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).
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.
Sink the ship already! Enough of these games.
I am all stocked up on freeze dried food, water, guns and ammo.
Raise the rate .001% ant tell the black bastard to sign it!!
No tax increases unless there are serious spending cuts to the departments and agencies that do not move our country, “forward,” Mr. President.
And the response should be, "There will be no deficit deal until Democrats offer up spending cuts and the spending cut bill is passed into law. Democrats have broken promise after promise and proved they cannot be trusted to do what they say they will do. In order to ensure a bipartisan solution, Democrats must act first."
I would like to see a tax increase for everyone who voted for and supported the Kenyan gangsta and his nightmare for America. It’s time those freeloading bass turds started paying THEIR “fair share”. This should be a “starting point” for Republicans.
The solution to the revenue side of the equation is to decrease the Standard Deduction. That is the fair and equitable revenue solution.
Any other deduction fiddling for those who itemize and neglecting those who do not itemize is blatantly unfair.
I can honestly say “I hate them all”. Other than a select few, Paul Ryan being just about the only one I can think of at the moment, I truly hate them all. They discust me, both parties.
Nam Vet
HEY Clink! Notice how my Tagline is just as apropos now as 3+ years ago?
The top tax rate is currently 35%. Once state and local taxes are added in the total rate is obscene.
I heard a person on radio today rationalizing increasing the rate, because Romney paid 14% last year. She forgets that he is retired and is paying on income from investments. He does not receive a salary. She also forgets that before he gets his money, it has already been taxed repeatedly.
The Left keeps wanting to tax the rich, but they forget that most of those who are really wealthy do not earn a salary, and will never be affected by a raise in taxes.
The Left will end up destroying the middle class in their effort to demonize the “rich”. They will destroy the same individuals, who create the jobs they currently have. There are times when I suspect that that is their ultimate goal anyway. Socialism cannot exist with a strong middle class, so its only way to success is to destroy those who produce wealth.
In most cases the individuals on which the Left wants to impose additional taxes worked hard and invested in their future. They pursued and education, set goals for themselves, and worked hard to build a future for themselves and their families.
I really have a problem with those who borrowed a large amount of money to go to a “prestigious” school (read expensive)and majored in an area they knew had limited potential. They are now part of the Occupy Wall Street Crowd, and demand that someone fix their situation.
Compared to the rest of the world even the poorest among us is very rich. All anyone has to do is visit India, Haiti, the Gypsies of Romania, or anywhere in Africa, and they will realize that America has really been blessed.
Obamanation Communism File.