In a Rose Garden statement today, President Obama will kick off the returning debate over the Bush tax cuts, as he will call for a one-year extension of the tax cuts up to $250,000 of income.
House Republicans plan to vote this month to extend for a year all of the Bush tax cuts, for middle- and upper-income people.
The president’s proposal could also put him at odds with Democratic leaders like Representative Nancy Pelosi of California and Senator Charles E. Schumer of New York, who have advocated extending the cuts for everyone who earns up to $1 million. And it will most likely do little to break the deadlock in Washington over how to deal with fiscal deficits, an impasse that has only hardened as Republicans sense a chance to make gains in Congress this fall.
But by calling for an extension for just a year, Mr. Obama hopes to make Republicans look obstructionist and unreasonable. Trying to bounce back from another weak jobs report on Friday, he also hopes to deepen the contrast with his challenger, Mitt Romney. On Friday, the president said Mr. Romney would “give $5 trillion of new tax cuts on top of the Bush tax cuts, most of them going to the wealthiest Americans.”
The timing and the level are interesting. I believe that in the past, the President has wanted to keep the tax cuts under $250,000 permanent, rather than a one-year extension. Perhaps this is a signal that those tax cuts, which flow to millionaires as well, considering our marginal tax system, aren’t all that well-designed either. Or perhaps it indicates that an overhaul of the entire tax code is sought. This is the thinking of Republicans on this, as they only want to extend all the tax cuts for a year, paving the way for tax reform in 2013.
And then there’s the $250,000 level. As mentioned above, Nancy Pelosi led the way in changing the dividing line to $1 million. But the President will stick to his original plan of $250,000. Now we’ll have to endure a spate of stories where people go back to Pelosi and ask her whether $250,000 is OK, or whether that will hit the “middle class.” It’s a needless argument but one necessitated by Pelosi shifting the goalposts.
Administration officials called the dividing line a strategic shift rather than a matter of policy, which is what Pelosi has said as well. But where does that end? If the goal is to paint Republicans as unreasonable by showing they won’t let tax cuts expire even at a really high number, then reinforcing that will just move the number up and up.
Perhaps the more important story were the remarks from Obama campaign advisor Robert Gibbs yesterday, where he pronounced the President “100% committed” to letting the tax cuts expire above $250,000. Given Republican unwillingness to split the tax cuts, that can only mean one thing – a full expiration of all the tax cuts.
Republicans reacted to this gambit by playing their familiar card about “uncertainty,” apparently unaware that they will vote to extend all the tax cuts for only one year as well. There’s no difference in certainty between the two proposals, whether yoked to a “promise” for tax reform or not.
It’s worth pointing out that Republicans don’t believe that the President will hold firm on taxes, and with good reason:
Rep. Kevin Brady (R-Texas) predicted Monday that President Obama would eventually “cave” on his proposal to extend the George W. Bush-era tax cuts just for those making less than $250,000 per year.
“At the end of the day, I think the president’s going to understand he’s in a really bad economic position,” Brady said on CNN’s “Starting Point.” “And he will cave and we will not see the tax increases that he hopes for.”
This was the 2010 playbook, and Republicans will play it again, expecting victory. It’s the President who has something to prove here.




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Uh. This might seem like a dumb question, but how many times does Obama have to extend the “Bush” tax cuts before the become the Obama tax cuts?
Just out of curiosity here. I’m trying to get a read on just how big of hypocrites Democrats are.
Sounds like a card-carrying firebagger.
And once again this sellout proves Bill Clinton’s inundation of triangulation was a mere warm-up act.
This doesn’t sound like our Negotiator in Chief. Surely he has something big to offer up to the fascists in exchange for their scorn.
I just read a news story that only half of those who have graduated from college since 2006 have full-time jobs.
Obama ignored the liberal economists, failed to do what needed to be done, and now he will pay the price in November (and then be rewarded by the plutocrats starting next year with millions of dollars in gratuities called “speaking fees”). Well, it’s time for me to start my own work week. Cheers!
Perhaps what this really indicates is that Obama is in campaign mode.
It’s a needless argument but one necessitated by Pelosi shifting the goalposts.
Pelosi didn’t shift the goalposts. Pelosi, a consummate Democratic pol, came out and publicly set the table for the President in exactly the way the White House wanted it set. You know it as well as I.
This is O’s opening gambit before he extends the full tax cuts for 10 years.
NOTE: That figure comes from a Rutgers survey completed in early May and does not include 2012 college graduates.
Ooops. Sorry, I had to extend the tax cuts for the wealthy to get this one year deal for the peons.
“It’s the president who has something to prove here.”
I don’t think he can prove much by TALKING about this little economic bone to throw out the back door of the White House for the 99% dogs. This is all campaign-kabuki of trying to incrementally ooze to the left. We could call it:
“The election-year jellyfish olympics.”
I doubt it’s going anywhere meaningful, and I also think that too many progressives (not to mention a lot of Independents) are looking at Obama’s track record of rehabilitating the GOP after both groups helped him beat them senseless in 2008, to get fired up about it.
Another stellar decision that makes me want to run to the polls to vote for O./s
Can’t push that Grand Bargain if the government collects enough money from the rich to pay for ssmm.
“…and the republicans will play it again, expecting victory.”
Why shouldn’t they expect victory? Would anyone like to point to Obama-the-Brave telling them to go shit in their hats while he pushed hard for real change, using the huge mandate and the congressional numbers that he came in with, to get it?
Given the opportunity that he had to start a real salvage operation, this election-year incremental posturing is black-humor hilarious, especially considering that he’s not going to take back the House, and may well lose the Senate, even if he squeaks through against an opponent whose personal and political liabilities make George Bush look like a statesman.
I suspect that the intelligent republicans are chortling and slapping fives as they golf:
“Hells bells, guys; we got the case ace and locks on the board! Two guys running and we own both of them.
On to November!”
You’re right, of course. It would be be best to let them all expire rather than “negotiating” with the GOP.
It’s so frustrating that Pelosi balked Obama’s courageous intentions when she stuffed the bill from those good progressives in the House that would have stripped the health-insurance robber barons of their exemption from the anti-trust laws.
What a stab in the back!
:o)
Gee, Barry, how did that negotiating thing work out for you last time?
A segment of the population have been crying about The Tax Cuts For The Rich for 10 years. To say that we can now split the tax cuts into “above” and “below” $250,000 suggests that those people have been liars.
There should be no split, eliminate the entire Tax Cuts For The Rich.
ONLY extended for a mere ten years? I think the intention is to extend them to infinity, unless, you know, they can totally wipe out the need for the 1% to pay ANY taxes ever again.
That’s my prediction…
Quite agree. Eliminate totally for everyone. Tired of this bullshit tap dance around the Obama tax cuts.
While I agree with your conclusion, calling people liars is pretty ridiculous.
That being said – let them all expire. If tax cuts for the middle- and lower-class are really necessary that can be dealt with in January.
Time for another round of Barack Obama buys a lawnmower.
Ok, not liars, exaggerators for political partisan gain.
Here come Permanent Tax Cuts by Oilbomber.
Oilbomber believes that Tax Cuts Help Job Creators to Create Jobs (Reaganomics, trickledown).
Oilbomber says that The Federal Governement cannot create jobs (O fired much of the existing – typical – Federal Workforce!).
Oilbomber forgot that FDR created atypical federal jobs with the WCA.
Do you really think that Oilbomber is gonna get the 250 tax cut and forego the millionaires and billionaires after giving them immununity from prosecution, tax cuts, subsidies, zero interest loans, paid them interest on T Bills with the free money he gave them? (Additionally, O never stopped the Financial Gaming they love).
Obama, Pelosi, Reid have teed up the Ball for Drunken Boener.
Boener: Now, watch this drive!
This time is different! He won’t cave…….. I think
This is off topic, but your mention of firebagger made me think of this again, which I posted at the end of the Bill Press book salon:
Arthur Goldwag on his experience at FDL
Oy!
I agree with that, but zero won’t allow it. This,is just a dance before he extends all of them first, gotta make it look good.
I really hate this shit. We all know what happens in the end.
Guy even said we have to do this to pay down the deficit. Man he is just ignorant.
Why won’t Obama simply push for letting the tax cuts expire, and then press for tax cuts for the middle class? (Can a GOPer ever oppose a tax cut?) Maybe even push for a more progressive marginal rate.
But it looks like Obama wants to do some ‘bipartisan’ negotiating instead, with a different end-game in mind of course.
Aurthur Goldwag has the ability to accurately recount the experience but not to learn from the experience. We are sick of BOTH CORRUPT PARTIES!
https://arthurgoldwag.wordpress.com/2012/07/08/obamas-faltering-base/#comments
The rich will keep their tax cuts and Hoyer and Pelosi will compromise by raising the retirement age for S.S. and the Medicare eligibility age to pay for the elite tax cut “expense.”
Yes, that is the plan.
They’ve already said so.
All the Democrats have to do is simply do nothing for there to be the return of Clinton-era taxation, which the Democrats could have done last time as well.
“But the President will stick to his original plan of $250,000 …”
No, he won’t.
Having shown no evidence of backbone for four years, there is no reason to expect it to appear now.
Yes, they could and emotionally that is what I would like to see. At least let them expire and let the new congress enact what they want. The problem is, of course, that unless they keep taxes low (esp middle class) or spend the equivalent, we will surely see another recession. Now they are also traapped in those ridiculous automatic spending cuts which makes it even more serious. So do you think our government knows what they are doing?
If I were a betting man….
I watched that unfold. I was amused.
And I would love to see Obama notice that his left flank is hemorrhaging.
He’s a card carrying fascist himself and a member of the 1%. It’s beyond amazing that you haven’t grasped this yet. Why do you think he keeps instituting policies that favor the aristocracy? It’s because he’s a member thereof, even if he denies it in his rhetoric.
Obama is so far right he doesn’t even possess a left flank. It’s a carefully constructed illusion that would make his idol Ronnie Reagan proud.
That’s quite an ironic statement. I’ve followed these threads regularly and the number of times I’ve seen BS artists from THE RIGHT SIDE OF THE ARGUMENT insist that over half the population doesn’t pay any taxes would suggest that folks like yourself are looking to score political points when you make statements like this.
Gotta love disingenuous people though.
“So do you think our government knows what they are doing?”
Yes, I believe both Democrats and Republicans want to Starve the Beast, just Democrats are less open about it. It was the Democrats who brought us the Catfood Commission, not the Republicans.
Bullshit, bullshit, bullshit.
Another lying lie from the world’s greatest living liar.
Apt description. Well done.
Ironic since the guests accused commenters of being conspiracy theorists and were then presented with sources that proved the “conspiracy”. Of course that was not acknowledged.
Heh, the group he’s calling liars would have to include the brigade from the right which has been braying routinely that poor people don’t pay taxes, despite the fact that payroll taxes have funded quite a bit of our infrastructure.
It’s pretty pathetic that someone who makes above the median would begrudge a Burger King worker the extra $4 in his paycheck to score political points particularly while aware of the “debate” in Washington has been to increase the age and decrease the benefits.
Awesome! I guess there was no doubt that our message got through. (Not that anything will happen as a result, but at least we sent the message.) Poor Athur sounded positively astounded.
The only reason Arthur is horrified by the GOP is that with an R president in power Arthur and many of his buddies will not have access, not have cushy jobs, not get the best invitations, etc. It’s purely about what benefits him, and nothing more.
Great link – - the Dems have left their base at the train station. The big O assumes that the left will hold their nose and vote for him – - he is out of touch and sadly mistaken – - one option could be Jill Stien or Gary Johnson. Look for third party folks when you look at your choices.
The big O talked about tax cuts today – - let them ALL expire!! Perhaps Firebaggers should be batteling Dems that have left us in the middle class – - -
You need to be careful of your wording. I believe the correct statement is “just under” half the population doesn’t pay any “federal income” taxes.
But you make a good point. Persons looking to score political points would be the type to call a thing Tax Cuts For The Rich one day, and the next day without admitting it, establish a number of $250,000 as the non-rich portion (which amounts to 75% of the tax cut).
You guys have NO IDEA how much self-restraint I had to exercise in composing my comments on that Book Salon! Bit my tongue so many times I can hardly eat!
Can you imagine what it would have been like if Jane had not lowered the boom on us a week earlier?
BTH – Headline on HuffPo says that Obama’s re-election campaign was outraised by $35 mil in June alone. Poor stupid Barry thought that the plutocracy would reward him for his duplicity. Moron.
Big O and the rest of the Dems just don’t get it – - and because of that they are not getting $$$$ – - – they got my money last time around – should have given more to the homeless shelters and none to the corporate jerks that call themselves Dems – the Dems base is now made of sand and it is running through the hour glass and has been for the past 30 years.
Yes, I was correct about your loose re-quoting. Payroll taxes are indeed pay by all.
I’m not sure how you think payroll taxes have funded quite a bit of our infrastructure though. Payroll taxes (not federal income tax) pay for SS and Medicare. I don’t know of any federal payroll enfrastructure tax.
The argument you are making is pretty disingenuous since you know darn well that the tax cuts in discussion include PAYROLL TAX REDUCTIONS.
And yes the CBO actually has stated that the middle class reductions are about 80% of the cuts.
They also stated that the best way to stimulate the economy would be more aid for the unemployed and reduced payroll taxes(both employer and employee).
and their actual statement on the cuts itself
“Of all the tax cut scenarios lawmakers are considering, Elmendorf said, a permanent extension for everyone or a permanent extension for everyone except high-income households would be the most effective in the next two years.”
So it isn’t “playing politics” to suggest that the 20% at the very top forgo their tax breaks, it’s what the Budget Office has suggested would net the best outcome for the economy of the whole country.
That idea will really jump start job growth! What political consultant thought that one up!? Just in termas of making politcal hay this idea is tepid. I guess O thinks he is going cake walk back into the White house. I know the Mittman sucks but come on O! Maybe think of ideas that would put people to work instead of trying to make the GOP look bad as they already look bad!
They’ve been looting the “surplus” to pay for war and tons of other things. It’s one of the reasons we’re now discussing raising the retirement age and lowering the benefits.
I’m fairly confident I’ve posted this before in our previous discussions.
http://ampedstatus.org/how-your-social-security-money-was-stolen-where-did-the-2-5-trillion-surplus-go/
Google “tax cuts for the rich” gets over 4 million hits. But now we find out, they’re not just for the rich any more.
Read the link. It appears that Goldwag is even more ensconced in an “echo chamber” than those he accuses of being so. The comments of his fellow rationalosers for Obama are blind enough to credit O for actions that weren’t the result of his policies (Iraq withdrawal), while expressing their “belief” that he will regulate the corporations that are bleeding us dry and destroying the environment, if only he’s given a second term.
X2.
Thanks for the link. It’s pretty long, and I don’t have time to plow through it now, but I get the point. The $2.5T is “on the books”, but not stacked on pallets in the SSA basement.
But you probably don’t believe you’re stealing from the credit card company when you swipe your card. You get a slurpy and a tank of gas and the credit card company get’s a promise that you’ll pay them back. Same with the SS Trust Fund and Congress.
I’m not googling a single thing. There were quite a few articles on payroll tax cuts here(many of them negative due to the effect it would have on Social Security long term). You have already acknowledged that everyone pays them so continuing this route only makes you look like a partisan hack.
Couldn’t bring myself to access that Book Salon because my comments would have resulted in my being banned from FDL. You’ve obviously got a stronger stomach and better control than I do.
I don’t own a credit card. If I did though, I wouldn’t be stealing from them considering they extract a hefty fee on the merchant whenever a card is swiped.
You might want to actually READ that article. The Supreme Court has already ruled that technically there is no contractual obligation for the government to pay back any Social Security funds. They can make changes whenever they want to it.
The big problem is the cap on payroll taxes, which i think is under $110K, when it shouldn’t be capped at all.
Yes they can. And they can also be eaten.
O can’t run on his record, so he has to vilify Mittens and hope the public will be fooled again.
I won’t disagree with this one. Congress can change the law whenever they want, and have many dozens of times since SS was enacted.
It’s pretty freakin pathetic when Mitt Romney’s millions were taxed at a mere 1% more than a kid making under $20,000.
We need to get rid of the cap and it’s time “investment income” gets a tax.
Romney shouldn’t be able to reap millions off of the labor(and often exploitation) of others with less tax consequences then the guy who toils for his millions.
The big share of payroll tax (SS) has a cap, the Medicare share doesn’t.
Not only should the cap be lifted, which would be a little fix, but the rate 6.2% (4.2% thanks to the Obama reduction) should be raised too. It’s gone up 20 times from 1937 to 1990, and not a tenth of a percent since 1990.
Then don’t bother telling me how the people who have paid in are going to get their money back or pretending that the working poor haven’t made generous contributions to this country’s upkeep. Whether or not someone paid a “federal” tax is irrelevant when it comes to whether or not someone is contributing to the costs of this country.
Mittens has done a pretty good job of villifying himself.
His financials make him look like a parasite.
I say this as someone who has no intention of casting a vote for either major party candidate.
But isn’t exploitation the centerpiece of free market capitalism? I think you are advocating “progressive” taxation. You should know better than to even mention that word. Now, you’ve made yourself a drone target.
a) it’s not really a bother and
b) your restatement in #71 needn’t be argued with. People who don’t pay federal income tax do contribute.
BTW,
It’s not just the poor.
It turns out over 100,000 US citizens make more than $200k and pay no Federal Income Tax.
• http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=3056&DocTypeID=1
“O can’t run on his record, so he has to vilify Mittens and hope the public will be fooled again.”
Just so.
He could save time and bucks by shrinking his speeches and the attendant campaign signs to:
“I suck less!”
Doesn’t Tony Blair still think that the invasion of Iraq was a big success? All worthwhile. I guess as long as it worked out well for him, that means it was a big success.
same approach with Obama, and all of these a$$hole$
These people really do live in a dream world.
Even Adam Smith wasn’t dumb enough to believe that the markets should be free.
My husband tells me routinely that my views probably have me on some terrorist watch list. *shrugs shoulders*
What we have isn’t capitalism which is “supposed to be win-win” and a fair exchange of goods and services. Today we’re closer to a mercantilism style of economy where there are winners and losers. It’s almost like we have a lottery. If you have right name then you can screw up a company, break the law, and screw over an economy and still be entitled to millions in compensation or you can go to school, work for years and years at not one but two jobs , have a family member contract a long, painful debilitating disease and literally have to hold bake sales to cover medical costs. It’s a heck of a system we have.
I’m totally not going to sit quietly while the rich rape and pillage this country and others as well as screw over everyone who can’t afford to be global players.