Obama will never deliver on the middle-class tax cuts he promised. Get used to it.
“I can make a firm pledge. Under my plan no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
That was the central pledge on which Barack Obama was elected President. He pledged to extend the Bush tax cuts for everyone making less than $250,000 per year, but to let them expire and raise tax rates for “the rich,” which he defined as those making more than $250,000 per year.
President Obama and the Democrats have had two years to make good on this pledge. And now they have failed. Last week, House and Senate Democrats decided not to hold a vote on extending the Bush tax cuts before the election in November. As a result, a tax increase of $4 trillion is now scheduled to go into effect on January 1, the largest tax increase in world history. And most of that is on the middle class and lower income workers.
The bottom tax rate of 10% would increase by 50% to 15%. The other tax brackets would rise by similar amounts as well. The child tax credit would shrink by one-half. The marriage penalty, taxing a couple more than if they had remained single, would go back into effect. For a family of four earning $50,000 in income, the income tax burden would rise by nearly $3,000 in 2011 alone, according to a study by the tax accounting firm Deloitte Tax LLP. For a small business owner earning $100,000 a year, the income tax burden would rise by $4,500 per year.
This is apart from all the further taxes in Obamacare, and the other tax increases the Democrats have adopted over the past two years. The Alternative Minimum Tax will also apply to another 25 million middle class taxpayers next year, further increasing their tax rates.
In his weekly radio address last Saturday, President Obama continued his deceptive rhetoric to mislead voters about all of this, saying, “Instead of cutting taxes for the wealthiest few — tax breaks we cannot afford — I’ve called for tax cuts for middle class families.” But if Bush and the Republicans cut taxes only for the wealthiest few, then why is the expiration of their cuts raising taxes on the middle class and even more modest income earners, as just shown above? And while President Obama did indeed “call for tax cuts for middle class families,” that is how he got elected in fact, it was Bush and the Republicans who actually did cut taxes for middle class families, while Obama and the Democrats have failed to make good on even continuing those tax cuts.
Not to worry, the Democrats say, they will come back and extend the Bush tax cuts for the middle class in the lame duck session after the election. But why after the election? If they have not done it in the last two years, why can they be trusted to do it if the voters give them another two years? Has this Pelosi/Reid crew of surly pirates proved worthy of such trust? After they are reelected, if they don’t make good on their promise in December, you will be stuck with them and the thorough socialist nostrums of today’s Democrat Party for the next two years.
Or is the real desire of the Democrats to forget about those Bush tax cuts altogether, because they want the money for even more government spending to buy even more votes for their Big Government political machine? As the Wall Street Journal explained on Monday:
Keep in mind that this is the not-so-secret desire of many on the left who think the country ‘can’t afford’ to let Americans keep so much of their own money. Peter Orszag has already admitted this since leaving his post as White House budget director. What these Democrats really mean is that they think the only way to pay for their spending plans is by soaking the middle class — because that is where the real money is.
The December Surprise
President Obama himself gave a veiled indication Monday that the Democrats may, in fact, be planning a “December surprise” for voters, after the election. In denouncing the Republicans’ Pledge to America, discussed further below, President Obama said, “They propose $4 trillion worth of tax cuts and $16 billion in spending cuts. And then they say we’re going to somehow magically balance the budget. That’s not a serious approach.”
That $4 trillion in tax cuts mostly includes the middle class provisions Obama has pledged to extend. The tax increases on the rich (those greedy overachievers earning over $250,000 a year with their excessive work habits) are estimated by the government itself to raise only $700 billion.
What Obama is suggesting here is that extending the middle class tax cuts needs to be offset in some way. In other words, allowing the middle class to keep trillions of its own money needs to be “paid for.” And don’t think that after a lifetime of extreme neo-socialism President Obama is talking about trillions in spending cuts. (You need the Tea Party for that).
What is scheduled for December 1 is the report of President Obama’s Debt Commission. After that, as well as after the election, is when Democrats now propose to take their vote on making good on their campaign pledge to the middle class. The December surprise will be to propose an offsetting tax increase on the middle class to make the Bush tax cuts permanent, such as a Value Added Tax (VAT), which House Speaker Nancy Pelosi and other top Democrats have already endorsed. That, the Democrats will say, is the serious, responsible approach, relying on the report of the Debt Commission to back them up.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?