Let All Bush Tax Cuts Lapse

[Freeper]

babylonsister (140,078 posts)

 
Let All Bush Tax Cuts Lapse

Last edited Mon Jul 2, 2012, 06:31 PM USA/ET - Edit history (1)

http://www.boomantribune.com/story/2012/7/2/105538/3112

Let All Bush Tax Cuts Lapse

by BooMan
Mon Jul 2nd, 2012 at 10:55:38 AM EST


I am encouraged to see signs that prominent Democrats are openly contemplating letting all of Bush's tax cuts expire rather than cutting a deal with the Republicans during the lame duck session between November's election and the new Congress that will be seated in early January.

When we discuss the Bush tax cuts, we tend to focus only on the cuts for the rich because those have the most impact on the deficit and are the least sensible and most unnecessary. Focusing on the rich also enables us to have some small prayer of raising revenue in our current political environment. Yet, the Democrats cannot even unite on raising taxes on those making $250,000 a year.

It will be far easier to let all the Bush tax cuts lapse. This can be done easily. All Obama has to do is refuse to sign any deal or any short-term extension during the lame-duck. On the first of January 2013, the government would instantly get a $3.7 trillion boost on their books. This would free Congress up to redo the tax code in an more equitable way. In the worst case scenario, Romney would be in charge of this and would enjoy majorities in both houses. He might be able to use the budget reconciliation process to enact another Bush-like temporary (decade-long) tax cut, but it's unlikely that that would would work with the budget deficits we're facing. Bush had surpluses and still needed Dick Cheney to break the tie in the Senate for both his 2001 and 2003 tax cuts.

However, if, as now seems likely, Obama wins reelection, he will be in a great position to influence the new tax code. If Congress does nothing, everyone who pays taxes will see their taxes go up. Having won a second term, the president will have at least some initial political clout. And we've seen recently that the GOP will fold when put in a bad position, like letting student loan rates double or letting the payroll tax holiday run out.

snip//

Still, unless we want to travel on a constant Grover Norquist-fueled downward trajectory on federal revenues, Obama needs to take this opportunity to let all rates lapse. No one in Congress will have to do a thing. And that's probably the only way anything smart can get done in Washington DC these days.

http://www.democraticunderground.com/125151412

Wonderful idea, you guys have already driven up gas prices, insurance premiums, and unemployment, let's add on a 50% tax increase on lower income people. 

dtom67 (52 posts)
1. 'tis true...

this is the most important step in finally getting us out of the Bush economy.
long overdue as well

I wish we still had the Bush economy.

[I_B_Perky]

Well what are the dems waiting for? Since it such a good idea do it so they expire a month before the election!!! Write, email your favorite dem congress critter and have them do it!!

Do it now dummies!!!

[Freeper]

Well what are the dems waiting for? Since it such a good idea do it so they expire a month before the election!!! Write, email your favorite dem congress critter and have them do it!!

Do it now dummies!!!

Hell why wait till then, have 0bama sign an EO raising everyone's taxes now. Give everyone a few montsh to see how much smaller their paychecks are and by November Romney will be a shoe in. 

[Airwolf]

It really makes you wonder how they come up with such cunning plans. In reality they wouldn't know a cunning plan if it fell from the sky, hit them on the head and sang  "I'm a yankee doodle dandy".

[I_B_Perky]

Hell why wait till then, have 0bama sign an EO raising everyone's taxes now. Give everyone a few montsh to see how much smaller their paychecks are and by November Romney will be a shoe in. 

Whaddya wanna bet Freep thAT the dummies that have a job, those few, few, pitiful slaves of the corporate world, would be screaming bloody murder about how they can't make it cause their DAMNED TAXES WENT UP!!!!!

[Vagabond]

DUmmies accuse us of living in 1950s. 

Guess what DUmmies, as you like to say to us, the world has moved on.  The rest of the world isn't a bombed out shell.  A lot of other countries are competing with us, and guess what, they're tax rates are lower than ours and their tax regimes more sensical. 

Foreign companies are busy withdrawing all capital from the US right now.  Do you know why DUmmies?  Come on over and tell me if you know.  Here's a hint, I do know and won't appreciate it if you try BS.

[jukin]

I'm going to contact my moonbat congressman and suggest this very idea. She will actually think it is a good thinking.

[BlueStateSaint]

I'm going to contact my moonbat congressman and suggest this very idea. She will actually think it is a good thinking.

Tell them to make it a campaign issue.

[txradioguy]

Way to go DUmmies...brilliant idea...lets just trash what's left of our economy.

Morons.

[MrsSmith]

Obama has raised taxes on the poor over and over again, along with increasing energy costs and prices in general, which hit them the hardest.  It would be just like him to increase their tax rate also.   If the Bush tax cuts expire, the poorest workers will see their taxes increase by 50%.  Let those payroll taxes hit paychecks before November...

[Karin]

Response to babylonsister (Original post)
Mon Jul 2, 2012, 07:43 PM
Igel (16,302 posts)
6. Let's repeat 1937.

Let's cut spending.

Let's raise taxes. Again.

And let's increase reserve requirements. Again.

The only thing left is to restrict the flow of capital. Woo-hoo! A hefty round of protectionism for all.

If we do it right, we can stage another 1931. 

Thread killer.