White House: No debt deal unless tax rates on top earners go up

The Hill ^ | November 29, 2012 | Amie Parnes

[yoe]

White House press secretary Jay Carney said Thursday there will be no deficit deal unless Republicans agree to raise tax rates on the wealthiest households.

[snip]The president wants tax rates extended on all households below that threshold, but says rates above it should be phased out.

[Rapscallion]

Jay Carney said Thursday there will be no deficit deal unless Republicans agree to raise tax rates on the wealthiest households.

Okay. That is it. Take him at his word and wait. When the cuts automatically begin be sure to tell the public WHY this is happening and lay on the blame as Obama has done so readily!!!!

[Adder]

Thasts only a small tax...just a leetle more...Plus the surtax plus the zerocare taxes plus plus plus...the wealthy in this country are going to get a huge screwing.

Once.

Then there will magicly be no wealthy folks..

Shut the damn thing down. DARE them to do something. Just stop ALL spending.

See who blinks.

[Not that the pubbie leadership has the ballz to do it...its still what should happen...]

[Rapscallion]

They need to tax the people who aren't paying any income taxes. Start there. That will get their attention!

[blues-train]

Interesting that the press is finally inserting a hint of honesty it “terms”. Up until now, “tax increases” for the rich were labeled “expiring Bush Tax Cuts”. Now, when the middle class might be involved, the White House is labeling those same “expiring Bush Tax cuts” as “tax increases” since they effect the middle class.
The republicans have neither language skills nor the balls for this fight.

[Enterprise]

For cryin’ out loud Boehner! Have the House go into recess until after January 1.

[blueunicorn6]

No income tax refunds for a year.

[Eleutheria5]

I believe he’s got an office boy hard at work at that very task.

[Gene Eric]

Amazing how many idiots are willing to indulge the insatiable appetite of govt at the expense of the private sector.

[elkfersupper]

The republicans have neither language skills nor the balls for this fight.

Amen.

It's all live theatre anyway.

[1010RD]

I think sequestration is the best thing. Once the economy stumbles and slows there will incredible pressure on the liberals to reduce marginal tax rates and broaden the base. The “tax the rich” argument is nonsense, but it plays well to the people.

Let the spending be cut. We can afford it and it’s necessary.

[dinodino]

That’s a good idea! No EITC and no refunds.

[lgjhn23]

Mr. Speaker: Adjourn the House and say “We’ll see ya next year. And Oh, that cliff thingy? You OWN it.”

[socialism_stinX]

The House Republicans must stand strong and refuse to raise the top ordinary income rate of 35%. That is the marginal rate paid by a lot of small business owners and raising that rate would definitely slow down economic growth and job growth. All reputable economists agree on that principle--the only question is how much a marginal tax increase slows down growth. Boehner and McConnell need to bring in some top conservative economists to help make that case for them publicly.

Democrats often bring up the Clinton administration and point to the strong economic growth in Clinton's second term despite higher tax rates at that time. What that economic history demonstrates is simply that marginal tax rates are not the ONLY key factor affecting economic growth. After the Clinton tax increase, economic growth was slow and steady in Clinton's first term, mainly because of very strong demographics in America at that time. The mid-point of the Baby Boom generation turned 29 years old in 1993, the first year of the Clinton Adminstration. During the next eight years almost all the Boomers moved into their 30s and early 40s, which are the years when people buy the most big-ticket items, such as houses, appliances, furniture, and motor vehicles. Strong demographics kept growth going in Clinton's first term, despite the tax increases, and then our economy got a big break in Clinton's second term: the rapid initial build-out of the commercial internet occurred in Cinton's second term. The growth of the internet, combined with strong demographics, was powerful enough to overpower the economic drag from higher tax rates. But today we are an older country with much weaker demographics, and the internet has been almost completely built out in America and is no longer a big source of economic growth. There's no Big New Thing on the horizon to spark economic growth. So today we can't afford the economic drag from higher marginal tax rates on business owners. The democrats need to get their economics straight and stop using politically-oriented polling to determine their tax policy. Raising marginal rates on business owners and top professionals is a really bad idea for our economy today. We're already growing very slowly and higher marginal tax rates on business owners will only slow our economy even more.

Here's what I suggest the House Republicans offer in this deficit-reduction deal--Keep the top rate on ordinary income at 35% and then offer to: 1) Limit total itemized deductions to $100K for everyone, regardless of how much mortgage interest people are paying, 2) Raise the top rate on dividend income to 19% from 15% on income above $500K (with the Obamacare tax added in that takes the total rate to about 23% on income above 500k), 3) Increase the rate on the lowest bracket to the rate for the second lowest bracket for people earning more than $500K, 4) As a final offer, bump up the rate on long-term capital gains and carried interest on private equity investments from 15% to 17% (before Obamacare taxes). I would make that offer and say: that's all you get and additional revenue has to be generated through stronger economic growth.

Score that proposal, see how much increased revenue it generates, and then make sure you get spending cuts equal to that amount. Start by cutting the vast Obamacare bureaucracy that I've read about--which reportedly has a planned workforce of 150,000 government employees, IN ADDITION to all the people who already work in health care administration in the health insurance companies. That 150,000, if correct, is absolutely mind-boggling. They couldn't possibly need more than 8,000 people, using good information systems, to administer the entire Obamcare law (in addition to the people already working for health insurance companies).

[af_vet_1981]

I don’t think Obama/Reid/Pelosi have any intention of cutting entitlement spending for the 47% ever. They intend to cut spending that they perceive as beneficial to Republican supporters. The United States are no longer united. Democrats have killed the union.

[socialism_stinX]

Correction to item 4 above: I forgot to say that this increase in the long-term capital gains rate and the rate on carried interest should only be on income above $500K.

[cableguymn]

Bonehead and co in the house can cut off funding to everything.

They won’t.

but they could.

There is a reason the founders put control of the money in the house. Sadly, they never realized that at some point the house would be full of spineless Rino’s.

[RedMDer]

Let's Put This Baby To Bed!! Less than $2.7k to go!! 270 FReepers with $10 or 27 FReepers with a $100 and we are over the top. How about it FReepers. Any takers?

Let's Put This Baby To Bed!! Less than $2.7k to go!! 270 FReepers with $10 or 27 FReepers with a $100 and we are over the top. How about it FReepers. Any takers?

[Red in Blue PA]

Sink the ship already! Enough of these games.

I am all stocked up on freeze dried food, water, guns and ammo.

[rcrngroup]

I agree with everything you said about Congress (the House) grounding 0dumb0's travel especially his freguent (weekly) boon doggles, etc., etc.

Now if only the Pubbies had the balls of a one-celled organism, it might work. However the Pubblies will never do it. They (especially the Pubbie leadership) are scared SHITLESS of 0dumb0 & the demoRATs.

Let the country go down the crapper is what I say!
Bring it on!
Fiscal cliff, go for it!
Rioting in the streets, hilarious (especially when the blacks burn down their own neighborhoods)
Vigilante squads to patrol our neighborhoods, sounds great, sign me up!

[Nowhere Man]

Vigilante squads to patrol our neighborhoods, sounds great, sign me up!

Well, I know lots of places are losing police protection and the sort, I often said that maybe we need volunteer police departments. Me, I'd buy a 1965 Ford Galaxie and/or 1968 Mercury park Lane (like McGarrett from Hawaii Five-O), shove in a VHF/UHF and/or CB radio, carry a .38 revolver and off we go. B-)

I would not mind a 1967/68 Chrysler made car like in "Adam-12" or perhaps a 1969 Plymouth like the Penna State police used.