The American Spectator : The Tax Hike Election of 2012

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The Tax Hike Election of 2012

By Grover G. Norquist from the April 2012 issue

Obama and the Democrats think the promise of higher taxes will be a winner for them this year.

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It is difficult to educate voters about something they do not know and perhaps do not wish to believe, in the middle of a political campaign where all messages are understandably suspect. Better to build on the fully justified fear Americans have that any effort to tax the rich will actually hit them.

Rasmussen found in July 2011 that 75 percent of Americans believed any debt ceiling solution that balanced tax increases and promised budget cuts would actually result in higher taxes for the middle class. Despite Obama’s promises to tax “the rich,” they understood that the middle class was the real target.

2013 Tax Hikes

Tax Rates Rise from Range of 10-35 Percent Up to 15-39.6 Percent
Capital Gains Tax Rises from 15 to 23.8 Percent
Dividends Tax Rises from 15 to 43.4 Percent
Tax on Majority of Small Employer Profits Rises from 35 to 43.4 Percent
Death Tax Rate Rises from 35 to 55 Percent
Death Tax “Standard Deduction” Falls from $10 million to $1 million
Employee Social Security Tax Rate Rises from 4.2 to 6.2 Percent
Households Affected by Alternative Minimum Tax Rises from 4 Million to 30 Million Households
Research and Development Tax Credit Disappears
Marriage Penalty Returns for All Taxpayers; Child Tax Credit Cut in Half from $1000 to $500

OBAMA IS NOT EXACTLY the first American politician to try to pit taxpayers against each other by promising to tax “the rich.” Five times in Massachusetts, the advocates of a graduated or progressive income tax have placed on the ballot a measure to repeal the present constitutionally mandated flat tax. Five times—1962, 1968, 1972, 1976, and 1994—the people of deep-blue Massachusetts voted down the move, understanding that eventually, and soon, the higher taxes would hit everyone. On the other side of the continent, equally deep-blue Washington state has seven times voted down the imposition of an income tax—in 1934, 1936, 1938, 1942, 1970, 1973, and, in the age of Obama, 2010. The most recent attempt, led by rich liberals such as Bill Gates’ father, would have imposed an income tax only on individuals earning more than $200,000 or married couples earning $400,000. It was voted down 64–36, despite the fact that the initiative sweetened the pot by promising simultaneously to limit the statewide property tax by 20 percent and hand out higher business and occupational tax credits. Bribery and envy were not enough in a state Obama carried in 2008 with 57 percent of the vote.

Polling and voting history show Americans are not excited about looting “the rich.” They do, however, want to know they are not paying more than those who earn more than they do. The transparency of a flat-rate income tax would help provide that assurance. Complexity is the ally of politicians who peddle the claim that “they” are not paying their fair share. And, fatal to Obama and Schumer’s plan, Americans know in their guts that efforts to tax the rich put them in the crosshairs.

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About the Author

Grover G. Norquist is the president of Americans for Tax Reform.

Letter to the Editor View all comments (66) | Leave a comment Leave a comment

oldfart| 4.5.12 @ 7:57AM

It makes no difference how much taxes are raised it will never been enough to satiate the desire to spend, spend, spend. There is enough evidence out there to prove this statement. Here are just three examples.
1. California
2. New York (state and city)
3. Maryland

Some states, New Jersey and Wisconsin, have figured out that you cannot spend yourself into wealth and are trying to do something about it.

As has been pointed out by others, the Progressives could confiscate all the assets of everyone with a net worth over $500K (homes and retirement plans included) and it still will not be enough to cover their spending plans.

One can only conclude that the modern education system does not teach people HOW to think, but WHAT to think. How many 20 somethings can actually reason on their own? Not many that I have seen – they are too busy chasing the latest smart phone or wondering what some no talent Hollywood 'star' is wearing.

The Executive and Legislative branches of the Government will NOT stop until economic collapse cuts off the flow of funny money. These bozos have dug themselves into a hole and are too STUPID to figure out that when you find yourself in a hole – STOP DIGGING.

benny havens| 4.5.12 @ 8:47AM

Ineptocracy (in-ep-toc'-ra-cy) - a system of government where the
least capable to lead are elected by the least capable of producing, and
where the members of society least likely to sustain themselves or succeed,
are rewarded with goods and services paid for by the confiscated wealth of a
diminishing number of producers.

This was just sent to me this morning. If this doesn’t describe Obama, his Administration and the Democratic Party, I don’t what does.

benny havens| 4.5.12 @ 8:49AM

I don't "know" what does.

ENOUGH ROPE| 4.5.12 @ 10:52AM

Obama is the most anti-Christ, most anti-American, most racist, and most lying American president ever. That should become a superpac campaign slogan.

Months ago, Mark Levin interviewed John Lott (More Guns, Less Crime) who was employed by the U Chicago Law School while Obama taught there. According to Lott, Obama did NOT teach constitutional law.

SUBVET| 4.5.12 @ 1:13PM

Just one more lie..................

Nick| 4.6.12 @ 1:53AM

SUBVET,

I'm waiting for your response to my reply, in the Cardinal Wuerl thread.

markenoff| 4.6.12 @ 10:43PM

They're a cross between an ineptocracy and a kleptocracy.

Independent Thinker| 4.5.12 @ 3:40PM

Wake up, folks: It's Romney or Obama...Take your pick.

gearjammer| 4.5.12 @ 8:54AM

The democrats want all the money.

JmsA| 4.5.12 @ 5:24PM

If it only were the money they were after. No, they want much more than that. They want to transform it to something the very opposite of that intended/created by the Founders. They want tyranny. When they speak of equality they mean equality of misery for all except for the political class and the crony capitalist and other elites who help them retain and increase their power. The Chicoms and the socialist island prison just 90 miles off our southeastern coast are two of the models they're interested in following. And guess what? Unless we do something about it, and soon, that's just what we'll get.

Mimi| 4.5.12 @ 8:58AM

Who would run for President vowing to raise taxes...Did they Win?

gearjammer| 4.5.12 @ 9:21AM

Obama-said he'd raise them on the rich. Remember ?

Mike Hawk| 4.5.12 @ 10:30AM

Walter Mondull. Reagan wiped him out in an epic ;landslide.

russell.j.coller.jr| 4.5.12 @ 3:14PM

.....Dennis Miller: " Reagan stomped Mondale so bad in 1984 he made McGovern '72 look like William the Conqueror. "

Indy| 4.5.12 @ 9:29AM

I do believe in reducing some credits, we cannot survive as a Republic if ~50% pay no Federal Income Taxes - please spare me the speech "but they pay payroll taxes, sales taxes, gas taxes" those of us who pay Federal Income Taxes pay all of those other taxes on top of what we pay to the Feds. Everyone must have skin in the game.

The GOP is terrible on messaging, they know this is the election plan, are they ready? Of course not, why do companies like GE, Google pay little to no taxes? They reap the benefits of a complex tax code designed to drive behaviors and political payoffs. We only hear about the "evil" oil companies and bankers but silence on Obama's favorites, come on GOP, get rid of some of these credits.

I support a flat tax but it will not happen in this election cycle.

jan| 4.8.12 @ 4:05PM

Indy, corporations DO NOT pay taxes, they are merely tax collectors for the WA DC scum!

John| 4.5.12 @ 9:54AM

As far as taxing companies...
In reality they don't pay tax, they just pass it on to the consumer. The consumer actually pays all taxes one way or another. If the employees didn't pay taxes that would be different.

Roy N.| 4.5.12 @ 8:04PM

Exactly. I doubt that most people in this country realize that goods and services purchased from corporations would cost less without a corporate income tax. The incomes of most wage earners would go a lot further than now.

Clint| 4.5.12 @ 10:18AM

" DR. RON PAUL “PLAN TO RESTORE AMERICA”

TAXES:

Lowers the corporate tax rate to 15%, making America competitive in the global market. Allows American companies to repatriate capital without additional taxation, spurring trillions in new investment. Extends all Bush tax cuts. Abolishes the Death Tax. Ends taxes on personal savings, allowing families to build a nest egg. "

http://www.ronpaul2012.com/the.....e-america/

The Tea Party Rebellion Heads To An Open Convention.

Mike Hawk| 4.5.12 @ 10:28AM

Hey Goofus, Rube Paul isn't the only one proposing this, it is basically the Conservative platrform. Paul is not a conservative even though some of his proposals may be.

Clint| 4.5.12 @ 12:03PM

Hey Goof Ass, Little Micky Hawklette,

" Ron Paul’s constitutional conservative credentials are unmatched.

He is:

*** 100% Pro-Second Amendment. Paul has received a lifetime “A” rating from the NRA, and I was given the “Defender of the Second Amendment Award” by Gun Owners of America in 2011. I’ve voted against gun control – EVERY time.

*** 100% Pro-Right to Work. Paul has never caved to the union bosses’ pressure. I voted to defeat Big Labor’s “Card Check” scheme, and I will continue the fight I’ve led as a congressman to the White House by fighting for passage of a National Right to Work Act.

*** 100% Pro-Health Freedom. Paul has introduced legislation in Congress to repeal ObamaCare’s hated individual mandate. As President, I will order all federal agencies to stop enforcing any rules and regulations related to ObamaCare, and I will veto any bills that fund this unconstitutional powergrab.

While Mitt Romney receives his most contributions from Wall Street, the top three donors to Ron Paul’s campaign by occupation are U.S. Army, U.S. Air Force and U.S. Navy.

Paul has received more support from active duty military than all my opponents combined, and my other donors are everyday grassroots Patriots like you who just want to enjoy the full blessings of freedom and pass them on to the next generation. "

DR. RON PAUL “PLAN TO RESTORE AMERICA”

SPENDING:

Cuts $1 trillion in spending during the first year of Ron Paul’s presidency, eliminating five cabinet departments (Energy, HUD, Commerce, Interior, and Education), abolishing the Transportation Security Administration and returning responsibility for security to private property owners, abolishing corporate subsidies, stopping foreign aid, ending foreign wars, and returning most other spending to 2006 levels."

http://www.ronpaul2012.com/the.....e-america/

The Tea Party Rebellion Heads To An Open Convention.

Oldefarte| 4.5.12 @ 1:23PM

SHOVE THIS WHERE THE SUN DON'T SHINE. Ain't gonna be no open or brokered convention, except maybe in LJ with you and TOO SHORTS in attendance:
'..... Poll: Romney Takes 5 Point Lead Over Santorum in PA Thursday, April 5, 2012 10:52 AMBy: Newsmax ...Republican presidential front-runner Mitt Romney leads rival Rick Santorum 42 percent to 37 percent among likely GOP primary voters in Santorum’s home state of Pennsylvania, according to a new survey from Public Policy Polling (PPP). Ron Paul places third with 9 percent support and Newt Gingrich fourth with 6 percent. The numbers represent a significant reversal from the last PPP survey a month ago, which showed Santorum ahead 43 percent to 25 percent.Former Pennsylvania Sen. Santorum is hoping that the April 24 Keystone State primary serves as his firewall, calling it a must-win state. “The momentum in Pennsylvania is moving completely against Rick Santorum,” said PPP President Dean Debnam. “Mitt Romney has a great chance to deliver a final crushing blow to his campaign on April 24. A home state loss would be incredibly embarrassing for Santorum.”
Only 36 percent of Republicans in Pennsylvania think Santorum has a realistic chance for the nomination, while 54 percent believe he doesn’t.....'

Mike Hawk| 4.5.12 @ 3:51PM

Paul is no Constitutional scholar. You want a Constitutional scholar, it's Mark Levin, but you Paulistinains hate him and won't accept it. Stop the cut and paste bullcrap.

Crassus| 4.5.12 @ 6:05PM

Clint, why don't you go to You Tube and watch some clips from RuPaul's appearances on the Morton Downey Jr. show back in 1988. If you think he's crazy now you should have seen him when he was a kid.

Bill| 4.5.12 @ 11:26AM

It'll good. then why he failed to win any primary or caucauses? Rejected. It's Romney time.

Clint| 4.5.12 @ 12:07PM

Why Are You The Race Boy Clown,Who Has Jumped In Front Of A Number Of GOP Candidates' Parades And Pretends You're Leading Their Parades.

The Tea Party Rebellion Heads To An Open Convention.

Oldefarte| 4.5.12 @ 1:23PM

See my above, CLOWN!!!!!

Bill| 4.5.12 @ 3:30PM

I'm a Catholic and Conservatism is in my DNA.

Nick| 4.5.12 @ 8:47PM

"That nigger lover President Clinton had the pen and vetoed so many good bills passed by the Gingrich-led Congress."
- Written by Bill the Bigot, in the Time for Newt to Do the Honorable Thing thread:

http://spectator.org/archives/.....ent_749403

You're a moron and a racist, Bigot Bill.
GO AWAY!

Bill| 4.5.12 @ 10:19AM

Pass the Balanced Budget amendment, and that will take care of the liberal hypocracy on taxation and regulations.

Bill| 4.5.12 @ 11:00AM

Obama's budget got 0-414 votes, none, in the House of Representative, and that tells us that how incompetent he is.

gearjammer| 4.5.12 @ 1:03PM

Obama does not consider the above margin a strong democratic majority.

Indy| 4.5.12 @ 11:41AM

"It Turns Out Warren Buffett Is A Master Of Avoiding Taxes"

kwan| 4.5.12 @ 11:48AM

Any economist no matter how far to the left he is politically knows that in the real world lower taxes produce greater remittances to the U.S. Treasury due to increased economic activity. This was proven during the Reagan Presidency. But Obama continues with his Marxist rhetoric that millionaires and billionaires are the enemy of the people and must be punished with increased taxation. Of course the "moochers" in the underclass buy into this fabrication as they believe there will be more gub-a-mint cheeeese for them once Obama strips the rich of their wealth. Right now the business community is in a holding pattern, waiting for the electorate to snap out of the dumb, dumber, and more dumber mentality that elected Obama in 2008, and vote this November to ship the community organizer back to the People's Republik of Chicago on January 20th.

Louis Jenkins| 4.5.12 @ 11:52AM

Line the entire American taxpayers up, ask the question, and see where the chips fall. Forty nine percent will say increase taxes, and 51% will say no. We need a budget, but then again the results will be the same. I wish it were that simple. We're taxed enough already, now Obama just has to admit that, yes, he will increase taxes next year. Big time. But he will only say so using political-speak. Lots of new programs awaiting their funding. The Democrats, and some Republicans, who control the Senate have no interest in forming a budget. They'd be seen for the crooks they are. The American people are seen as a fully mature chicken, ready to be plucked, and served up on a platter. Hopefully you guys have your act together. We're gonna need it.

Von Mises Jr.| 4.5.12 @ 12:16PM

If the middle class has not figured out that they are the target by now, they probably never will. The first rule for accontants is follow the money. The vast majority of wealth is with the middle class.
Subprime mortage crisis and Agenda21 "smart growth" are intended to redistribute your property to Fannie, Freddie, HUD and GMAC; and put you in government apartments. While most lost a large portion of their retirements during the busts of 1999, 2001 and 2008; the last demonstrated how the insiders such as Pelosi, Kerry and Boehner were able to make staggering gains on inside information. Silver collapsed last year from $49 to about $30 as margin rates were quietly increased by 85%. Do you think Soros and the Wall Street insiders didn't plan this and sell at the high?
Laffer wrote in 2010 how the sunset of the Bush tax breaks would cause a financial collapse in 2011. The Bush rates were extended through the end of 2012. Guess what happens in 2013 if Obama is our "Dear Leader?"

Jack London| 4.5.12 @ 2:57PM

'The vast majority of wealth is with the middle class.'

Depends what you mean by middle class. In 2007 the top 20% of Americans owned 85% of wealth.

DRed| 4.5.12 @ 4:12PM

http://www.offthechartsblog.or.....ink-again/

Damn communists are taxing us into oblivion.

Reprobate Charlatan DRedful| 4.5.12 @ 6:16PM

My name is DRedful. I provide sources. I just can't comprehend them.

* * * * * *

DRedful (2/23 @ 8:36pm):

"If you look at the data here it looks like our effective corporate tax rate is basically middle of the pack

http://stats.oecd.org/Index.aspx?DataSetCode=REV"

Reply to DRedful:

"Your link has nothing to do with the U.S. corporate tax rate.
Your link does not show the corporate tax rates of OECD nations.
The U.S. corporate tax rate is second highest among OECD nations.
Effective April 1 the U.S. corporate tax rate will be highest among OECD nations."

DRedful (2/23 @ 11:22pm):

"Well no, it doesn't show the rates, it shows how much corporations actually pay in taxes as a percentage of gdp."

Reply to DRedful:

"Your link does not show the corporate taxes paid of the U.S.
Your link does not show the corporate taxes paid of OECD nations."

DRedful (2/24 @ 4:51pm):

"Well, if you look at what American corporations pay, compared to similar countries..."

* * * * * *

DRedful (8/10 @ 10:46am):

"Here's the inaccurate part. Mr. Ferrara states that the top 1% of income earners paid 40 % of federal income taxes in 2007. He uses that to show how unfairly taxed the top 1% of earners are."

Reply to DRedful:

"You owe Ferrara an apology. He stated in 2007 the top 1% paid 40.4% of income taxes because, try to follow me here, the top 1% paid 40.4% of income taxes in 2007.
In 2007 the top 1% paid 40.42% of the nation's income taxes, while the bottom 95% paid 39.37%"

DRedful (2/4 @ 1:15pm):

"Wake me back up when you can figure out the difference between federal income taxes and total tax taxes."

Reply to DRedful:

"It is notable in the quotation provided that you stated 'federal income taxes' and not 'total tax taxes."

DRedful (2/4 @ 4:34pm):

"Wow. The article claimed that the rich paid a disproportionate share of taxes in America. Taxes. Not federal income taxes. I wasn't saying that the claim that the rich paid 40% federal income taxes was inaccurate. I'm saying that using that to prove that the rich pay a disproportionate share of taxes in America is inaccurate. Why? Because it's not true. If you earn 22% of the income and pay 23% of the taxes, by definition, you're paying a proportionate tax burden."

Reply to DRedful:

"The notable liar himself:
"Wow. The article claimed that the rich paid a disproportionate share of income taxes in America. Taxes. Not federal income taxes. I wasn't saying that the claim that the rich paid 40% of federal income taxes was inaccurate."

"Here's the inaccurate part. Mr. Ferrara states that the top 1% of income earners paid 40% of federal income taxes in 2007."

"I'm saying that using that to prove the rich pay a disproportionate share of taxes in America is inaccurate. Why? Because it's not true."

It is notable the notable liar time and again ignores:
in 2007 the top 1% paid 40.42% of federal income taxes;
in 2007 the bottom 95 % - combined - paid 39.37% of federal income taxes;
in 2007 the top 1% paid more in federal income taxes than the bottom 95% combined."

DRedful (2/4 @ 6:29pm):

"derp derp derp"

* * * * * *

DRedful (4/5 @ 3:12pm):

"www.offthechartsblog.org"

Damn communists are taxing us into oblivion."

'Off the Charts', in 'About', is an organization:

"working at the federal and state levels on fiscal policy and public programs that affect low- and moderate- income families and individuals";

and is:

"dedicated to improving government policies toward low- and middle- income Americans and ensuring that government has the resources to meet its responsibilities and address critical needs".

Too bad this organization is not working on government and fiscal policy that affects the high-income families and individuals that pay the vast majority of taxes, and are the same high-income families and individuals who create the jobs for the low- and moderate- income families and individuals.

Too bad also this organization isn't dedicated to ensuring that government meets its constitutional responsibilities, and addresses the critical needs constitutionally, of the high-income families and individuals who create the jobs for low- and moderate- income families and individuals, in addition to paying for the vast majority of the government that is dedicated to ensuring unconstitutional control, to the detriment of low- and middle- and high- income families and individuals alike, in our equality under the law nation.

Idiot.

DRed| 4.5.12 @ 7:21PM

Well said, Skip. It's hilarious to me that you still haven't figured out how to use the variables in the oecd table. Derp derp derp!

Reprobate Charlatan DRedful| 4.5.12 @ 7:31PM

You mean the variables you didn't link to, that I hadn't figured out, while noting your reply to the intellectual beating you sustained above that you're avoiding, that I haven't figured out either?

DRed| 4.5.12 @ 7:52PM

Uh, they're right on the chart I linked to. They always have been. Do you need me to hold your hand? I thought conservatives were big on personal responsibility. The real beauty is that you started your comment by mocking my inability to understand the sources I link to. Don't ever change, Skip. Well-maybe you could stop writing the same boring cut and paste crap every time. But then you'd have nothing to say.

Reprobate Charlatan DRedful| 4.5.12 @ 8:56PM

Uh, you mean the real beauty of mocking what a consistently proven liar has to say, such as:

DRedful:

"If you look at the data here it looks like our effective corporate tax rate is basically middle of the pack

http://stats.oecd.org/Index.aspx?DataSetCode=REV"

[Uh, you mean, liar consistently proven to be a liar, look at the data you provided that does not show our corporate tax rate, or the corporate tax rate of any other OECD country, while pretending for a moment it is not well known our corporate tax rate is second highest, until April 1 that is, when it is well known our corporate tax rate will not be basically middle of the pack, or even second highest, but will be the highest in the world among OECD countries, all this while ignoring for the moment you aren't a consistently proven liar, that is?]

DRedful:

"Well no, it doesn't show the rates, it shows how much corporations actually pay in taxes as a percentage of gdp"

[Uh, you mean, liar consistently proven to be a liar, the data that does not show how much our corporations actually pay in taxes, or how much any other OECD country's corporations actually pay in taxes, while pretending for a moment it is possible to compare these corporate taxes paid that are not shown to gdp to see ours is basically middle of the pack when it is well known ours is second highest until April 1 when it will be highest, while ignoring for the moment you aren't a consistently proven liar, that is?]

"Well, if you look at what American corporations pay, compared to similar countries..."

Oh, you mean the real beauty of mocking a consistently proven liar, who was proven a liar on 2/23, as is consistently the case with all the consistently proven liar's consistently proven lies, who as is consistently the case just been proven to lie on 4/5 on the very same words of the consistently proven liar that was proven to be lies on 2/23, as only a consistently proven liar could lie in proven consistent cases, proven lying consistently on 4/5 on the very same words proven to be lied on 2/23, lying, the real beauty of which is to be mocked, and mocked mercilously, in mocking of real beauty, without change, ever.

DRed| 4.5.12 @ 9:21PM

"while pretending for a moment it is possible to compare these corporate taxes paid that are not shown to gdp to see ours is basically middle of the pack"

Okay, set tax to 'corporate' and set variable to 'tax revenue as percentage of gdp'. Tell me what you see.

Figure 3 in this article has the data in picture form.

http://www.oecd.org/dataoecd/30/16/41069272.pdf

Reprobate Charlatan DRedful| 4.6.12 @ 3:59AM

Okay, liar consistently proven to be a liar,

tell the reason no one could see this link,
with tax set to 'corporate' and variable set to 'tax revenue as percentage of gdp',
on 2/23 when you posted the link,
which did not have tax set to 'corporate' and variable set to 'tax revenue as percentage of gdp',
that this real beauty mocking your inability to comprehend the sources you link to saw on 2/23,
by setting tax to 'corporate' and variable to 'tax revenue as percentage of gdp' on 2/23.