Vote early and vote often is taking on a totally different meaning these days. Congress is voting on the tax cuts – they’re just not getting anywhere.
Today, the Senate voted twice on measures to extend tax cuts and failed to pass either version. One version would have extended the tax cuts to families making less than $250,000 (but not those over that threshold). The other version would have extended the cuts to families making less than $1 million. Democrats supported both measures but the GOP did not.
Senate Minority Leader Mitch McConnell (R-KY) said that he was “hopeful” that a resolution would be reached. His position, however, is unchanged: no compromise on tax cuts for all taxpayers.
Senate Dianne Feinstein (D-CA) disagreed that tax cuts were needed for all taxpayers, saying:
There are no signs that millionaires are suffering in this economy. It’s everybody below that. You have to stand up for what you believe and you have to vote on what you believe.
And so the votes continue.
(Editor’s note: If you’re poking around looking for a summary of the tax cut proposals, I’m still working on it… It’s been a busy week!)
@DiFi News flash: it takes capital to make goods and deliver services. Capital is accumulated by people and companies. High Taxes make it harder to build capital. Low capital = Low jobs
Low tax rates make cheating on taxes HARDER. High tax rates give greater rewards to CHEATERS and adds an incentive to game the system. Why do companies relocate their HQ to other countries? It is cheaper to move than stay. It is like the landlord that raises the rent, eventually it is cheaper to move than stay.
Seriously, Mr. Ganiere?
The Bush tax cuts do not affect the corporate tax rates. Additionally, corporations are accumulating wealth and capital at a horrendous rate over the last year as the recovery has taken hold. While politicians like to tell us this is because of “uncertainty” about taxes, it is more likely due to the instability in the world financial markets.
To beleive that millionaires and billionaires personal incomes play any part of the capital outlay in the companies that they own, operate, or control is simply another measure of politicians trying to dabble into economics. A millionaire who allows income to be taxed without reinvesting it at a zero rate, deserves to have it taxed at a higher rate.
Even if these cuts expire, it would be hard to consider the tax rates “high”. Millionaires are making more while the rest of us suffer; it’s way past time for them to give some back to the public who has filled their offshore tax free accounts with cash. Even with the low rates they have enjoyed over the past 10yrs, unemployment has increased and payrolls have shrunk. If low rates create so many jobs, where are they? Trickle down, supply side economics have failed us time and again; when are we going to realize this and move on?
Putting money into the hands of people who will spend it is the way to go. The wealthy will do what they always do: put it in the bank. This does not stimulate the economy nor create jobs.
It’s time to be realistic and realize that this is a key component in balancing the budget and starting to work on our national debt. The days for greed are gone.
The class warfare argument has already been stated by Brad. Class warfare is not the answer. Will some adults please enter the room? All the Bush tax cuts will be extended. It’s only a matter of time and for how long. Why not conclude this sooner rather than later. The country needs it’s problem resolved not feel good, pointless, self -serving votes to no where.
“The wealthy will do what they always do: put it in the bank. This does not stimulate the economy nor create jobs.” Why did they put the money in the bank? Most likely to pay the new higher taxes. What do banks do with the money? Loan it to people that have no intention or ability to repay? If you want to create a job you need more than just the salary held in reserve, you need computers, machines, office space, a storefront, money for the taxes and benefits, and a long term plan to make it sustainable. Just grabbing the money from one party to give it to ten parties is not sustainable. Eventually the one party will run out of money or decide to join the ten.
The best income tax is zero percent. It lets the poor save something and have a shot at wealth in the future for themselves or for their children.
Michael, the country’s financial problems are a direct result of class warfare. In the last dozen years the country has cut tax revenue while increasing spending for programs that were never paid for like the Afghanistan and Iraq wars, and Medicare Part D.
There is no legitimate reason to extend the tax cuts for the top 2%. Supply side, trickle down economics does not work. If tax cuts for millionaire “job creators” is necessary for the economic recovery to strengthen and deepen, then the best solution is to provide targeted tax incentives rather than tax cuts. For instance, generate $500,000 in new payroll and get a $50,000 tax credit. There is no guarantee that if the tax cuts are extended that they’ll be reinvested into the economy — yet that is exactly what we need in order to resolve our problems. Personally, I feel that extending the tax cuts for the rich is nothing more than a feel good Republican talking point.
I have been in complete agreement that the limit the Dem’s are proposing is crazy…200K for individuals and 250K for married. I’m married and not looking forward to paying more taxes because of that. But after reading this I’m now angry with the Republicans as well. $1M is a lot of money. I’ve been saying the limit for married folks should be 500K but 1M is even better. For those making over this amount, there should be no tax cuts. Politians are typical whether they are Republican or Dems. It’s a sad truth but sounds like egos are getting in the way of actually getting things done in Washington. Big surprise!
Would Harry Truman have done this? I understand that there always, in the end, has to be a compromise, and that liberals are never, ever going to get all that they want. That’s the nature of politics. The problem is that Obama is not pulling out all the stops to get the most progressive final deal possible. He’s not out there on the stump giving the Republicans heat for their unpopular positions. I think that both Carter and Clinton, moderates though they were on domestic policy, would have fought harder for, and achieved, a more progressive final settlement had they been faced with a situation like this.
The income tax rate in the USA was ZERO percent for more than 100 years. We went from one of the poorest countries to the only superpower. Should we let other countries with lower tax rates catch up? Presently we have the richest poor in the world. Poor people are routinely over weight, have cell phones, cars and cable TV. Our middle class are the envy of the world. Our super rich are on the same playing field with the super rich in other countries. Imagine eliminating the federal income tax… what would you do with the extra time and money? Remember the Clinton Budgets? We could fund our federal government at that level with a ZERO percent federal income tax. Still think tax rates are too low?