The Obama-McConnell tax "deal".... aka: 'pulling the wool over our eyes'

[seafan]

Bill Black writes at Naked Capitalism:


No, Mr. President, you did not negotiate a winning tax deal

December 11, 2010

.....

David Cay Johnston explained in his article urging the President to “call their bluff” why the Democrats held a winning hand with regard to taxes for the rich. The Republicans were in a Blazing Saddles bluff — where the sheriff takes out his gun, aims it at his head, and threatens to shoot. The Republicans’ position on taxes and unemployment was political suicide and there was no chance that they could maintain Party discipline on a joint suicide pact if Obama called their bluff. The Republicans would have had to block tax reductions for 98% of American taxpayers and thrown well over one million unemployed under the bus before Christmas — six million of them by Spring. Here’s rule one about responding to elected officials who threaten to commit suicide en masse — “make my day.” Think of what President Clinton did when the Republicans threatened to “shut down the government.” The threat to the nation of a complete shutdown of the federal government was far worse than the Republicans’ threat about taxes, yet Clinton did not hesitate to call their bluff and no one accused him of being irresponsible. Clinton discredited the Republican Party and their Blazing Saddles strategy so badly by calling their bluff that the Republicans did not dare to repeat the tactics.

The suicidal nature of the announced Republican position on taxes and unemployment explains why the Republicans were overjoyed to support so many provisions that the administration is claiming represent miraculous accomplishments. The reality (obvious to anyone that didn’t fall for the Republicans’ Blazing Saddles propaganda) was that Obama had broad Republican support for extending unemployment benefits, tax breaks for businesses, tax breaks for the 98% of taxpayers, and some form of special tax reduction for working class Americans — regardless of whether he capitulated on tax breaks for the wealthy. None of the things that the administration claims as miracles represented concessions by the Republican Party. (Some individual Republicans opposed particular provisions, but most Republicans and Democrats supported these provisions and Obama needed to pick up less than a handful of Republican votes in the Senate.) That means that the relevant comparison is not the dollar value of the provisions that the Republicans and Democrats both support, but rather the cost in terms of increased inequality and lost services caused by Obama’s unnecessary capitulation on extending Bush’s tax cuts for the wealthiest of Americans.

It is not too late for Obama to call the Republicans’ bluff, but that can only occur if House Democrats call Obama’s “take it or leave it” bluff. Obama adopted the Republicans’ Blazing Saddles bluff. Obama’s bluff is expected to work easily against Senate Democrats. We’ll see whether the House will save Obama from himself. The political class is predicting that Obama’s bluff and attacks on House Democrats will cause them to “surrender.”

Here’s a hint. When Dana Milbank writes a column stating that you (Obama) have never done anything in your life that made him proud until you (A) capitulated on the Bush tax cuts for the wealthy and (B) attacked liberals for opposing your capitulation that means you have fouled up so profoundly that you have brought joy to folks like Milbank that have never respected you and want you to fail. Here’s a further hint: the title of his article is “Obama finally stands his ground.” Milbank is either mocking you or he has perfected unintentional self-parody. The reason Democrats are criticizing you is that you failed to stand your ground on tax breaks for the wealthy. You promised to end the Bush tax cuts for the wealthy. You had the majorities to do so long ago. Your promise had overwhelming support from the American people. Even Milbank concedes that extending the Bush tax cuts for the wealthy is “dumb.”

There are more poison pills in Obama's tax "compromise":


Obama's Payroll Tax Holiday Could Unravel Social Security

Senator Bernie Sanders discussed this at length in the 8+ hours he stood on the Senate floor yesterday. Everyone should take the time to listen to this man give us the facts of this abominable deal being pushed on us. This is the type of truth that the M$M bury like a rotted corpse.


Bernie Sanders Tax Cut Filibuster, December 10, 2010

Part 1

Part 2

Part 3




And yet another poison pill in this tax "compromise":


Naked Capitalism reported this on December 7 via Reuters:

.....

Congressional Republicans appear to be quietly but methodically executing a plan that would a) avoid a federal bailout of spendthrift states and b) cripple public employee unions by pushing cash-strapped states such as California and Illinois to declare bankruptcy. This may be the biggest political battle in Washington, my Capitol Hill sources tell me, of 2011.

That’s why the most intriguing aspect of President Barack Obama’s tax deal with Republicans is what the compromise fails to include — a provision to continue the Build America Bonds program. BABs now account for more than 20 percent of new debt sold by states and local governments thanks to a federal rebate equal to 35 percent of interest costs on the bonds. The subsidy program ends on Dec. 31. And my Reuters colleagues report that a GOP congressional aide said Republicans “have a very firm line on BABS — we are not going to allow them to be included.”

In short, the lack of a BAB program would make it harder for states to borrow to cover a $140 billion budgetary shortfall next year, as estimated by the Center for Budget and Policy Priorities. The long-term numbers are even scarier. Estimates of states’ unfunded liabilities to pay for retiree benefits range from $750 billion to more than $3 trillion.

.....

But we, on the left, are not supposed to call attention to such things as these secret deals with Republicans, you see.


Instead, we on the left are scornfully scolded by this administration to sit down, STFU, and go get drug tested.




May this nightmare be over soon.


For the sake of our country, may we soon see the full restoration of leadership of the people, by the people and for the people.

[Angry Dragon]

1. Perhaps we the people should start class action suits against politicains

[Gin]

2. since corporations are people too...maybe we can

[CaliforniaPeggy]

3. A BIG K&R

This needs to be seen and heard.

:(

[jannyk]

4. k&r! n/t

[truedelphi]

5. Those who owe on the least amount of income may see a spike

If you are liable for payment of taxes on 15K, you could be seeing around a one percent tax spike.

www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9745924

[Faryn Balyncd]

6. K&R . . . . Thanks.

:hi:




:kick:

[scarletwoman]

7. K&R

[bobthedrummer]

8. .