Under Obama’s Tax Proposal, EVERYONE Gets a Tax Cut
(By Fay Paxton, cross-posted at The Pragmatic Pundit)
I hear the Republican narrative and wonder how patriots could be so manipulative, but then I hear the American people respond and wonder how so many people could be so easily misguided. But then again, to be perfectly honest, even President Obama’s explanation is not on point either.
If you listen to media reports and the Republican mantra, you believe that President Obama is proposing a tax increase on wealthy Americans; that he is waging “class warfare”. The truth is, he is proposing to continue the Bush tax cuts for everyone who earns up to $250,000. That includes millionaires, multi-millionaires and billionaires as well.
It’s really quite simple; all income over $250,000 will be taxed at the rates that existed before the Bush Tax cuts were enacted. In other words:
* if you earn $250,000, your tax rate will continue at the present rate.
* if you earn $251,000, you will pay the existing rate on $250,000; the increased rate on $1,000.
* That same formula applies to a millionaire, who would pay the existing tax rate on $250,000, but would be taxed on the remaining $750,000 at the 39.6% rate.
Where is the class warfare? The rates apply to everyone. More importantly, the only ones who would pay more taxes are those who earn in excess of $250,000 and those ARE NOT what we call small businesses, despite what you’re being told, or I should say sold. So when Republicans claim that this is an attack on the wealthy and job creators, they are again flat-out lying. The tax cuts, that everyone calls “middle class” tax relief extend to every income-earning American.
I don’t know about you, but I’m sick of hearing about the elusive job-creators, who’ve had tax cuts for ten years and haven’t created jobs. Small businesses are entitled to plenty of tax write-offs, including auto expenses, health-insurance premiums, equipment costs, retirement plan contributions, and other business-related expenditures. Have you looked at the unemployment rate? Clearly tax-cuts make no difference. So I’m baffled at how Republicans can even continue to make this argument. What’s wrong with people that they even buy it?
It’s about demand. The corner Dairy Queen doesn’t close in the winter because of uncertainty or tax cuts; it closes because there is so little demand for ice cream in the wintertime. The same is true of any other business. There is little demand because people have no money. They have no money because they don’t have jobs. They don’t have jobs because businesses, despite all their tax cuts and massive profits, have not created any. They whine about uncertainty, taxes and regulations, but the truth is corporations are enjoying lower taxes than in decades and their profits have soared under Obama.
Something’s rotten in America
So what is the real reason corporations refuse to hire? You can’t say it’s ObamaCare because, in fact, they didn’t create jobs under Bush either. Clearly, it isn’t taxes because the rates haven’t changed in a decade. Perhaps a clue lies in mass layoffs, outsourcing, Citizens United, union-busting, minimum wages debates, right to work legislation, depressing the rights of women, children, gays, immigrants, voter suppression and a Congress that refuses to pass jobs legislation. All of which should tell you that “something’s rotten in America.”
“All we have to do is replace Obama. … We are not auditioning for fearless leader. We don’t need a president to tell us in what direction to go. We know what direction to go…. We just need a president to sign this stuff….
Pick a Republican with enough working digits to handle a pen to become president of the United States…. His job is to be captain of the team, to sign the legislation that has already been prepared.”
Tags: Bush tax cuts, GOP, Mitt Romney, President Obama, taxes
