The proposed 5.6% surtax on millionaires, essentially the creation of a new tax bracket at the $1,000,000 income level, would raise enough money to pay for the American Jobs Act, according to the Congressional Budget Office. That pay-for will be used when the Senate attempts to pass a cloture vote this week on the bill.
The Congressional Budget Office said Friday the Senate Democrats’ proposed surtax on millionaires would raise $452.7 billion over 10 years, more than enough to pay for the $447 billion in spending and tax cuts included in President Barack Obama’s jobs bill.
In a letter to Senate Majority Leader Harry Reid, the CBO estimated the net deficit reduction would be $6 billion, a modest impact but still added ammunition for the Nevada Democrat in trying to unite his caucus going into floor votes next week.
The fact that Republicans will unite against such a measure and have the votes to stop even consideration of it hasn’t stopped business groups from warming up their lobby machine to “stop” the surtax. The U.S. Chamber of Commerce, the National Association of Manufacturers and the National Federation of Independent Business, among other groups, have started the hilariously named “Tax Relief Coalition” to oppose the surtax.
At the grassroots level, a bunch of struggling Americans who cannot bear to reason out why they’re struggling and who take it on as their personal responsibility have started a mean-spirited website called “We Are the 53%,” based on the fallacy that 47% of American “parasites” don’t pay taxes. The 4% figure, however, doesn’t include sales taxes, excise taxes, gas taxes, or anything else but the federal tax code, but no matter. This bit of misdirection is designed to obfuscate about our tax code and blame the general misery of the economy on poor people who haven’t pulled themselves up by their bootstraps.
Here on Planet Earth, the concerns of the 99% movement are broadly defined as: student loan debt, troubles with children, medical catastrophe and unemployment. So the failures of our health care and education system, as well as our impotent response to the financial crisis and the Great Recession, are the sources of most of the troubles of this class.
Upon reflection, it is very obvious where the problems are. There’s no universal health care to handle the randomness of poor health. There’s no free higher education to allow people to develop their skills outside the logic and relations of indentured servitude. Our bankruptcy code has been rewritten by the top 1% when instead, it needs to be a defense against their need to shove inequality-driven debt at populations. And finally, there’s no basic income guaranteed to each citizen to keep poverty and poor circumstances at bay.
We have piecemeal, leaky versions of each of these in our current liberal social safety net. Having collated all these responses, I think completing these projects should be the ultimate goal of the 99%.
We know how to fix all that. And while a millionaire’s surtax wouldn’t seem to fit into the equation, the political economy of the 1% dictates that reducing their power and influence is a gateway to the rest of the policies being enacted. While there are concerns about defining the conception of rich upward, having additional tax brackets (and you don’t have to stop at $1 million) makes a good deal of sense as a way to attack the inequality issue, of which a lot of these other issues are but a symptom. It’s being used as a talking point for the next election, but it’s about as good a talking point as any other.
Related: an interview with the creators of the We Are the 99% Tumblr.




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The 53%’ers are no worse than the 99%’ers who claim to include everyone who isn’t a millionaire.
Not all of us are crying about student loan debt, car payments, or not being able to afford the good things in life because no one will hire a person with a degree in Babylonian Sculpture. Some of us live within our means, actually read the contractual fine print, and took time to research whether “Haiku” was a good idea as a choice for our college major.
No offense but where were all the marches and occupations when things were rolling along not too long ago, when $400k house loans could be gotten on a fast-food wage with no money down.
you really don’t understand the term “predatory” do you?
OK, let’s say I took out that irresponsible loan. Explain to me why it makes good economic sense to slice up my loan and sell it to other people without worry about whether my debt is collectible or not.
… and SO IT SHOULD.
Especially considering:
* record corporate profits
* growth of millionaire’s class
* disparity of wealth
* 30 years of evolving tax breaks and loopholes
* lack of re-investment in America by wealthy individuals/corporations
* broken promises of re-investment for past bailouts and tax breaks
It’s about time.
Time to pay the 99%ers what they are owed.
You are only one seious illness or one job loss away from poverty. Do NOT mock the fates, or they will show you how wrong you are.
And I would not wish that on you.
BTW, there are plenty of people with law degress from top tier schools and presitgious clekships who are looking for jobs after their offers were suddenly pulled by white shoe firms who locked them up after their 2nd year summer associate programs.
They didn’t major in Haiku, they did everything right, they read the fine print and played by the rules
How about we ding all actual millionaires, not just the multi-millionaires who ‘earn’ that much each year?
So, you firebaggers think that $1,000,000.00 is a lot, do you? Being “rich” is expensive.
Do you have any idea how much the prix fixe at Per Se costs?
And that doesn’t even include the matching flight of wines.
I’m sorry but O’s proposal is a joke. We have huge unemployment and rigged capitalism that is draining our economy. We need balanced and fair trade. We need to mandate capital requirements for banks, we need to tax the wealthy where they make their money (investments) and not where they do not (income)
I can’t WAIT to hear what the “Axis of Evil”, Boehner, Cantor and McConnell think of this.
This IS what Boehner was waiting on before he “decided” on whether to support this. Isn’t it???
Alright, so the internship didn’t pan out to a full time job, life goes on and you go on with it. There is no guarantee that there will be a job for you in your chosen field, there never was, so why the angst that the nation has become an evil place?
Does this so called “jobs” bill and surtax actaully happen in the near future. Seems like everything O and this congress does doesnt take effect until 2013. They love love love 2013.
Eh, I’ve seen the tales of woe from the “99%” websites, some are legitimate while others are laughable:
“I have $150,000 in student loans that I can’t afford and my English Lit degree is basically worthless.”
I have no sympathy for someone who took out $100k in loans for a degree that is only useful if you can get a professorship somewhere to teach English Lit to other people.
Bankers have a fiduciary duty to their money to ensure that the borrower can repay the loan.
Predatory loans, one borrowers cannot repay, breach that fiduciary duty. In other words, the bankers betrayed the money.
Got it?
Erick Erickson, who runs Red State has the first post at that site, we are the 53% percent.
What a piece of work.. leading the sheep.
Rafe clearly thinks it’s okay to donate his FICA taxes to the Banks aka the shadow government.
They need another bonus, and probably another bailout within the year.
We’res our pecora commission?
I prefer to call them the “Axis of Assholes”.