Author
Patricia Murphy
Obama is perceived to have lost to Republicans in the debt deal, but the expiring Bush tax cuts could give him the upper hand in round two of the negotiations, says Patricia Murphy.
President Obama may have gotten rolled in the debt-ceiling negotiations with House Speaker John Boehner, but the president may still have his most powerful weapon at hand in future negotiations as the Bush-era tax cuts tick toward expiration at the end of 2012.
Unless Congress acts and Obama signs another extension into law, tax rates for all Americans will automatically revert to 2001 and 2003 levels. Liberal Democrats say that’s fine with them, arguing that taxes, especially for the wealthiest Americans, are at historic—and unfair—lows, at a time when important federal programs are falling to the budget ax.
But Republicans say letting the tax cuts expire would be disastrous and could lead to another, deeper downturn if Americans and small businesses face steeper taxes just as the country is climbing out of recession.
And therein rests Obama’s opportunity. With Republicans so focused on keeping the Bush tax cuts alive, the president could use another extension to protect Democrats’ most cherished programs when the congressional super-committee created by the debt deal starts its work in the fall. If he commits to extending some or all of the Bush cuts, Obama not only could gain significant leverage to influence the outcome of the committee, he also could position himself for the 2012 elections as the honest, moderate broker between the extremes of both parties.
And that’s what Obama’s fellow Democrats are afraid of. In the wake of the debt-ceiling fight, which saw major gains for Republicans and Tea Party interests and huge cuts to discretionary spending that liberals cherish, Capitol Hill Democrats describe a caucus that is bitterly disappointed in the outcome of the debate and deeply skeptical of the president’s ability, and even interest, in protecting their most important priorities.
So deep is the distrust that Vice President Biden went out of his way in a meeting with House Democrats this week to assure them that the president is committed to fighting for tax increases and tax reform in the future.
President Barack Obama speaks in the Rose Garden of the White House after the Senate passed the debt-ceiling legislation, Carolyn Kaster / AP Photo
“Having tax cuts as a political fight is fine with [Obama], and it will be a big part of the 2012 campaign,” said one senior Democratic aide briefed on the meeting. “With that said, the White House said that before and then they rolled.”
Although Republicans will absolutely fight to keep the Bush tax cuts alive, conservatives may have been so emboldened by the debt-ceiling debate that they may not think they need to negotiate with the president on the issue at all.
“Of all the things I’m worried about, the idea that the Republican House of Representatives will pass a tax increase is not on my list of things to worry about,” Grover Norquist told The Daily Beast. Norquist is the president of Americans for Tax Reform and a powerful voice on the tax issue for Republicans. He declared himself “peachy keen” on Tuesday after the Senate vote. He noted that with 23 Democrats up for reelection in 2012, including several in conservative states, Republicans will drive the debate, even without control of the White House or Senate, for now.
The first test of the tax battles will come in the next two weeks, when each of the congressional leaders appoints three members to the 12-member super-committee created by Congress this week to find $1.5 trillion of additional cuts to the federal budget. All sides agree that the politics of the people appointed will determine the outcome of the effort before it even gets started.
"Having tax cuts as a political fight is fine with [Obama] and it will be a big part of the 2012 campaign."
Senate Minority Leader Mitch McConnell made it clear this week that he won’t be appointing anybody who could be a “maybe” on the tax-increase issue, where only a “Hell no” will do. “Our first step will be to make sure those Republicans who sit on the powerful cost-cutting committee are serious people who put the best interests of the American people and the principles that we've fought for," McConnell said.
Harry Reid, no surprise, declared McConnell dead wrong.
“We've had too much talk the last few days of Republican leaders in the Senate saying there will be no revenue," Reid said. "That's not going to happen."
With Obama’s reelection, and control of the Senate, on the line, the president will have to thread a needle on the budget that only seems to grow smaller every day—one that allows him to protect the entitlements his base is demanding, while also shrinking the budget deficit that independent voters are criticizing, all while avoiding the blame for a tax increase the weeks and months before an election.
To complicate matters, Norquist says Obama is unlikely to find a partner across the negotiating table willing to help him achieve a victory before 2012.
“Whatever happens in this next election, the Democrats will be weaker. The Republicans don’t need to negotiate anything with them,” Norquist said. “Why would you sit down and negotiate with someone who will have less clout in 18 months than they do now?”
______________________________________________________________________
LeftLeaner
3 Days Ago
A Day in the Life of Joe Middle-Class Republican"
Joe gets up at 6:00am to prepare his morning coffee. He fills his pot full of good clean drinking water because some liberal fought for minimum water quality standards. He takes his daily medication with his first swallow of coffee. His medications are safe to take because some liberal fought to insure their safety and work as advertised.
All but $10.00 of his medications are paid for by his employers medical plan because some liberal union workers fought their employers for paid medical insurance, now Joe gets it too. He prepares his morning breakfast, bacon and eggs this day. Joe’s bacon is safe to eat because some liberal fought for laws to regulate the meat packing industry.
Joe takes his morning shower reaching for his shampoo; His bottle is properly labeled with every ingredient and the amount of its contents because some liberal fought for his right to know what he was putting on his body and how much it contained. Joe dresses, walks outside and takes a deep breath. The air he breathes is clean because some tree hugging liberal fought for laws to stop industries from polluting our air. He walks to the subway station for his government subsidized ride to work; it saves him considerable money in parking and transportation fees. You see, some liberal fought for affordable public transportation, which gives everyone the opportunity to be a contributor.
Joe begins his work day; he has a good job with excellent pay, medicals benefits, retirement, paid holidays and vacation because some liberal union members fought and died for these working standards. Joe’s employer pays these standards because Joe’s employer doesn’t want his employees to call the union. If Joe is hurt on the job or becomes unemployed he’ll get a worker compensation or unemployment check because some liberal didn’t think he should loose his home because of his temporary misfortune.
Its noon time, Joe needs to make a Bank Deposit so he can pay some bills. Joe’s deposit is federally insured by the FDIC because some liberal wanted to protect Joe’s money from unscrupulous bankers who ruined the banking system before the depression.
Joe has to pay his Fannie Mae underwritten Mortgage and his below market federal student loan because some stupid liberal decided that Joe and the government would be better off if he was educated and earned more money over his life-time.
Joe is home from work, he plans to visit his father this evening at his farm home in the country. He gets in his car for the drive to dads; his car is among the safest in the world because some liberal fought for car safety standards. He arrives at his boyhood home. He was the third generation to live in the house financed by Farmers Home Administration because bankers didn’t want to make rural loans. The house didn’t have electric until some big government liberal stuck his nose where it didn’t belong and demanded rural electrification. (Those rural Republican’s would still be sitting in the dark)
He is happy to see his dad who is now retired. His dad lives on Social Security and his union pension because some liberal made sure he could take care of himself so Joe wouldn’t have to. After his visit with dad he gets back in his car for the ride home.
He turns on a radio talk show, the host’s keeps saying that liberals are bad and conservatives are good. (He doesn’t tell Joe that his beloved Republicans have fought against every protection and benefit Joe enjoys throughout his day) Joe agrees, "We don’t need those big government liberals ruining our lives; after all, I’m a self made man who believes everyone should take care of themselves, just like I have".
rationalone
3 Days Ago
leftyweiner just woke up from his pot induced coma. Hope the pain is gone. Next welfare check in two days.
Izzy4u
3 Days Ago
LeftLeaner: I continue to wait in vain for the day you can express yourself in a clear, concise way, rather than posting the aged, long winded thoughts of others.
rationalone
3 Days Ago
Izzy - Potheads like leftyweinder are not capable of that.
Izzy4u
3 Days Ago
By the way, LL, there is such a thing as the legitimate role of Government. No one is disputing that. The problem comes when the Government gets into the redistribution of wealth, or spreading it around, like Obama likes to say. That is not a legitimate or Constitutional use of Government power......
Mr Bloss
3 Days Ago
ration
Go home, junior.
Izzy - Actually, we're very fond of old LeftLeaner. He has a way with him, don't you think?
Apolitical Ynot
3 Days Ago
Shooo, you wet blankets.
I like it.
Ah ok, you two are truth-averse.
Izzy4u
3 Days Ago
Bloss man: Yes, he has a way, and I understand why you guys like him. I'll just leave it at that.......
Equalizer
3 Days Ago
Left, great post.
Will copy and paste where needed........and give you credit, of course.
Suzanne12
3 Days Ago
Leftleaner
You left out the part where Joe gets his weekly pay check and realizes the government has sucked him dry. He's nothing but a slave to the big government machine.
Izzy4u
3 Days Ago
Equalizer: You're going to give LeftLeaner credit for what? Copying and pasting? Do you really think he made that up? I read that years ago.......
LeftLeaner
3 Days Ago
Suzanne123 Minutes Ago
Leftleaner
You left out the part where Joe gets his weekly pay check and realizes the government has sucked him dry..
_________
I think I left out the part where he is paying less taxes than in 1950, 1960, 1970, 80..
He actually is nothing but slave to the big trans national corporate machine, who uses the government to subsidize them, and help THEM compete against the little guys while forcing Joe to compete against the poorest people in the world;
Tom Delay explained it when he toured the horrid working conditions in the Marianas with Jack Abramoff;
DeLay fully approved of the working and living conditions. The Texan's salute to the owners and Abramoff's government clients was recorded by ABC-TV News: "You are a shining light for what is happening to the Republican Party, and you represent everything that is good about what we are trying to do in America and leading the world in the free-market system"
Apolitical Ynot
3 Days Ago
Izzy,
I understand, the wealth redistribution that you Right advocate is the money flowing upwards to the rich, big business, big oil and the billionaires.
I don't believe you hope to be very rich someday. Lotto has an odds lower than being hit by lightning.
I don't believe you have the brains to make that once-in-a-lifetime millions-making invention.
So, what are you. Koch's puppet and running dog?
zooage
3 Days Ago
Sorry, but those that actually beleive that the Right is a good thing are the largest part of the problem. They have no clue what awaits them when the middle class, forced by the failures of the GOP, refuse to work for them anymore. They will be lost, and it will seem like the end of the world. Their haughtiness will be their downfall, from which they won't be able to buy their way out of.
Since the age of Nixon we have watched the Right slowly destroy America with debt, wars, welfare for Corporations and Big Oil. They have reduced the middle class to but a shimmer of what it once was, and in doing so increased the need for entitlements to the brink. Yet they still refuse to take the blame for what they have caused, nor are they willing to pay for the damage.
Cut Cap an Balance is their new war Cry, but even the least knowledgeable amoung us knows that it's just another in their long list of failures.
LeftLeaner
3 Days Ago
Izzy4
The problem comes when the Government gets into the redistribution of wealth, or spreading it around, like Obama likes to say. That is not a legitimate or Constitutional use of Government power......
______________________________
EVERYTHING is redistribution of wealth.
When they conquered land and took it from the Indians, it was a redistribution of wealth.
Slavery was redistribution of wealth.
Land give aways to the railroads was a redistribution of wealth.
When JP Morgan started by buying five thousand rifles for $3.50 each from an army arsenal, and sold them to a general in the field for $22 each during the Civil War while the rifles were defective and would shoot off the thumbs of the soldiers using them.
That was a was redistribution of wealth.
Most wars are a redistribution of wealth.
When Medicare Part D gave taxpayer money to the private Medicare Advantage, THAT is a redistribution of wealth.
No bid, cost plus contracts are ALL redisstribution of wealth.
It's just a difference in what or whom you want to invest in.
FauxHunter and Equalizer like this.
LeftLeaner
3 Days Ago
I hope no one thinks I try to claim the JOE Republican; I have heard it so frequently from 2004, I assume EVERYONE knows it
It was written by John Gray Cincinnati, Ohio
FauxHunter
3 Days Ago
@LL
It was GREAT !!!
let the wingers leave the country
if
they don't like taxes...they shouldn't enjoy
the benefits of taxes..
don't drink our water, don't breath our air, don't
eat our food, don't use our roads,
don't enjoy our freedoms...etc
shew...many a third world country is built to
your standards already
shew..
Jerome
3 Days Ago
Then Joe gets home from a long tiring day at work, and some left leaning liberal comes in his house, takes Joe's wallet out of his pocket, takes half the money in there and goes and gives it to some lazy piece of crap that sat on his couch all day playing xbox on his flat screen television he bought with his welfare check.
DavisJohn
3 Days Ago
Actually...
Joe wakes up and squeezes orange juice from the oranges he grows in his garden (in spite of all of the liberal zoning laws that try to prevent him).
Joe doesn't take medications because he exercises, eats well, and lives a non-liberal life style.
Joe rides his bike to work. He enjoys the exercise, and he wants to reduce pollution. On his way to work, he has to avoid all of the pot holes in the road. Occasionally, he sees a team of up to 10 government workers standing around watching one other worker filling a pot hole. Because they are union workers, most of them actually don't do a think while the one guy does all of the work.
Joe is self-employed. He struggles to survive the increase in health care costs for each of his employees because of Obamacare. He has to hire an administrative assistant just to handle government regulations and red tape. Joe is an enemy to liberals because every few years he gets lucky and makes a salary over $200,000. Other years, Joe isn't so lucky. Sometimes he has to take more risks and borrow more money because he doesn't believe in laying off his employees even when income is down.
Joe worked from the time he was 10 years old to pay for his college education because his parents taught him that their is no free lunch.
Joe comes home from work and takes care of his retired and aging parents because he feels that it is his responsibility and not the government's.
His dad refuses to accept any Social Security because he knows the government is broke, and he saved for his own retirement. Joe is doing the same thing.
Joe is me.
_______________________________________________________________________
Jomolager2
3 Days Ago
Having read Patricia Murphy's article and many (not all) of the posts following it I am a bit surprised that (of the comments I read) only two posters - Gvnn & Sufi - mentioned Grover Norquist's role in US politics. This is the time for ALL Americans to figure out for themselves what they think about Mr. Norquist and his modus operandi. Is he good for US, is he not good for US as a whole, not just one small segment????
Norquist indubitably will be among the main reasons for GOP loss among INFORMED electorate come 2012.
1. Norquist was never elected or appointed to any position of responsibility, to my knowledge, not even as a dogcatcher, yet he has enough power to demand that GOP senators and congressman sign his "no tax pledge." GOP members of Congress enthusiastically do, and they seem to be more loyal to this pledge than to the well being of people who elected them. Shouldn't we ask WHY?
2. Norquist has an unprecedented media access equal only to the highest echelon of members of Congress and Administration. He participates in WP live discussion and Sunday morning Talks and speaks with such authority as if he were more equal among equals, even though he has as much right to be there, as let's say, "yomama," whose vocabulary is embarrassing 18 words, and who doles out right and left such unimaginative epithets as " parrots" while having absolutely no idea what is being discussed.
3. American electorate is often NOT informed, but it is NOT dumb as a whole. They expect to be represented on the Hill by politicians who pledge allegiance to protect and defend US constitution, not ideas and causes introduced by a man who makes $200 000.00 a year from one of his numerous part time jobs, (24 hours a week = $200000 a year) Norquist is paid more per 30 minute speech, than many Americans make a year and consider themselves lucky. Is he really concerned with opinions or wellbeing of those who make considerably less $$$$ than he does?
4. How many of the uninformed / misinformed Americans who support him know today that he is married to a Muslim with Qatar affiliations and that the arch-conservative Republicans are not happy with that? Personally, I don't have any problems with a Muslim / Buddhist /Hindu / etc. spouses, but I doubt that birthers, jihadists, those who relish the Koran burning and all those who disrupt discussions on TDB in support of GOP feel the same way.
When a few weeks ago I first logged on to this site I was fascinated by what I thought was "the true opinions" of a cross section of Americans who live beyond the Beltway. Now I know I was wrong.
There are people who actually read the TDB articles and share their opinions, and there are people who only read the last comment and rudely, crudely and mostly in an illiterate and cretinlike way insult those they don't agree with.
At this point I don't know whether they do it to gratify themselves or others, but regardless, of what the members of these "Attack Squads," who appear as Neutralizer points out in shifts, say, their uninformed opinions and insults are waste of time for those who write them, and for those who read them.
It seems to me that both sides for at least a moment should focus on Grover Norquist, is he good for America? Is signing his tax pledge a feather in the cap for an honest member of Congress or is it a serious mistake and a flow in judgement?
This is what we should be thinking and talking about, not about the nonsense Pauls & Yarbels& yomas want to distract us with. I no longer read anything they post, and I hope I am not alone.
REPLY
Apolitical Ynot
3 Days Ago
It's all hypocrisy for the Right.
They are ok with corporate welfare and tax cut for the rich.
Izzy4u
3 Days Ago
JomoLager: Is George Soros good for the country?Yarbels and rationalone like this.
paulejb
3 Days Ago
Jomolager2
Anyone who opposes higher taxes is an American hero. Politicians cannot spend our money better than we can. They just use it to buy votes.
Mr Bloss
3 Days Ago
Are the Koch boys?
Mr Bloss
3 Days Ago
paul
Do the Chinese pay your salary checks?
INTJ91
3 Days Ago
"Is signing his tax pledge a feather in the cap for an honest member of Congress or is it a serious mistake and a flow [sic] in judgement?"
Hmm. Let me think. My elected representatives signing a pledge not to increase my taxes. From where I sit, I'm seeing feathers.
Izzy4u
3 Days Ago
Mr. Bloss
The Koch Brothers and George Soros are two sides of the same coin: Multi Billionaires who use their wealth to try to influence people to agree with their way of thinking. However, only the Koch brothers are routinely vilified in the media, while Soros does most of his work under the cover of, and with the quiet agreement of, those in the media.Yarbels likes this.
Yarbels
3 Days Ago
So your saying Norquist is far more qualified to be president than Obama? We all already knew that.
Jomolager2
3 Days Ago
No Yarbels, I am not saying that all.
Norquist is U N E LE C T A B L E!
Yarbels, my dear, poor Yarbels,
Norquist would not want to be elected to Congress or WH, it would mean cut in pay&power base and in addition to that he would have to respect the laws of the land.
PS: I don't mean to be insulting, but you sure have difficulties dealing with facts.
3 Days Ago
Having read Patricia Murphy's article and many (not all) of the posts following it I am a bit surprised that (of the comments I read) only two posters - Gvnn & Sufi - mentioned Grover Norquist's role in US politics. This is the time for ALL Americans to figure out for themselves what they think about Mr. Norquist and his modus operandi. Is he good for US, is he not good for US as a whole, not just one small segment????
Norquist indubitably will be among the main reasons for GOP loss among INFORMED electorate come 2012.
1. Norquist was never elected or appointed to any position of responsibility, to my knowledge, not even as a dogcatcher, yet he has enough power to demand that GOP senators and congressman sign his "no tax pledge." GOP members of Congress enthusiastically do, and they seem to be more loyal to this pledge than to the well being of people who elected them. Shouldn't we ask WHY?
2. Norquist has an unprecedented media access equal only to the highest echelon of members of Congress and Administration. He participates in WP live discussion and Sunday morning Talks and speaks with such authority as if he were more equal among equals, even though he has as much right to be there, as let's say, "yomama," whose vocabulary is embarrassing 18 words, and who doles out right and left such unimaginative epithets as " parrots" while having absolutely no idea what is being discussed.
3. American electorate is often NOT informed, but it is NOT dumb as a whole. They expect to be represented on the Hill by politicians who pledge allegiance to protect and defend US constitution, not ideas and causes introduced by a man who makes $200 000.00 a year from one of his numerous part time jobs, (24 hours a week = $200000 a year) Norquist is paid more per 30 minute speech, than many Americans make a year and consider themselves lucky. Is he really concerned with opinions or wellbeing of those who make considerably less $$$$ than he does?
4. How many of the uninformed / misinformed Americans who support him know today that he is married to a Muslim with Qatar affiliations and that the arch-conservative Republicans are not happy with that? Personally, I don't have any problems with a Muslim / Buddhist /Hindu / etc. spouses, but I doubt that birthers, jihadists, those who relish the Koran burning and all those who disrupt discussions on TDB in support of GOP feel the same way.
When a few weeks ago I first logged on to this site I was fascinated by what I thought was "the true opinions" of a cross section of Americans who live beyond the Beltway. Now I know I was wrong.
There are people who actually read the TDB articles and share their opinions, and there are people who only read the last comment and rudely, crudely and mostly in an illiterate and cretinlike way insult those they don't agree with.
At this point I don't know whether they do it to gratify themselves or others, but regardless, of what the members of these "Attack Squads," who appear as Neutralizer points out in shifts, say, their uninformed opinions and insults are waste of time for those who write them, and for those who read them.
It seems to me that both sides for at least a moment should focus on Grover Norquist, is he good for America? Is signing his tax pledge a feather in the cap for an honest member of Congress or is it a serious mistake and a flow in judgement?
This is what we should be thinking and talking about, not about the nonsense Pauls & Yarbels& yomas want to distract us with. I no longer read anything they post, and I hope I am not alone.
REPLY
Apolitical Ynot
3 Days Ago
It's all hypocrisy for the Right.
They are ok with corporate welfare and tax cut for the rich.
Izzy4u
3 Days Ago
JomoLager: Is George Soros good for the country?Yarbels and rationalone like this.
paulejb
3 Days Ago
Jomolager2
Anyone who opposes higher taxes is an American hero. Politicians cannot spend our money better than we can. They just use it to buy votes.
Mr Bloss
3 Days Ago
Are the Koch boys?
Mr Bloss
3 Days Ago
paul
Do the Chinese pay your salary checks?
INTJ91
3 Days Ago
"Is signing his tax pledge a feather in the cap for an honest member of Congress or is it a serious mistake and a flow [sic] in judgement?"
Hmm. Let me think. My elected representatives signing a pledge not to increase my taxes. From where I sit, I'm seeing feathers.
Izzy4u
3 Days Ago
Mr. Bloss
The Koch Brothers and George Soros are two sides of the same coin: Multi Billionaires who use their wealth to try to influence people to agree with their way of thinking. However, only the Koch brothers are routinely vilified in the media, while Soros does most of his work under the cover of, and with the quiet agreement of, those in the media.Yarbels likes this.
Yarbels
3 Days Ago
So your saying Norquist is far more qualified to be president than Obama? We all already knew that.
Jomolager2
3 Days Ago
No Yarbels, I am not saying that all.
Norquist is U N E LE C T A B L E!
Yarbels, my dear, poor Yarbels,
Norquist would not want to be elected to Congress or WH, it would mean cut in pay&power base and in addition to that he would have to respect the laws of the land.
PS: I don't mean to be insulting, but you sure have difficulties dealing with facts.
_____________________________________________________________________
maeve1233 Days Ago
President Obama--Please be strong re: the Bush Tax Cuts. They must be ended, as swiftly as possible. We are fast becoming a country of the very wealthy and the very poor and oh yes, the disappearing Middle Class. This has to change. The other point is Medicare can not be cut in order to give the wealthy few even more wealth while the majority of the citizens suffer.
And to Izzy I say, you can prove anything with numbers. The fact is that the very rich are richer and they are richer because the middle class is poorer.
If the 15 million people who are currently unemployed including my son who worked for a company for 20 years before they closed forever, could find a job, the tax coffers would be full. Istead the rich are at the country club playing golf while the common folk are trying to keep a roof over their heads, food on the table and medicine in their cabinets. The unemployed aren't worried about who saves them...whether they are liberal or conservative they just want to
REPLY
Yarbels
3 Days Ago
Obama be strong? I told you good folks last time that he would not raise taxes on himself and his rich friends. He said less than six months ago that raising taxes on anyone even the rich was a bad idea at this time. Of course Obama only cares about a second term so....now that the Dems are talking about getting a real candidate for 2012 Obama will do what ever he is told! Well by the Dems for a change.
mushyyogurt500
3 Days Ago
Why do all hardcore Republicans who comment on news articles take up the exact same arguments? They're always against taxes on the top 10% of our country or claim that all entitlement programs do no good and are for lazy people. But they do so with no supporting evidence or coherent arguments. Hardcore Dems do it too, but usually in an organized manner (even if it's just as ignorant as a Tea Partier)
Are you all in that 10% so that these taxes would actually affect you or are you just fighting it because it's claimed evil by the people you elected? Seriously, I just don't understand why else you would defend people who don't give a shit about you. I'm in that top 10% and I still support increased taxes on the wealthy.
Yarbels, rationalone, jeffallen?
_____________________________________________________________________
Izzy4u
3 Days Ago
I know you liberals have been taught to hate the rich and that they must be made to "pay their fair share". My question for all of you is, What exactly is their "fair share"?
Here are the facts:
The top 1 percent of all households got 18 percent of all personal income and paid nearly 28 percent of all federal taxes in 2005, according to the Congressional Budget Office. The top 1 percent now pay a significantly larger share of taxes than before President Bush’s tax cuts, and also have a larger share of income.
As for taxes, CBO calculates that the top 1 percent paid 27.6 percent of all federal taxes, including:
■38.8 percent of federal individual income taxes
■58.6 percent of corporate income taxes (indirectly, through stock ownership)
The share now borne by the top 1 percent is the highest it has been since 1979, the earliest year for which CBO has figures. And surprisingly, it is larger than in 2000, the last year of President Bill Clinton’s administration, before President Bush signed a series of tax cuts
So again I ask: What is their fair share?
FULL ANSWER:Q: What percent of taxes does the top 1 percent pay and what percent of the income do they make?
Top 1%: What They Make and PayMay 2, 2008
A: The top 1 percent of all households got 18 percent of all personal income and paid nearly 28 percent of all federal taxes in 2005, according to the Congressional Budget Office. The top 1 percent now pay a significantly larger share of taxes than before President Bush’s tax cuts, and also have a larger share of income.
The nonpartisan CBO keeps track of such things and published its most recent tables in December 2007. The information to answer this question is in "Summary Table 2: Shares of Federal Tax Liabilities, 2004 and 2005."
The top 1 percent in 2005 were those households with income of at least $307,500, and they got 18.1 percent of all "comprehensive" income, which includes all cash income plus the cash value of such benefits as Medicare and food stamps.
As for taxes, CBO calculates that the top 1 percent paid 27.6 percent of all federal taxes, including:
The share of taxes paid by different income levels have changed over time.
- 38.8 percent of federal individual income taxes
- 4.0 percent of federal social insurance taxes (Social Security and Medicare)
- 58.6 percent of corporate income taxes (indirectly, through stock ownership)
- 5.5 percent of federal excise taxes (on such things as gasoline, tobacco, alcoholic beverages and telephones.)
The share now borne by the top 1 percent is the highest it has been since 1979, the earliest year for which CBO has figures. And surprisingly, it is larger than in 2000, the last year of President Bill Clinton’s administration, before President Bush signed a series of tax cuts that benefited upper-income taxpayers by cutting the top rate on federal income taxes, cutting the rate on capital gains taxes and reducing the estate tax. One reason is that the top 1 percent now receive a greater share of income than at any time covered by CBO’s statistics, though those households receive only slightly more than the 17.8 percent share they got in 2000.
The change in income distribution is only one reason the top 1 percent pay more now than before their income tax rates were cut. The major reason is what the CBO and other tax experts call "real bracket creep." Even though income tax brackets are adjusted upward each year for inflation, there is still a tendency for incomes to grow faster than inflation, causing more income to be taxed in higher brackets.-Brooks Jackson
Sources
U.S. Congressional Budget Office. "Historical Effective Federal Tax Rates: 1979 to 2005" Summary Table 2, December 2007.U.S. Congressional Budget Office. "Historical Effective Federal Tax Rates: 1979 to 2005" Appendix: Detailed Tables for 1979 to 2005 Tables 1A and 1B, December 2007.
REPLY
Greenday
3 Days Ago
We all know rich has a way to dodge tax and the working class has no way to evade tax. That is the fact. You will understand what I am talking about if you are as rich as I am.
Mr Bloss
3 Days Ago
Izzy
You silly little thing. Who would, or could, teach anyone to "hate the rich"? Do you think the rich should not pay their fair share? If so, why?
So how's the job going? Do they pay you or is it just intern stuff?
Apolitical Ynot
3 Days Ago
When a middle class worker who gets paid for the sweat of his brow is taxed 22% while the billionaire Koch brothers of this world are taxed 15% out of their dividend income (making their money earn more money) -- that is basically not fair share.
LeftLeaner
3 Days Ago
Izzy4u2 Minutes Ago
I know you liberals have been taught to hate the rich and that they must be made to "pay their fair share". My question for all of you is, What exactly is their "fair share"?
Wealth inequality in the United States is at historic highs, with the top 1% of Americans hold nearly 50% of the wealth, topping even the levels seen just before the Great Depression in the 1920s
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You mean like Warren Buffet?
Or Venture capitalist Nick Hanauer in a conference call with Bill Gates, Sr.,
Our country is having an extremely important argument about taxation. We have lived the trickle-down theory since the Reagan years, and are now having a great debate about whether it does or does not work. Clearly, it does not.
"The public sphere is as essential to the creation of wealth in a democratic society as the private sphere. They are inextricably intertwined. And, to the degree to which we have as citizens the capacity to invest strategically in the public sphere, defines our ability to create wealth for ourselves and our fellow citizens."
They must REALLY be lazy bums who are envious of those who 'produce'.
While your stats are true they do not touch upon how much is used;
LeftLeaner
3 Days Ago
Sorry, I write on a word document, because I can not stand this page sliding.
You mean like Warren Buffet?
Or Venture capitalist Nick Hanauer in a conference call with Bill Gates, Sr.,
Our country is having an extremely important argument about taxation. We have lived the trickle-down theory since the Reagan years, and are now having a great debate about whether it does or does not work. Clearly, it does not.
"The public sphere is as essential to the creation of wealth in a democratic society as the private sphere. They are inextricably intertwined. And, to the degree to which we have as citizens the capacity to invest strategically in the public sphere, defines our ability to create wealth for ourselves and our fellow citizens."
They must REALLY be lazy bums who are envious of those who 'produce'.
While your stats are true they do not touch upon how much is used;
Wealth inequality in the United States is at historic highs, with the top 1% of Americans hold nearly 50% of the wealth, topping even the levels seen just before the Great Depression in the 1920s
Tservo
3 Days Ago
Hate the rich? I'm not into the whole self loathing thing, dude.
Lots of liberals are rich. The only difference is the degrees of resentment. The Right wing bag are toxic stews of resentment- they took my money! How dare they be disabled?! Who says they gotta eat?!
Junk like that truly eats away at one's soul.
Me, on the other hand, has a lot and pays a lot so my fellow citizens will be healthy and educated.
See, liberals like lots of winners, but the Right wants to be the only winner, so they can jeer at all the losers.
This board proves it, every freaking day.
paulejb
3 Days Ago
Ynot,
A middle class worker who makes wise investments also pays 15% on his profit. Do you want to raise their taxes?
Izzy4u
3 Days Ago
Mr Bloss: "Do you think the rich should not pay their fair share?"
Did you even read my post? Just to clarify, my point was twofold. Number one, by most interpretations of the phrase, "the rich" already pay their "fair share". Secondly, and more importantly, it was to question you liberals as to what you believe "fair share" means.
As far as being taught to hate the rich, what do you think the effect of all this yelling that "we have to make the rich pay their fair share" is? Or pitting corporate jet owners against autistic children? Isn't that just the type of rhetoric that inspires people to hate the rich?
LeftLeaner
3 Days Ago
Tservo3 Minutes Ago
Hate the rich? I'm not into the whole self loathing thing, dude.
Lots of liberals are rich.
_____________________
I always find it amazing that people have to invent a charactercher of people who disagree with them.
Izzy4u
3 Days Ago
OK, I'm sorry. Liberals don't hate the rich. And they don't hate the Tea Party either......
Mr Bloss
3 Days Ago
Izzy
Talking of just losing the argument... Really!
You're going to have to do better than that if you expect those nice Koch boys to pay you anything at all.
