What the hell? Where is the band?

[hfojvt]

All this week it seemed like Obama was finally fighting on the side of working people. It was said he was gonna pay for his jobs bill with - tax increases on rich people.

Well, it is about damned time! Republicans are squawking about class warfare, as they always do when the lower class fights back.

And Obama hits back - it's not class warfare, it is math. Cam I believe it? I am almost in heaven. http://www.youtube.com/watch?v=DyfqW6td-yA

Then suddenly I am reading the fine print, and feeling like one of the Shropshire sheep.

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/assets/jointcommitteereport.pdf

Obama's principles for tax reform.

PRINCIPLES FOR TAX REFORM

"1. Lower tax rates. The tax system should be simplified and work for all Americans
with lower individual and corporate tax rates and fewer brackets."

Say what???? That is total Republican talking point. The code is "simplified by creating fewer brackets"? Bullfuckingshit. All that does is make it flatter and less progressive. And lower tax rates are the opposite of what we need, especially at the top.

Now some people might object "but we are gonna get rid of the loopholes, so the rich will end up paying more, even with lower rates".

Hah. How stupid are we if we believe that? The thing about loopholes is that they are fixed. A person making $1,000,000 is already taking advantage of every loophole there is. What does that mean? It means that if his income rises to $5,000,000 that he has to pay the top rate on that last $4 million because there are no more loopholes. And what do we know from the last 20 years of history? That the income of the rich has exploded.

In 1986, the top 1% had a total AGI of $285.2 billion. By 2007, this had grown to 2.01 Trillion. Obama's plan would give them LOWER rates on their increases in income. Making it worth their while to steal even more.


"2. Cut Inefficient and Unfair Tax Breaks. Cut tax breaks that are inefficient, unfair,
or both so that the American people and businesses spend less time and less money
each year filing taxes and cannot avoid their responsibility by gaming the system."

Okay sure, who do we know who "avoids their responsibility"?

Any guesses?

What does "avoiding responsibility" mean in this context?

It means paying no income taxes.

And who pays no income taxes?

Why the lucky duckies like me who live large on $12,000 in annual income that I pay no income tax on, and the rest of the accursed 47%.


"3. Cut the deficit. Cut the deficit by $1.5 trillion over the next decade through tax
reform, including the expiration of tax cuts for single taxpayers making over $200,000
and married couples making over $250,000."


For what it is worth, I still think that thresh-hold is way too damn high, but I won't bore you with the math.

Okay, I lied about that. Here's the math http://journals.democraticunderground.com/hfojvt/140 and some more math http://journals.democraticunderground.com/hfojvt/147


"4. Increase job creation and growth in the United States. Make America stronger
at home and more competitive globally by increasing the incentive to work and invest
in the United States."


Again with the Republican talking points. What takes away the incentive to work in the United States?

Oh, those awful high tax rates that "punish success".

And it is totally true. I, myself, would be making $100,000 a year right now if only it was not for the high tax rates. I mean why bother making another $88,000 a year if the government is just gonna take $6,732 in FICA taxes, and $13,200 in income taxes and another $6,160 in State income taxes? By gosh, that is another $26,000 in taxes. Why would I want to pay all those taxes? Why would I want to do all that extra work for a mere $61,908 more when I can live almost tax free (as long as you don't count sales taxes, gasoline taxes, state income taxes, property taxes and payroll taxes I am tax free) at $12,000?

A person would have to be a fool to work for an extra pittance like $61,908 and my mama :spray:

Sorry about that. I could not type that with a straight face.


"5. Observe the Buffett Rule. No household making over $1 million annually should
pay a smaller share of its income in taxes than middle-class families pay. As Warren
Buffett has pointed out, his effective tax rate is lower than his secretary’s. No household
making over $1 million annually should pay a smaller share of its income in
taxes than middle-class families pay. This rule will be achieved as part of an overall
reform that increases the progressivity of the tax code."


Okay. that part does sound good, but without talking about HOW this rule is enforced, it's kinda empty. Especially since the obvious answers are probably off the table
1. Treat dividends and capital gains just like wage income instead of giving them lower rates (and just wait for Republicans to claim that 75% of the people with capital gains income make less than $100,000 a year. Which happens to be true, until you check the math http://journals.democraticunderground.com/hfojvt/81)
2. create more brackets for higher incomes (note how he already called for fewer brackets)
3. increase the top rate (again, Obama already called for lowering of rates)


So this whole thing seems like an exercise in mis-direction, Kabuki theatre. Obama pretends to call for tax increases on the rich and Republicans pretend to get upset and meanwhile Obama advances a plan that does the opposite and Republicans pretend to be "forced" to pass it by public pressure (including from deluded liberals who like the idea of tax increases on the rich that they were promised).

Those of us who buy band instruments are gonna be surprised when it turns out there isn't any band. This plan, these "principles" do not help the working class, or the middle class, no matter what the rhetoric about trouble for the terrible rich people the Music Man talks about.

http://www.youtube.com/watch?v=ZV5Ys1Po-Vc&feature=related

[hfojvt]

1. okay 120 views and no replies

I guess that's better than a TL; DR.

But this morning I read this http://news.yahoo.com/fact-check-rich-taxed-less-secretaries-070642868.html

which claims that the Buffet rule is already being followed - for MOST million dollar earners.

I still see threads acting like Obama is proposing much higher rates for million dollar earners, and it seems clear to me reading the details of his proposal - that he is not. Regardless of his stirring "tax the rich" rhetoric, that is not what he is talking about. Much of the revenue increases in his proposal, come from ending the Bush tax cuts for people with incomes over $250,000. Something that is already in the works with the sunset of the Bush tax cuts. He's not proposing much for new tax increases on the rich.