Democrats are threatening to allow nearly $600 billion worth of tax hikes and spending cuts take effect in January unless the Republicans go along with allowing higher taxes for those making more than $250,000 a year. The threat has come to be known as “Taxmageddon,” and it seems the GOP is caving. After all, it’s an election year.
Just what will Taxmageddon do come January 1, 2013? It will begin,
raising rates on investment income, estates and gifts, and earnings at all levels. Overnight, the marriage penalty for joint filers will spring back to life, the value of the child credit will drop from $1,000 to $500, and the rate everyone pays on the first $8,700 of wages will jump from 10 percent to 15 percent.
The Social Security payroll tax will pop back up to 6.2 percent from 4.2 percent under the deal approved Friday by Congress. And new Medicare taxes enacted as part of President Obama’s health-care initiative will for the first time strike high-income households.
Some economists say it could push the fragile U.S. economy back into recession, particularly if automatic cuts to federal agencies, also set for January, are permitted to take effect.
This would basically be a huge blow to every American and the economy should the Democrats raise taxes on everyone, rather than get their way of only giving tax cuts to some and not to others. It is a shameful ploy to threaten the American people with taxes in this manner.
Sen. Patty Murray (D-WA) said, in a speech she plans to give on Monday,
“If we can’t get a good deal, a balanced deal that calls on the wealthy to pay their fair share, then I will absolutely continue this debate into 2013.”
My goodness! These dimwitted people up there play with people’s lives like their own is at stake and they think they are doing a service to America. I’m not among the very rich. In fact, I am considered poverty level by the government, though I don’t consider myself poor by any sense. But to say something as asinine as calling “on the wealthy to pay their fair share” just shows why your party’s logo is an ass! The wealthy do pay their fair share. They pay far more than any of the rest of us.
The Washington Post reports,
If the tax cuts from the George W. Bush era expire and taxes go up for everyone, the debate will be reset, Murray is expected to say. “Every proposal will be a tax-cut proposal,” according to the excerpts, and Republicans would no longer be “boxed in” by their pledge not to raise taxes.
But they are boxed in because the taxes will increase on certain people. Not only that but taxes have been increasing over the past two years because of the Obamacare law. Furthermore Ms. Murray plans to say,
“If middle-class families start seeing more money coming out of their paychecks next year, are Republicans really going to stand up and fight for new tax cuts for the rich? Are they going to continue opposing the Democrats’ middle-class tax cut once the slate has been wiped clean? I think they know this would be an untenable political position.”
Again, they have been going up! More money has been taken out of the middle-class. Just remember the tax returns you filed this year.
Murray is expected to claim that “Democrats are willing to compromise. We just need a partner.” The problem is that they are not willing to compromise. They have put out something that is meant to be a political hot potatoe and have no intentions of compromising anything in their proposal.
While it may get the adrenaline going for the Democrats, Senate Minority Leader Mitch McConnell (R-KY) called the position an “outrageous ultimatum.”
“At a moment when the American people are reeling from the slowest recovery in modern times . . . and just five months away from the economic body blow that will result if tax rates spike, as scheduled, on January 1st, the president’s solution is to take more money away from the very business folks we are counting on to create the jobs that we need,” McConnell said in a speech Thursday. “Naturally, Republicans oppose this. The way we see it, nobody should see an income tax hike right now.”
When it comes to compromise Rep. Jeb Hensarling (R-TX) said, We were on the record saying we would agree to a conventionally scored tax increase if they would clear out the tax code, make it fairer, flatter and simpler and begin to take us off the road to bankruptcy on entitlements. And they weren’t willing to do it.”
One thing is for sure in all of this and that is that we can see from the statements of Patty Murray just which party actually cares about some bit of fairness across the board when it comes to taxation. The Democrats are more than willing to throw each and every American under the tax bus in order to get their way.
The easiest way to put this is the Democrats are willing to raise taxes on everyone, while the Republicans are trying to advance fair tax cuts for everyone. It appears now that the Democrats are trying to hold America hostage. The question is, will they succeed?