Don’t you get sick of the word games the politicians play? There is no end to the attempts to confuse the public with slick rhetoric. Let’s break this down.
1. The so-called Bush tax cuts were enacted in June 2001. The actual name for the legislation is the “Economic Growth and Tax Relief Reconciliation Act of 2001.” This was the result of the usual Republican mantra that the federal government taxes people too much. Some of the provisions were to be phased in gradually.
2. Because the Bush tax cuts were not paid for, that they would add to the deficit, they came up against the Byrd rule named after the late Sen. Robert C. Byrd. No legislation that is part of a budget reconciliation bill could be permanent if it would raise the deficit without a corresponding plan to pay for it within a certain time span. To get past the Byrd rule, the Bush tax cuts contained a sunset provision stating that they would automatically expire after 10 years unless they were paid for. The 10 years is up as of January 1, 2011.
3. Another Bush Tax Cut bill was passed in May 2003. This was designed to speed up the provisions of the first tax cut bill. It’s known as the “Jobs and Growth Tax Relief Reconciliation Act of 2003.” This was set to expire at the same time as the first tax cut bill.
4. We have now reached the end of the line on the Bush tax cuts. Unless Congress acts, they will expire and taxation rates will return to what they were before the tax cuts were enacted. This will happen on January 1, 2011.
5. Republicans are saying that all Bush tax cuts should be extended permanently. Democrats are saying that the tax cuts on the wealthy should expire, but the tax cuts that affect the middle class should be made permanent. Neither action conforms to the Byrd rule, and the deficit would be increased by trillions.
6. As you listen to the debate, focus on that word “permanent.” President Obama is stating that the country can make the middle class tax cuts permanent but that it cannot afford to make the tax cuts for the wealthy permanent.
7. That does not preclude extending the tax cuts “temporarily.” Republicans and Democrats are indicating that there may be room to compromise. They could extend all the tax cuts for 2 years. This still ignores the Byrd Rule because it will greatly add to the deficit. What this really amounts to is the process known as “kicking it down the road.” Deal with it later.
8. Realistically, the country can’t afford continuing any of the tax cuts. If Congress does nothing, the tax cuts will expire.
9. We need Congress to do what it does best.
10. Do nothing. Yes, you can.
©2010
The Massachusetts Observer
There are so many people today living just at that spot where they don't qualify for help, but they don't earn enough to get by. A living wage would be a wage that would be enough to allow folks to have food, clothing, medical care, and warmth in the winter - and it should allow cooling in the summer, a little entertainment now and then, and the hope that children could get an education beyond high school. But they don't earn a real living wage.
ReplyDeleteOf course, those on the right tell them to save up and do all these things with their meager paychecks that barely allow them to eat properly. For these people taking back that tax cut is a very big deal. I would hope that our leaders would feel enough moral responsibility not to take that away.
For those who make over $250,000 and are complaining that it's just not fair to end the tax break on the money they make in excess of that $250,000, I would hope that our leaders would end that tax break, and work towards wage fairness in this country.
Whatever the right would call it today, "trickle down economics" never worked and it never will. If these guys want to tinkle, whoops, I mean trickle, they should find themselves a planet where the inhabitants like to be trickled on. This ain't it.
I'm trickled off.
ReplyDelete