Letting High-Income Tax Cuts Expire Is Proper Response to Nation’s Short- and Long-Term Challenges

[JohnWxy]

I asked here:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x590855

if DUers thought it was worth sending an email urging Senators to amend the budget bill passed by the House to repeal the tax cuts extension for the top income categories, that was extorted out of President Obama in Dec of last year, to save the Unemployment Benefits extension for the millions put out of work by the Republican policies.

In the interest of persuasion I offer this article by the Center for Budget and Policy Priorities on how ineffectual tax cuts for the top earners are.....


http://www.cbpp.org/cms/index.cfm?fa=view&id=3241">Letting High-Income Tax Cuts Expire Is Proper Response to Nation’s Short- and Long-Term Challenges - CBPP

Extending High-Income Tax Cuts the Least Effective Stimulus Option
Given the economy’s present weakness, some argue that now is not the time to allow the 2001 and 2003 tax cuts for high-income households to expire. But analysis in a recent CBO report decisively refutes this argument.<1> CBO examined 11 options to stimulate growth and job creation and found that extending the 2001 and 2003 tax cuts in general came in last in effectiveness. <2> CBO concluded that a job-creation tax credit, funds to help states balance their budgets with fewer cuts in services and tax increases, and extended unemployment insurance benefits would all generate more jobs and growth on a dollar-for-dollar basis.

Furthermore, CBO indicated that extending the tax cuts for high-income households in particular would rate even lower in effectiveness than extending all of the tax cuts. This is because, as CBO explained, “higher-income households … would probably save a larger fraction of their increase in after-tax income.”<3> An economy in a recession or the early stages of a recovery needs more spending, not more saving.
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HEre's the CBO's anlaysis of the Economic impact of various expenditures and tax cuts in the ARRA:

http://www.cbo.gov/ftpdocs/100xx/doc10008/03-02-Macro_Effects_of_ARRA.pdf">Estimate of the economic effects of the American Recovery and Reinvestment Act of 2009 (ARRA, Public Law 111-5) - Congressional Budget Office


http://www.cbo.gov/ftpdocs/100xx/doc10008/03-02-Macro_Effects_of_ARRA.pdf#page=5">Table 1.The Estimated Impact Of the American Recovery and Reinvestment Act of 2009 on Output and the Budgetary Costs, 2009 to 2019 - displying the page showing Transfers to Persons and Tax Cuts to Lower and Middle Income People and Tax Cuts to Higher Income People

[RUMMYisFROSTED]

1. Is it still technically a response if a generation lapses?

[txlibdem]

2. Funny how not one person in the corporate-owned media is saying this...

Gee. Really makes me wonder. ;-)

[BobbyBoring]

3. I see you got as much response here

as you did with the last thread. It calls for action and i think it's a great idea!

[JohnWxy]

4. thanks. I keeps on a-tryin' .....

it really was another DUers idea (http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x588597) but like you I thought is was a damn good one and thought it deserved more response, too.

[Bill USA]

5. thanks for your efforts. here is my soapbox "Call to Action" on Congress.org

If anybody is interested in making it one of the 'most viewed'..it's entitled "CUT THE DEFICIT $100 BILLION IN TWO YEARS - REPEAL TAX CUTS FOR THE HIGHEST INCOME BRACKETS". If enough people click to read it, it can go into the 'most viewed' category and be seen by more people. Right now it's under the 'most recent' posts.



http://www.congress.org/



.......Here is Bernie Sanders (VT) contact page: http://sanders.senate.gov/contact/contact.cfm .....He is one senator who would propose an amendment to repeal Tax Cuts - to the Budget bill passed by the House and being considered by the Senate.

The form on this page allows messages from those outside his state. (please don't ask for a reply, though)

[Recoverin_Republican]

6. I went over to Congress.org and clicked on your soapbox "call to action" several times to give it

more "votes". I already my sent email to my senators but I just used the contact page to Bernie Sanders to send him a message too. I don't believe in "lieing down and playing dead" ...either.

[Fuddnik]

7. Kick and Rec!

And done.

[MasonJar]

8. Be specific. What can we do? Obama should not have extended these

tax breaks. They are not a stimulus. That is stupid. Most of the wealthy do not mind paying their fair share. Warren Buffet is one. This is a Koch Brothers type attempt by the right wing to destroy our democracy. What I can't figure out is what they get our of making the middle class disappear. The economy is based on what people buy.

[JohnWxy]

9. Be specific?????? I think what I asked was clear. I even gave a sample email at the link.

"I asked here..

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x590855

if DUers thought it was worth sending an email urging Senators to amend the budget bill passed by the House to repeal the tax cuts extension for the top income categories..."
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At the link I even included a sample email.. (that is not specific enough?)

.... In my OP I stated the Republicans had Obama in a perfect position to extort those tax cuts out of him. He obviously could not let the the Republicans kill the unemployment extension bill. So he had to respect their threats to kill the unemployment extension and give in to their demands for further aid to those who can get by without it.

But there were those in Congress who voted (symbolically) against the deal.


I guess you can lead a horse to water but you can't make him ....READ.

[hay rick]

10. I wrote to them before the vote.

My letter to my Senators:

The Obama-McConnell compromise proposal is catastrophically flawed.

The worst element is the payroll "tax holiday" which is obviously intended as an assault on Social Security. A year from now, restoring normal contributions will be attacked as a tax hike. The $120 billion stimulus effect (actually only $60 billion from current levels when you deduct Making Work Pay which it replaces) is simply not worth it. Any "compromise" which includes this element should be opposed on that basis alone.

Obama's response to the "hostage" situation on middle class tax cuts and unemployment benefit extensions is to offer the kidnappers yet another hostage to strengthen their future ransom demands.

Eliminating the payroll tax holiday entirely still leaves a very bad bill which should be opposed. We can not afford to be handing the extremely rich money they don't need and that we can't afford to spend on them. The real class warfare issue here is the increased share of income that the richest 1% have annexed over the last 30 years or so. In 1971, the top 1% received about 8% of all income, and by 2007, that number had increased to 23%. Meanwhile, since 1999, median household income has gone DOWN. Among other reforms, we need a vastly more progressive tax system as the first step in correcting this obscene and poisonous imbalance.

The top estate tax rates need to be increased to prevent the astonishing concentration of ownership of financial assets from turning our country into a hereditary aristocracy. The floor for collecting such taxes is a relatively minor issue as the real money (and potential for abuse) is highly concentrated at the very top.

Finally, the Build America Bonds are needed now more than ever and their inclusion would considerably improve any compromise.
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One of my Senators (Lautenberg) voted against the bill and one (Menendez) voted for the bill. My follow-up letter to Menendez:

I am disappointed on your vote in favor of extending tax cuts for the rich and the payroll tax holiday Trojan horse attack on Social Security.

I actually worked on your behalf in your last election. You are a bitter disappointment. I will vote for your Republican opponent before I vote for you next time. If I'm going to be represented by a Republican I at least want one who is honest enough to admit it.

Oops, I almost forgot. Fuck you, you little turd.
_________

I posted both letters here and the thread with the follow up letter to Menendez was locked for "advocating voting for a Republican." That was nonsense, of course, as what I was obviously advocating was that Democrats act like Democrats.

I don't think we can place too much emphasis on the issue of progressive taxation. The alternative to raising taxes on the rich is a continued decline in living standards for the majority of Americans.