Tuesday, December 18, 2012

Obama caves again to the wealthy. Raises taxes on middle class and poor!

WASHINGTON -- President Barack Obama, with his latest fiscal cliff offer, proposes extending the Bush tax cuts for everyone earning less than $400,000 a year, and paying for it by increasing taxes on the middle class and cutting Social Security and Medicare.

Obama's offer would allow the payroll tax holiday to expire, meaning middle class workers will see smaller paychecks in 2013. Economists have warned that the recovery is too fragile to risk a broad tax hike on workers. It would also gradually reduce Social Security, pension and Medicare benefits seniors are due to receive, taking a small bite up front, but building up to much larger cuts over time.

He does it again! Raises taxes on the middle class and poor and caves to the wealthy. Boehner and the GOP had NO CARDS and Obama still manages to lose this one! Unreal!!!

17 comments:

Tom Hickey said...

Oligarchical plutonomy. The establishments of both parties are neoliberals who think that the path to prosperity lies through fiscal austerity. Bonkers.

Wait, it gets worse. Did you see that Geithner has the inside track with Obama to replace Bernanke?

Of course, the president is then going to resurrect Scrooge to replace Geithner at Treasury.

As Daffy Duck would say, "What a revoltin' development."

Oh well, look at Obama's victory as the consolation prize for Romney/Ryan losing. Now that would really have been a revoltin' development.

Matt Franko said...

From a commenter over at Warren's:

"Irony: “A typical middle class family of four would see its taxes rise by $2,200 starting in 2013. Middle-class families can’t afford that.” http://www.whitehouse.gov/issues/taxes/tax-cuts

That's substantial!!!!

What a dope!

Jure Jordan said...

They believe we are in a recovery.

Dan Kervick said...

It's really an embarrassment watching these guys in the White House in action.

paul said...

Here's a perspective from a guy that I think knows what he's talking about:

http://crooksandliars.com/mike-lux/deal-would-stink

…although I wouldn't say he is in paradigm… almost no one is.

It isn't a done deal yet…one can always hope.

Bob said...

What will Paul Krugman say?

Pete Petepete said...

The top 10% of earners pay over 70% of ALL (federal) taxes.

It's shocking that those who have been free riding for years should pay for (part of) what they have been receiving? Oh the humanity!

Pete Petepete said...

Tom Hickey, you're misguided. Oligarchical plutocracy? Is that what you call social security, medicare/medicaid, and welfare, which take up the lion's share of the federal budget? You are arguing against empirical facts.

Bob said...

Pete ,let me lawyer up , lobbyists up, Politcal action committee up, and rig the system to enrich me, and rig the system to bail me out and when it goes south, get the sheeple to die to protect my castles and land when storm clouds threaten. Aholes rig the system to enrich themselves with creative bookeeping and carpet bagging, and sucking the capitol life blood from real creativeness, destroying the enviroment at all costs for profit. I say screw the LIBOR rigging, and the CFTC rigging and the "don't look don't tell SEC", and the ponzi partners from the FED, Treasury and Congress, all one big party, until one day it's over. When will it be over, when the sheeple realize they can't win. Get rid of the fed, give the money printing back to the treasury and claw back the trillions given to those who do "Gods work" and distribute it to the small local banks. IMO.

googleheim said...

The only folks having their property protected in New Jersey and New York are those properties
that exceed $1,000,000.

Just told my insurance adjustor friend who came back from Jersey.

The national guard machine guns are only protecting the rich home owners' stuff and not the middle and lower tiers.

Just like Katrina.

Just like 2008 economy nose dive.

googleheim said...

Rigged libor rates ?

we were talking about that here back in 2009

Adam1 said...

Pete, you must be a newbie. There is no “paying for” with regards to a fully sovereign fiat currency issuing government that lets its currency float on the FX market. It’s about real resource utilization. The government has the fiat resources to pay for whatever society wants it to buy. The only constraint is, are the resources available to fill those needs? With 20+ million under or unemployed and industrial utilization in the 70%’s it is a waste of governments capabilities to not push the nation to full employment so that people can earn incomes and not require government income assistance.

As for empirical facts… by accounting identity… the US Government Deficit (surplus) = Net Savings of the Private Sector + Net Savings of Foreigners (Capital Account or Inverse of Trade Deficit).

You want to lower the deficit; then you better go after reducing the savings desires of people (or the trade deficit). Reducing spending and or spendable income only shrinks the economy – not the deficit.

Additionally, the top 10% only pay 70% of all INCOME TAXES which only account for about 40% of government revenues. An additionally 40% of all revenues come from PAYROLL taxes – which are caped at about $110,000 in income.

paul said...

"The top 10% of earners pay over 70% of ALL (federal) taxes." - triple Pete

That's not surprising, since the top 10% earns 70% of the wages above subsistance-level. Income is taxed where it is found.

It's unclear how you can call everyone else freeloaders, being as taxes don't fund spending.

y said...

"The top 10% of earners pay over 70% of ALL (federal) taxes"

hmmm.

According to this:

http://www.whitehouse.gov/blog/2011/09/26/getting-facts-straight-americas-tax-burden

The top 10% earn 42% of total US income and pay 50% of federal taxes (income + payroll).

(They also own 70% of total US wealth).

Some Chris Hayes debunking goes on here:

http://www.youtube.com/watch?v=mk7wTLJfJdg

y said...

According to this:

http://ctj.org/ctjreports/2012/04/who_pays_taxes_in_america.php

In 2011 the top 10% earned 45% of total income and paid 48% of total taxes (federal, state and local).

Tom Hickey said...

Pete Petepete said...
Tom Hickey, you're misguided. Oligarchical plutocracy? Is that what you call social security, medicare/medicaid, and welfare, which take up the lion's share of the federal budget? You are arguing against empirical facts.


Pete, you seem to have missed the fact that the push of the far right since the New Deal has been to end SS, Medicare, Medicaid and all other social programs. "Starve the beast" was designed for that purpose." Instead of calling the right out on this, establishment Dems are going along with it based on debt and deficit hysteria, which are completely made-up for the purpose of advancing "starve the beast."

In a democracy, the bias is toward the majority imposing its will on the minority. That is what a republic is designed to prevent by ensuring that the elite remains in control.

In a capitalist society this elite is the acquisitive class. Therefore, it is the rule of a few, which is what "oligarchy" means, and the rule of the wealthy, which is what plutonomy means.

Polling shows that the public has been taken in by the debt and deficit hysteria but overwhelming it the majority wants higher taxes on the wealthy and no changes to social programs. The establishment Dems are ignoring this and are in the process of cutting a deal that favors the wealthy over the middle and bottom.

Tom Hickey said...

Pete Petepete said...
The top 10% of earners pay over 70% of ALL (federal) taxes. 

It's shocking that those who have been free riding for years should pay for (part of) what they have been receiving? Oh the humanity!


Irrelevant because taxes doen't fund govt. They are used to reduce inflation and to discourage negative and socially undesirable behaviors. Extreme inequality is a socially undesirable state that affects everyone by reducing the quality of life and shrinks the pie.

A proper tax policy would reward productive contribution and tax away economic rent, which is parasitical on circular flow.