Sunday, November 11, 2012

Opportunities to move forward on taxes

Although it is a minor part of the necessary progress needed to shore up our economy, raising taxes on the wealthy while preserving current rates for the remaining 98 - 99% is at least important symbolically. And, it looks like this will happen.

The reason is that the election has enabled Obama and the Democrats to box in the PTR (Party for The Rich, formerly the GOP). As Obama has put it:

"Now we need a majority in Congress to listen – and they should start by making sure taxes don’t go up on the 98% of Americans making under $250,000 a year starting January 1st. This is something we all agree on [my italics]. Even as we negotiate a broader deficit reduction package, Congress should extend middle-class tax cuts right now. It’s a step that would give millions of families and 97% of small businesses the peace of mind that will lead to new jobs and faster growth. There’s no reason to wait."

As he said, his pen is ready to sign the bill.

I can't see how the Republicans can hold out for helping million/billion-aires. True, these folks contributed mightily to the party and its PACs, but the money led to electoral losses, not gains. It may be safe to say that this "investment" by the rich in the PTR was a losing one, and that the PTR must be worrying that such large-scale financial help will not materialize so easily in future elections. So what motivation do they have for strapping themselves to this albatross again? I doubt that there are many in the middle class who really believe their tax rates should be bound with those who are much wealthier. The argument that we need big tax cuts for the already rich because they are the "job creators" didn't seem to gain much traction. And who could fail to notice that the "official" definition of "Small Business" applied to Donald Trump's  empire as well as to Bain Capital -- and who but the lame-brained could wonder about such a "definition"?

As people digest this more and more, I believe that they will turn up their noses at the PTR position of absolute support for preserving all the Bush Tax cuts. Nothing is certain, but if the President and his party stand firm and are willing to continue boxing in the Republicans on this issue, I predict that Obama will get his chance to use his pen on a bill to his liking.

1 comment:

  1. How about instead of raising taxes on people we instead figure out what we can do to create more millionaires amid billionaires?