Obama’s Tax Cuts – Two Votes: One For The Middle Class, One For The Wealthy

by Ben Hoffman

His position, he said, is to work first on an extension of the tax cuts for those making less than $250,000 a year. After that, Obama added, Republicans and Democrats can debate or vote on whether to continue extending the tax cuts for the wealthy.

“My position is, lets get done what we all agree on,” said the president. “What they’ve said is, ‘We all agree that the middle-class tax cuts should be made permanent. Let’s work on that, let’s do it.’ We can have a further conversation about how they want to spend an additional $700 billion dollars to give an average of $100,000 to millionaires. That, I think, is a bad idea. If you were going to spend that money there are a lot of better ways of spending it. But more to the point, these are the same folks who say they are concerned about the deficit — why would we borrow money on policies that won’t help the economy and help people who don’t need help.”

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8 Comments to “Obama’s Tax Cuts – Two Votes: One For The Middle Class, One For The Wealthy”

  1. Well, the prez says, “My position is, lets get done what we all agree on…We can have a further conversation about…”

    Besides then distorting the facts, this idea of getting done what they all agree on was precisely what Republicans wanted to do on health care reform. But no. Big O and Pelosi and Reid had to ram it through in a partisan manner. NOW he wants to do things piecemeal. Funny.

    But here is the Natl. Federation of Independent Business on the tax increases looming if Bid O gets his way,

    “According to an NFIB poll, 75 percent of small businesses are organized as pass-through
    entities (sole proprietors, partnerships, S Corps, etc.), meaning they pay taxes on their business
    income based on the individual tax rates.

    • Increasing the individual rates will mean that business owners have less money for business
    investment and job creation. One study found that a 5 percent increase in individual tax rates
    decreases business investment by 10 percent. (Robert Carroll, “Entrepreneurs, Income Tax, and
    Investment, January 1998).

    • Raising the tax rates on the top two income brackets also has a negative impact on small
    business job creation. Based on an NFIB small business survey, the businesses most likely to
    face a tax increase by raising the top two rates are businesses employing between 20 and 250
    employees. According to U.S. Census data, businesses with between 20 and 299 workers
    employ more than 25 percent of the total workforce.”

    Punish the job creators, baby!

    • Raising the tax rates on the top two income brackets also has a negative impact on small business job creation. Based on an NFIB small business survey, the businesses most likely to face a tax increase by raising the top two rates are businesses employing between 20 and 250 employees. According to U.S. Census data, businesses with between 20 and 299 workers employ more than 25 percent of the total workforce.

      Author: a shill for the Republican party

      Okay, a little basic logic here.

      Set A = Companies employing 20-299 workers
      Set B = Companies with profits greater than $250k
      Set C = Intersection of Set A and Set B

      Set A is not the set that will have their taxes increased. Set C is the set that will have their taxes increased, and only their profits over 250k will be taxed at a higher rate. So their taxes will still be lower than during the 90s when the economy was booming, especially for small businesses.

  2. DETROIT – New General Motors Co. CEO Daniel Akerson will get the same $9 million pay package as the man he replaced, Ed Whitacre.
    The automaker, which is 60.8 percent owned by the U.S. government, disclosed the pay package in a filing on Friday with the Securities and Exchange Commission. It is identical to what the company disclosed for Whitacre in February.

    Don’t do as I do, do as I say… 🙂

  3. President Obama was facing a mutiny within his own Democrat Party tonight over his pledge to deliver tax cuts for America’s struggling middle class.

    “A group of 31 rebel Democrat congressmen and women have broken ranks to demand that all income levels are given tax breaks, including the wealthy.

    Mr Obama insists he is targeting Americans earning less than £160,000-a-year.

    But the breakaway Democrats fear that increasing taxes, even for the rich, could jeopardise the party’s chances in the looming mid-term elections.
    Barack Obama”

  4. We can have a further conversation about how they want to spend an additional $700 billion dollars to give an average of $100,000 to millionaires. That, I think, is a bad idea. If you were going to spend that money there are a lot of better ways of spending it.

    The question is this:

    Who will spend that $700 billion better? The government or the people who know how to take money and make more money?

    Which will help the economy more?

    If you want to talk about the deficit, you NEED to talk about government spending. After all, it’s not like it’s the government’s money that is being “taken” by anyone. It’s the opposite.

    • [Which will help the economy more?]

      Since the wealthy are already sitting on tons of cash, giving them more cash isn’t going to help the economy one iota.

      Spending money on infrastructure creates jobs plus we get an improved infrastructure. The workers then pay a portion back in income taxes. Blue collar workers are more likely to put money back into the economy by spending their income, which creates more demand and more jobs.

      • Since the wealthy are already sitting on tons of cash, giving them more cash isn’t going to help the economy one iota.

        Do you think that the rich put their money in a jar, bury it in the yard and forget about it?

        Nope.

        They spend it or invest it. They build it.

        Spending money on infrastructure

        We should be doing THAT already. Explain to me where the money that should be spent on routine maintenance went to? Why has that been pissed away?

      • No, when they have surpluses, they use it to buy up other businesses.

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