How about why businesses move jobs overseas?  How about Agenda 21, (disguised as “Sustainable Development)?  Can we discuss how many more doctors will be created under Obama care?  How about illegal aliens; Homeland Security that considers “we the people” a greater threat than rife illegal boarder crossings?  Let’s discuss why the US prosecutes innocent supporters of the GOP (i.e. Gibson guitar), while allowing anything black, or Muslim, or alien, or Occupy movements go unprosecuted, (per stated administration policy).  How ‘bout that Medicare?  Social Security?  Where do those fit in your list to debate?

Barack Obama was right about “Hope & Change.”  Never has America hoped for change more than now.

God bless America.

Payroll Tax Cut : House GOP Call Harry Reid’s Bluff

The battle to extend the payroll tax cuts until the end of this year has reached a very welcome milestone recently. The House Republican leadership announced a clean tax cut extension bill yesterday, that does not include the added unemployment extensions nor the extension of the medicare “doc fix” that has been required since the passage of Obama-care, (which lowered the payments received by health-care providers in order for Obama to claim that the passage of Obama-care would result in the reduction the national debt.)  The GOP is calling Senate Majority Leader Harry Reid’s (LD-NV)  bluff by dropping any demands for offsets to pay for the tax cut extension.  Speaker Boehner is calling for a vote on the bill this week, depending on how the rank and file House Republicans react to it.

Daniel Horowitz offers the GOP some very sage advice in moving forward on the unemployment extensions and medicare “doc fix” after forcing Harry Reid to bring the clean tax cut extension to the Senate floor for a vote: (emphasis added)

They (Republicans) are leaving out the entitlement spending extensions and daring Senate Democrats to oppose their clean tax cut – one that they have “championed” for the past few months.

Going forward, Republicans must stand strong against pressure to slip the entitlement spending into the payroll tax cut deal.  Once they are free from the burden of shooting the hostage (the tax cut), they should negotiate hard for the rest of the package.  They should be guided by the following principles:

  • No extension of UI benefits unless UI is permanently reformed to reflect a real insurance program, not a European-style social welfare program.
  • No extension of doc fix until Medicare is permanently reformed with free-market solutions to bring down the broader costs and preempt the need for doc fix or any payment formula.
  • Both extensions must be paid for with real offsetting cuts during the period of the extension, not over 10 years.
  • We should be working on a long-term solution for the payroll tax now, so we won’t fall into the same trap next December when we will be forced into another ineffectual short-term stimulus type of tax cut.

 

Now if Senate Republicans will just follow the House’s lead and show some backbone in blocking Harry Reid’s sure-to-come counter-proposal, Republicans will gain the leverage needed to deal with the never-ending federal unemployment benefits and the doc fix without adding to the destructive debt-cycle Democrats have put America into over the last 3-plus years of trillion-dollar deficits. Senator Mitch McConnell? You and Senate Republicans are soon to be the next in line to step up to the plate and reinforce the House Republicans clean tax cut extension bill. Don’t strike out. America is watching.

Payroll Tax Cut : House GOP Call Harry Reid's Bluff

The battle to extend the payroll tax cuts until the end of this year has reached a very welcome milestone recently. The House Republican leadership announced a clean tax cut extension bill yesterday, that does not include the added unemployment extensions nor the extension of the medicare “doc fix” that has been required since the passage of Obama-care, (which lowered the payments received by health-care providers in order for Obama to claim that the passage of Obama-care would result in the reduction the national debt.)  The GOP is calling Senate Majority Leader Harry Reid’s (LD-NV)  bluff by dropping any demands for offsets to pay for the tax cut extension.  Speaker Boehner is calling for a vote on the bill this week, depending on how the rank and file House Republicans react to it.

Daniel Horowitz offers the GOP some very sage advice in moving forward on the unemployment extensions and medicare “doc fix” after forcing Harry Reid to bring the clean tax cut extension to the Senate floor for a vote: (emphasis added)

They (Republicans) are leaving out the entitlement spending extensions and daring Senate Democrats to oppose their clean tax cut – one that they have “championed” for the past few months.

Going forward, Republicans must stand strong against pressure to slip the entitlement spending into the payroll tax cut deal.  Once they are free from the burden of shooting the hostage (the tax cut), they should negotiate hard for the rest of the package.  They should be guided by the following principles:

  • No extension of UI benefits unless UI is permanently reformed to reflect a real insurance program, not a European-style social welfare program.
  • No extension of doc fix until Medicare is permanently reformed with free-market solutions to bring down the broader costs and preempt the need for doc fix or any payment formula.
  • Both extensions must be paid for with real offsetting cuts during the period of the extension, not over 10 years.
  • We should be working on a long-term solution for the payroll tax now, so we won’t fall into the same trap next December when we will be forced into another ineffectual short-term stimulus type of tax cut.

 

Now if Senate Republicans will just follow the House’s lead and show some backbone in blocking Harry Reid’s sure-to-come counter-proposal, Republicans will gain the leverage needed to deal with the never-ending federal unemployment benefits and the doc fix without adding to the destructive debt-cycle Democrats have put America into over the last 3-plus years of trillion-dollar deficits. Senator Mitch McConnell? You and Senate Republicans are soon to be the next in line to step up to the plate and reinforce the House Republicans clean tax cut extension bill. Don’t strike out. America is watching.