We’re not talking about tax CUTS
By Mr. Obama’s economic logic, tax increases matter on middle-income earners but are irrelevant to everyone else. “By the way, these tax cuts for the wealthiest Americans are also the tax cuts that are least likely to promote growth,” as he put it Monday.
But Mr. Obama is demanding tax increases, not tax cuts, and large increases at that. If the Bush tax rates expire as scheduled on December 31, rates on the top two income brackets will jump to 39.6% from 35%, and 36% from 33%. Add the scheduled return of income phaseouts for exemptions and deductions, and the rates go up another two-percentage points—to at least 41% and 35%.
Obama doesn’t want to cut taxes for those earning $200,000. For them, he merely wants them to remain the same. He wants to RAISE taxes on everyone else.
And, it’s only a one-year extension.
Let’s not hold the vast majority of all Americans and our entire economy hostage while we debate the merits of another tax cut for the wealthy,” Mr. Obama said at the White House.
Yes, but it’s not a cut. Nothing is being cut. It’s status quo. NOT a CUT.
Mr. Obama said at the time that he wouldn’t extend all the tax rates again, and on Monday his spokesman, Jay Carney, promised the president would veto legislation being pushed in the House that extends the lower rates for everyone again.
But raising taxes on Teh Rich is going to work, says Obama:
Not extending the Bush-era tax cuts on high-income earners, the president said, would “grow and strengthen the middle class.” Obama preempted Republican criticism by arguing that his is a policy supported by the American people — opposition, one assumes, comes from those with Range Rovers and chiffon dresses — something demonstrated in “poll after poll.”
Yea, that makes sense. Raising taxes on Teh Rich is good for one person – Obama.
Raising taxes on people who aren’t you is something easily sold to voters, but that doesn’t mean it’s smart economics.
Now, for a dose of insanity. Dana Milkbank:
He appealed to reason: “I just believe that anybody making over $250,000 a year should go back to the income-tax rates we were paying under Bill Clinton.”
And he made clear that he was making his proposal with reluctance: “It’s not like I like to pay taxes. I might feel differently, if we were still in surplus. But we’ve got this huge deficit.”
Obama’s point about the Clinton years is solid, and he is correct about the politics.
Ugh, WRONG, Dana. Quiet now, while the grown-ups (at the WSJ) talk.
It ignores his ObamaCare tax increase of 0.9% on top of the current 2.9% Medicare tax, plus a new 2.9% surcharge on investment income, including interest income.
That’s an additional 3.8% surcharge on investment income, and added to the Bush expirations would take the capital gains rate to 23.8% from 15% today, and the dividend tax rate to about 45% from 15%.
Obama is off to talk taxes today, with a family at Iowa and at a community college.
9:25 am || Departs White House
10:50 am CT || Arrives Cedar Rapids, Iowa
11:20 am CT || Holds a roundtable discussion with a local Iowa family; private residence, Cedar Rapids
12:50 pm CT || Delivers remarks on the Bush tax cuts
3:40 pm CT ||Departs Cedar Rapids
6:55 pm || Arrives White House
Campaigner-in-Chief. It’s all he does.