The leaders of the Congressional Progressive Caucus want a meeting with Nancy Pelosi to urge her to hold a vote on the Bush tax cuts for the middle class, excluding the tax cuts on those making over $250,000. Raul Grijalva and Lynn Woolsey point out in the letter to Pelosi that this proposal would save $680 billion dollars over the next ten years, close to $1 trillion if you include the interest on the debt.
The Treasury Department estimates that President Obama’s tax proposal will collect $41 billion in additional revenue in Fiscal Year 2012 and $680 billion over the next ten years. If we are serious about cutting our budget deficit, we must allow the Bush tax cuts for the wealthiest to expire. Before President Bush’s tax cuts were enacted, the federal budget had a steadily rising surplus that the Congressional Budget Office (CBO) estimated would hit 5.3 percent of GDP by 2011. Within a few years of the enactment of the Bush tax cuts, these projections turned to deficits.
Therefore, we believe extending the Bush tax cuts would be a giveaway to the nation’s wealthiest people and would significantly increase government debt. This debt, in turn, will be paid by the lower and middle classes through increased interest payments and decreased social services for generations to come. This astronomical sum could instead be used to close our budget deficit. It is critical that we pass President Obama’ s middle-class tax proposal without providing an even greater lift for the wealthiest Americans who don’t need it.
Grijalva and Woolsey have addressed the right person with their comments – Nancy Pelosi. She holds the ability to take a vote on the middle-class tax cuts in her hands. The President and his staff have been uniquely unhelpful in this matter with their varying and conflicting statements on the issue, but at the root, Pelosi needs to have the votes to pass a middle-class tax cut alone, in order to get it done. Before the midterms, it was pretty clear she didn’t have the votes. Republicans can use a motion to recommit to add the tax cuts on the high-income earners into any vote, and my guess would be they would get anywhere from 60-70 Democrats joining them.
You can appeal to the President all you want to talk tough on this issue, and certainly he could be doing a better job than at present. And I agree with James Kwak that the President could clear all this up by saying “I don’t care what bill you send me, I won’t sign it.” But that’s not in the offing. The President wants those middle class tax cuts, no matter how ineffective they have the potential to be, while blowing a hole in the long-term budget picture. It’s a tough call for me, but I ultimately come down on extending the middle-class tax cuts for a limited period in the near term to make up for the lack of wage growth.
Still and all, the problem is in the House, and with substantial numbers of the House Democratic rank-and-file, who really believe in tax cuts as a solution to our economic problems. They’re completely wrong about that, but they certainly believe it and will vote their convictions, even though the stance isn’t popular. You’ll notice that the only Democrats making bargains, like using the money for the high-end tax cuts on a business tax cut, or increasing the brackets to $500,000 or $1 million a year, are Senators. The House does not appear to have the votes, and the Republicans have a mechanism to show that.
All that being said, I support the Progressive Caucus action. We deserve to see precisely which ConservaDems think that maintaining the tax rates from the last 10 years, a time of the worst wage and employment growth in postwar history, represents good economic sense. At least the leadership would then be seen as putting up a fight. I agree that you can sometimes win by losing by standing on principle and using that as the basis to make your case.
But that doesn’t seem to be the plan, unless Pelosi pulls a rabbit out of her hat.




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I suggest we just let them all run out.
We are making too much of the middle class tax cuts.
Let’s look at two cases, one is basically me and the other is basically my adult son.
Me: My gross taxable income after my deductions and contributions to my 401(K) has been about $43,000. I get paid every two weeks. I have calculated what happens to my income if the tax cuts run out. My paycheck every two weeks after taxes would be $26.50 less. That’s less then I spend on going out to eat or going to the movies. I could easily handle that.
My son: My son works full time at low pay. For this exercise let’s assume it’s $9.50 an hour. That means he earns in a year, with two weeks off without pay for vacation, $19,000. After all his deductions his taxable income is still over $8,350. For him there is no difference in his rate for his pay above $8,350 but his rate below that goes up by 5%. That comes to $16.00 more withheld from his paycheck every two weeks. That’s less than he spends going out to a club, which he does about three nights a week, being one of those twenty-something young people who is a musician.
So for my son, a low wage earner, and me, a low income professional, the amount we pay in increased taxes is a sacrifice, but a small, manageable one.
What is the result of all the tax cuts running out? $4,000,000,000 in revenue increases, 4 Trillion dollars, over the next decade.
These are the tax rates that we had in the Clinton era when the economy boomed.
In Congress we have the following:
1. the Progressive Caucus
2. the Congressional Black Caucus
3. the Hispanic Congressional Caucus
Now, “what’s missing” here?
Consider the Democratic Women’s Caucus. These four critical elements and which comprises the “base” of the Democratic Party, and yet, Women, are not effectively represented in Congress.
And my being from Arizona, one needs only see and understand the stellar political trajectory that is found in her history for Secretary Janet Napolitano at Homeland Security. And how did she achieve her success?
Napolitano understood and exmplified the Democratic “reach out” to Republican women, and is pivotal to her success. And this too can be found in the last week’s success on medicinal marijuana.
Consequently, it amazes me that Democratic leadership and candidates for Congress, cannot bring themselves to address the “issues” important to women on the political right. And calling this lack of a perceptive behavior is worse than being “dumb”.
Jaango
Now that’s an argument I can agree on. Either everyone gets a hike or no one gets a hike.
I agree. And I think people who are hoping to ride Obama’s coattails to a victory in 2012 by selling out on taxes and pandering to the so called middleclass (<250K) are fooling themselves. The rich will take these cuts and will press for every cent this Deficit Commission wants to give them too.
Don't you guys get it yet. Rich people are doing great in this economy and they despise us.
It’s hard to believe these people are so dim-witted that they can’t understand that making the Repugs publicly OWN tax cuts for the super-rich is a good strategy.
On second thought, no one ever went broke by underestimating the intelligence of members of Congress.
The US desperately needs an economic class war to avoid a fratricidal chaotic war.
Writing another letter? How about throwing down a verbal gauntlet and following thru with the pledge? “Congressional Progressive Caucus” my arse!
Get out of the country or buy gold and hide it. Get a safe haven. A tax cut is madness.
I think it’s a mistake not to pressure Obama to threaten to veto, and then actually veto, any bill that gives the richest 2% a $40 billion gift (one year) up to a $700 billion gift (ten years).
Why is this not the correct “ask” for liberals? The President has the veto; this is what it’s for. Demand that he use it in the public interest, even at the risk he gets overridden. This should be his litmus test.
I agree that I would not notice the difference if the middle class tax deduction was allowed to expire. But taken together thay add up and would be, in effect, an anti-stimulus – the last thing the economy needs.
I know for a fact that o will do the right thing. He’ll screw the little people and give the r what they want in the name can’t we all get along. As the link below pointed out, they don’t get it or they are really rs and are taking us down with them.
I always saw DADT as his litmus test. With popular support for repeal (not to mention it being the only RIGHT thing to do), and no financial impact one way or the other to the public (but savings in the defense department), you’d think it would be a no brainer, right?
He’s a failure to the Nth degree. He’ll fail here, too.
I agree that letting all the tax cuts run out is one solution that works for me. IF we have to do that to force billionaires to pay more like their “fair share,” so be it. The tax increase for most of us peons won’t be that hard to bear, but our nation/society will do better with the tax increase on zillionaires. frankly, the super wealthy can afford this the most. The way these pols act, you would think we’re talking about ripping a pound of flesh out of their behinds. Spare me. So stupid on so many levels, and yet the country will do better collecting the taxes from the super wealthy.
I have no expectation, though, that these bought off politicians will do anything but feather their own nests. And by politiicans, I include them ALL, not just Obama.
I agree.
Another way to look at it, those reporting adjusted gross income of more than $250,000 to the IRS are projected to make up 2 percent of households.
If we only raise the rates on them, then Bush was 98% correct.
How much do the various cuts change revenue?
Maybe the cut off should be at the current 25% bracket ($28,400 – $68,800 for a single filer). Let the current 28% bracket ($68,800 – $143,500) go back to 30%, current 33% bracket ($143,500 – $311,950) back to 35% and current 35% back to 38.6%.
The last of these brings in $700B over 10 years.
I suspect that letting the two upper middle income brackets revert would have a similar effect on revenues.
A $1,000,000 – $5,000,000 bracket at 43% and a $5,000,000 + bracket at 50% would also be helpful.
Progressive Caucus Stands Up. Welcome aboard a movement. Important that they are a voice to be heard. Me I like it. I know I suckered for BO. G)
When the next wave of cuts hit the State, County and city governments they will be after pension money as they have already. The shit has not hit the fan yet. They have been kicking the can down the road. Bush tax cuts equal job cuts. Jobs are the hope of the unemployed (an oxymoron but they still don’t get it)
Obama, New Dems, Blue Dogs and Republicans prefer cutting Federal Income Taxes for the Rich while raising the Retirement Age and cutting Social Security Benefits.
It is a formula that is 180 degrees contrary to economic stimulus.
The House is not the problem, at least for the next 45 days. The problem, as always, will lie with Harry Reid.
But it does make the US much more like Mexico.
The Congressional Progressive Caucus has no credibility.
They caved on healthcare. I expect they will ultimately cave on Social Security. Presumably, they will cave on taxing the obscenely wealthy as well. It’s how the Caucus operates.
I agree with that! Let them ALL run out. This should avoid the “necessity”
for cuts to SS,Medicare,allow unemployment insurance to be extended,etc
We sent them a pretty strong message in these midterms, though. The progressive caucus actually grew while BlueDogs and other fucktards lost obscenely. Maybe they’ve finally gotten the point?
I agree with you. Just let them both expire if the republicans insist on tax cuts for the rich. This wld be a perfect opportunity for Obama to draw the line and bring attention to the difference btwn dems and repubs but I guess there has to be a difference to draw attention to. I predict he will back down and extend tax cuts for all for the next two years and since he will be a one termer extending them after that wont matter to him.
The taxcuts are bullshit anyway, as far as fiscal impact for the taxpayers. A payroll tax holiday for those making less than 80k, say, would be the way to go if Obummer actually cares about the middle class.
put another way
Couple of points.
First. Message. Combatting the republican corporate myth-conventional widsom of tax cuts spurs economic growth/jobs. Answer. Take a look at the past lost decade,… lost jobs, stagnant and decreasing wages for most Americans, widening income inequality. Come to think of it during the 90′s we had tremendous job growth and wage increases that all occurred with tax rates that we would be reverting to.
Second. If I’m not mistaken everyone will get a tax cut even if it with the Obama’s proposal, but only up to the first 250,000 of income…so this is bogus that the poor super filthy rich won’t be getting a tax break and need one.
Third. You want shared sacrifice, here it is Mr. President. I emal amd willing to sacrifice my tax cut/break but only if those making more than 250,000 are to selfish to sacrifice their tax break on money over that initial 250,000. If not then the deals off. No tax cuts for anyone. No one gets it any break. Either we all get it on income up to 250,000 or no one does.
A study by the Joint Tax Committee, calculate that the government will lose $700 billion in revenue if the tax cuts for the top income brackets are extended. And that sounds bad. But they also conclude that the Bush tax cuts on the middle class will cost the Treasury $3 TRILLION over the same period. If we can’t afford $700 billion, then how on earth can we afford $3 trillion? Increase taxes on everyone or no one. And if it is no one, then cut entitlement spending by 15% today. Hey, let’s cut entitlements by 15% anyway.
Or instead of that, cut the Big Ticket Cold War relic weapons systems that are unnecessary since our weapons are already technologically superior to the rest of the world.
And close the overseas military installations that are also WWII and Cold War relics
Close the tax loopholes that allow the most profitable industries on Earth to be subsidized
And raise the tax rates BACK to the Eisenhower era levels – you know, the ’50s when we were actually prosperous
I agree with all of your arguments except the tax rates.
Good call!!
Why not the ’50s era tax rates? Weren’t those the times of prosperity that everyone wants to return to?
Or do you think it’s a great thing to keep rewarding corporate managers and banksters by giving them untaxed “golden parachutes” for destroying companies and the global economy?
Just think Obama can run on cutting the Bush tax cuts for the rich again in 2012 (if anyone will believe him).
OK, here’s what you do about the catfood commission. Simpson lives in Wyoming and Bowles lives in North Carolina.
Call, email, write to the Chamber of commerce in both Wyoming and North Carolina. Tell the person in charge you refuse to travel to their state or to buy any product or service that comes from their state until Simpson and Bowles gets rid of all social security changes from the catfood commission and then disbands the catfood commission.
We the people of the United States of America form this Liberal Democratic Party of the United States of America for the promotion of a progressive agenda for America.
We generally support the progressive and liberal candidates that run in the regular Democratic party. We do not run candidates. We do not handle money. Our power comes from the unionization of our party members who tell GOP contributors and other regressive contributors that either you get the House and Senate and the President to enact our party platform at the present point into law or you lose our business as consumers. By doing this we avoid petitioning a corporate corrupted congress and go to the source of corruption and pressure them for the legislation under threat of massive boycotts.
Party members will send the party agenda by email to these GOP and regressive contributors.
Imagine it and it will happen.
The Republican party appears weak and vulnerable at the cash registers of those companies that give money to them.
To join us go here http://www.democratz.org and send some emails and get others to go there. If you like this message then Join us.
But tax cuts are very inefficient ways to stimulate the economy.
I say let the tax cuts run out but SPEND the money coming in on building infrastructure.
So obviously the right thing to do. Therefore, it’ll never happen. Sadly.