Tag Archives: taxes

Here’s what Republicans are calling “tax increases” (implying *everyone’s* taxes)

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How much should Boehner’s personal opinion on any matter count after the election?  The Republicans in the House and Senate are protecting the rich and powerful from paying more of their fair share by refusing to close tax loopholes used only by the very wealthy, while the paycheck-to-paycheck conservative base rubes believe they’re the ones being protected from a tax increase! Fox programming at its finest.

Steve Benen:

This sentence… “Let’s make it clear, the president got his tax hike on January 1st. The discussion about revenue, in my view, is over.”

…makes exactly as much sense as this sentence: “Let’s make it clear, Republicans got their spending cuts in 2011. The discussion about spending cuts, in my view, is over.”

Below are some of the tax breaks that Obama has targeted for closure in the past and the ones that are in the Senate bill.

OBAMA TARGETS

  • CARRIED INTEREST. Preferential treatment for private equity, venture capital and other financial managers that lets them pay the 20 percent capital gains rate on much of their income, instead of the higher individual income tax rate on wages.
  • OIL AND GAS SUBSIDIES. Energy sector tax breaks including the oil and gas well-depletion allowance; the domestic manufacturing deduction on oil and gas, and expensing of intangible drilling costs.
  • LAST IN, FIRST OUT (LIFO) ACCOUNTING. An accounting technique used in some industries, especially oil and gas. Companies say this change would force them to revalue old inventory to higher prices.
  • PROFIT DEFERRAL. A deduction for interest expenses on foreign earnings for deferred taxes.
  • FOREIGN TAX CREDIT POOLING. A loophole that lets companies claim more in tax credits than would be paid in U.S. taxes by altering which of their foreign units pay out dividends.
  • INTANGIBLE PROPERTY. A tax break that allows U.S. companies to shelter overseas profits derived from intangible property, such as royalties from drug patents.
  • CORPORATE JETS. A tax break used by corporate jet owners to depreciate fleets.
  • MINIMUM OVERSEAS PROFITS TAX. A minimum tax on overseas profits and using the revenues to help companies invest in the United States.

DEMOCRATS’ SENATE BILL

  • BUFFETT RULE. Named after billionaire investor Warren Buffett, a new 30 percent minimum tax would be applied on household adjusted gross income, phased in between incomes of $1 million to $5 million.
  • OIL FROM TAR SANDS. Oil derived from tar sands would be added to a list of petroleum products that pay into a liability trust fund to help clean up after oil spills.
  • DEDUCTION FOR MOVING OVERSEAS. This provision would end the ability of companies to take tax deductions for costs associated with moving plants and jobs overseas.

…

Congressional leaders went to the White House on Friday in a last-ditch effort to avert the automatic “sequester” budget cuts that will soon go into effect. After the meeting, Republican leaders Mitch McConnell (R-KY) and John Boehner (R-OH) emerged to reemphasize that the GOP will not consider any new revenues in a deal to avert the sequester.

Boehner said, “the discussion about revenue, in my view, is over.” And McConnell added, “I want to make clear that any solutions will be done through the regular order, with input from both sides of the aisle in public debate…I will not be part of any back-room deal and I will absolutely not agree to increase taxes.”

As the Washington Post’s Greg Sargent noted, this position is absurd, and akin to Democrats demanding that 100 percent of future deficit reduction be achieved through tax hikes. As this chart shows, nearly three-quarters of deficit reduction that has been achieved since 2011 has been through spending cuts:

[...] And at the end of the day, all of the deficit reduction talk ignores the fact that the problem with government spending at the moment is that it is too low, not too high.

…

Barbara Morrill: During President Obama’s press conference on Friday morning, the most eye roll inducing moment had to be when, immediately after he had given an lengthy answer outlining the $2.5 trillion cuts already made to the deficit, the proposals he has put forth over the past two years and his willingness to reach a balanced deal with the Republican Party—who have rejected outright any sort of compromise—a member of the brain trust we call the White House press corps said:

It sounds like you’re saying that this is a Republican problem and not one that you bear any responsibility for.

Well, sure. That’s what it might sound like if you had your head up your ass. But instead of giving that obvious response, the president went with:

THE PRESIDENT: Well, Julie, give me an example of what I might do.

Q: I’m just trying to clarify your statement.

THE PRESIDENT: Well, no, but I’m trying to clarify the question. What I’m suggesting is, I’ve put forward a plan that calls for serious spending cuts, serious entitlement reforms, goes right at the problem that is at the heart of our long-term deficit problem. I’ve offered negotiations around that kind of balanced approach. And so far, we’ve gotten rebuffed because what Speaker Boehner and the Republicans have said is, we cannot do any revenue, we can’t do a dime’s worth of revenue.

And that’s when crickets invaded the room. Not a peep out of ‘em.

…

According to Boehner, the only available solution to a problem he helped create is one in which his side gets 100% of what it wants, predicated on the assumption that the massive spending cuts agreed to in 2011 have escaped Republicans’ memories altogether. At this point, most Americans want a compromise. Most Democrats want and have already proposed a compromise. But Boehner wants everyone to know there will be no compromise, and there’s nothing the president can say or do to change his mind. I’ll now look forward to pundits everywhere telling me how “both sides” are to blame.

24-hour warning: By the way, red states take in more federal money than they pay in taxes

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Paul Begala thinks it’s a shame that sequestration cuts can’t be limited to states which take in more federal money than they pay in taxes and are represented by politicians who refuse to pay for the spending that their constituents demand (and have come to expect):

“This could be fun. Oklahoma so hates Obama’s big spending that every single county in the state voted for Mitt Romney. Oklahoma has twice the percentage of federal employees than the U.S. average, and Okies get $1.35 back from Washington for each dollar they pay in taxes. So close the massive FAA center in Oklahoma City. Move it to Nancy Pelosi’s San Francisco district, where they love big government. Two years ago I made a similar argument about Kentucky, calling on Republican Sens. Mitch McConnell and Rand Paul to put the Bluegrass State in detox for its addiction to local pork. No such luck. But perhaps the principle can apply to the sequester: enforce it only in states whose elected representatives won’t support the taxes needed to fund the spending they want.” — A pox on one of their houses

Some facts:

Mother Jones: Even as Republicans gripe about deficit spending, their states get 30 cents more federal spending per tax dollar than their Democratic neighbors:

It’s no secret: The federal budget is expanding faster than tax revenues, a trend that’s been fueled by the rapid growth of entitlement programs and exacerbated by the recession. As a recent New York Times article documents, even as fiscally conservative lawmakers complain about deficit spending, their constituents don’t want to give up the Social Security checks, Medicare benefits, and earned income tax credits that provide a safety net for the struggling middle class.

This gap between political perception and fiscal reality is also reflected in the distribution of tax dollars at the state level: Most politically “red” states are financially in the red when it comes to how much money they receive from Washington compared with what their residents pay in taxes.

A look at 2010 Census and IRS data reveals that the 50 states and the District of Columbia, on average, received $1.29 in federal spending for every federal tax dollar they paid. That means that some states are getting a lot more than they put in, and vice versa. The states that contributed more in taxes than they got back in spending were more likely to have voted for Obama in 2008 and were more likely to be largely urban. (There are some clear exceptions: For instance, New Mexico, a rural, Democratic state, gets more federal money per tax dollar than any other state.)

Added to that is “the world’s least surprising chart” from Brad Plummer: 

A new survey from the Pew Research Center finds that most Americans like the idea of cutting federal spending in the abstract — they just can’t agree on any specific areas they’d actually like to cut…

[...] Foreign aid is far and away the most popular suggestion for the chopping block, but even here, it’s a close call — 48 percent of respondents said cut it, 49 percent said keep it the same or increase it. (Foreign aid makes up less than 1 percent of the federal budget.) In no other spending area is there majority support for cuts.

The tide has turned… and it’s turned away from career war profiteers in Congress:

Think Progress: A new poll released by the Hill newspaper has found that more voters favor slashing military spending versus cutting spending on domestic programs like Medicare and Social Security in order to reduce the debt and deficit.

Voters are tired of funding the GOP’s Forever Wars and think there should be spending cuts — but they think the cuts should be to all those other programs and services they personally don’t like or use (like foreign aid — only 1% of the budget). And while everyone in the country continues to subsidize the red states’ appetite for federal cheese, red state conservatives will continue to tell themselves that they deserve more federal cheese than blue states (or that it’s not federal cheese – it’s freedom cheese!). So we’ll see how long Teapublicans can hold out on their belief that only Democratic states and Democrats will be ‘hurt’ by the sequester.


Source: questionall

Want to see how much your state will lose with sequestration cuts? Go here.

Taxes are not *your* money. Get. Over. It.

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“Oh please. Taxes are not *your* money. If people could give up the idea that it’s THEIR money being pried out of their hands, rather than just another bill, there’d be a lot less whining. You want lights, you pay the electric company. You want a place to live, you pay the bank or landlord. You want food, you pay the grocery store. You want to live in a civilized society, you pay taxes. Get. Over. It.”

— Comment of the Day: Paying For a More Civilized Society (via peekadora)

Labor Day: Workers (and the rest of us) Built That

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We Built That. I don’t think that means what Republicans think that means.

“There is nobody in this country who got rich on his own. Nobody. You built a factory out there – good for you. But I want to be clear:

You moved your goods to market on the roads the rest of us paid for.

You hired workers the rest of us paid to educate.

You were safe in your factory because of police forces and fire forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory…

Now look. You built a factory and it turned into something terrific or a great idea – God Bless! Keep a Big Hunk of it. But part of the underlying social contract is you take a hunk of that and pay it forward for the next kid who comes along.”

— Elizabeth Warren (via: questionall)

Mitt Romney’s bid to become liar-in-chief

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“When challenged about an untruthful statement, Romney’s tactic is to deny he said it – lie trumping lie.”

Michael Cohen summarizes the lies which Romney has been repeatedly called out for, yet he continues to use:

President Obama:

  • “My personal favorite in Romney’s cavalcade of untruths is his repeated assertion that President Obama has apologized for America. [...] President Obama never went around the world and apologized for America – and yet, even after multiple news organizations have pointed out this is a “pants on fire” lie, Romney keeps making it. Indeed, the “Obama apology tour”, along with the president bowing down to the King of Saudi Arabia, are practically the lodestars of the GOP’s criticism of Obama’s foreign policy performance (the Saudi thing isn’t true either).”

The stimulus / private-sector / public-sector jobs:

  • “According to Romney, “that stimulus didn’t put more private-sector people to work.” While one can quibble over whether the stimulus went far enough, the idea that it didn’t create private-sector jobs has no relationship to reality. According to the Congressional Budget Office, the stimulus bill created more than 3m jobs – a view shared by 80% of economists polled by the Chicago Booth School of Business (only 4% disagree).”
  • “Romney also likes to argue that the stimulus didn’t help private-sector job growth, but rather helped preserve government jobs. In fact, the Obama years have been witness to massive cuts in government employment. While the private sector is not necessarily “doing fine”, as Obama said in a recent White House press conference, it’s doing a heck of a lot better than the public sector.”

Taxes:

Auto bailout:

Obamacare / Affordable Care Act:

  • “Then, there is the recent Romney nugget that the Obama administration passed Obamacare with the full knowledge that it “would slow down the economic recovery in this country” and that the White House “knew that before they passed it”. It’s an argument so clearly spun from whole cloth that according to Jonathan Chait, the acerbic political columnist for New York Magazine, Romney is “Just Making Stuff Up Now”.”
  • “Also of Obamacare, Romney has said that it will lead to the government taking over 50% of the economy (not true) – its true cost can’t be computed (that’s why we have a Congressional Budget Office in the United States); that it will create to “a massive European-style entitlement” (many liberals wish this were true, but alas, it is not); and that it will lead to a government-run healthcare system (a lie so pervasive that it’s practically become shorthand for Republicans – yet it too, like the infamous made-up death panels of the health care debate, is simply not accurate).”

Why does Romney lie? Cohen explains: “The lying from the Romney campaign is so out-of-control that Steve Benen, a blogger and producer for the Rachel Maddow show compiles a weekly list of “Mitt’s Mendacity” that is chockfull of new untruths. [...] Romney has figured out a loophole – one can lie over and over, and those lies quickly become part of the political narrative, practically immune to “fact-checking”. Ironically, the more Romney lies, the harder it then becomes to correct the record. Even if an enterprising reporter can knock down two or three falsehoods, there are still so many more that slip past. [...] As… Steve Benen told me: ‘Romney gets away with it because he and his team realize contemporary political journalism isn’t equipped to deal with a candidate who lies this much, about so many topics, so often.’“

“Quite simply, the United States has never been witness to a presidential candidate, in modern American history, who lies as frequently, as flagrantly and as brazenly as Mitt Romney.”

Romney’s “Under the Bus” Tour heads to Michigan

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The last stop for Mitt Romney’s bus tour is his home state of Michigan. But don’t expect a happy homecoming: In addition to arguing that we should “let Detroit go bankrupt,” the policies that Romney is proposing would cut student aid for 337,000 students and jobs for 9,900 teachers. And 510,000 Michigan families would see their taxes go up by an average of $900.

Send this postcard to your friends to tell them what Michigan already knows: Romney economics would be a disaster for our country.

via: demnewswire

Morning Bunker Report: TGIF 5.4.2012

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—————————–—WHAT THE REPUBLICAN PARTY STANDS FOR TODAY

PAUL KRUGMAN fired back at Rep. Paul Ryan (R-WI) after the influential Republican laughed off the New York Times columnist’s criticisms by saying, “I’ve always figured I’ve got three certainties in my life: Death, taxes and attacks from Paul Krugman.” In an exclusive interview following the release of his new book End This Depression Now!, Krugman told TPM, “That’s not a substantive remark. I’ve never attacked him just for nothing in particular. I’ve gone after his arithmetic and said it doesn’t add up at all. And he has never offered a response to that. All he does is make scary noises about the deficit, with mood music, with organ music in the background about how ominous it is, and then propose a plan that would in fact increase the deficit.” “So if he wants to joke about it, that’s fine, that’s his right. But he has not actually offered any response at all to my criticisms,” added Krugman, a relentless critic of both Ryan and the journalists who lionize him as a deficit hawk. – TPM

MITT ROMNEY’S pro-America “Made in China” flag pins — Mitt told a story about the “We Stand United” American flag pins he commissioned for the [2002 Salt Lake City Olympic Games], which took place just months after the terror attacks on 9/11. Romney touted his creation of the pins as a means to explain how he hopes to bring Americans together. [...] Complicating Romney’s patriotic message is the fact that the pins were made in China, according to a website run by the Utah state government’s culture department… [...] Meanwhile, Lynn Sweet at the Chicago Sun-Times notes that a conference call hosted by the Republican National Committee (RNC) yesterday attacking President Obama for “high unemployment” was hosted by a firm in The Philippines (apparently a subcontractor of Verizon, whom the RNC used). – Mitt Romney Commissioned Pro-America Pins, Made In China

(VIDEO) RICK SANTORUM’S own words on Mitt Romney: “’If Mitt Romney’s an economic heavyweight, we’re in trouble.’ Senator Santorum, We Couldn’t Agree More,” the DNC says in a new video:

…
NEWT GINGRICH made sure to single out his chief benefactor during his concession speech Wednesday, Sheldon and Miriam Adelson: Yes, we’re through the looking glass here. The Adelsons spent $25 million on Gingrich’s campaign, and so I suppose a “thank you” is in order. But that’s the problem. Imagine the “thank you” if Gingrich had won the nomination and then was elected president. — Bob Cesca

THE RON PAUL insurrection in Tampa – The McCain camp was forced to fight off an insurrection on the 2008 convention floor from delegates supporting Ron Paul in what was at the time a very underreported story. It looks like the Paulites are burrowing themselves in deeply this time around, too, controlling more delegates than he “deserves” by taking advantage of the byzantine delegate-nominating process. — TPM

MITT AND MRS. MITT meet the wingnuts, allow their rings to be kissed: The attendees came from numerous conservative sites and right-of-center publications, including National Review, Daily Caller, American Spectator,Washington Examiner, Human Events, RedState, Right Wing News, Powerline, Townhall, Ace of Spades, RiehlWorldView, White House Dossier and PJ Media. RNC chairman Reince Preibus also attended. — HuffPo

PRESIDENT OBAMA / DEMOCRATS————————————————————

SWIFTBOATING OBAMA — Can Obama be swift boated? That’s the idea behind this attack ad from Veterans for a Strong America, which slams the president for taking too much credit for Osama bin Laden’s death. The group’s founder tells Mother Jones’ Adam Weinstein that he’s recruiting Navy SEALs to openly criticize Obama: “We’re gonna be rolling some of those folks out soon.” Want to know who’s funding the group? Sorry, it’s a 501(c)4, so it doesn’t have to reveal its donors or how much money it has. – Mother Jones

PAYING TAXES is, in fact, patriotic – It’s un-fucking-American is what it is. I don’t want you to apologize for being rich; I want you to acknowledge that in America, we all should have to pay our fair share. That our civics classes never taught us that being American means that—sorry, kiddies—you’re on your own. That those who have received much must be obligated to pay—not to give, not to “cut a check and shut up,” in Governor Christie’s words, but to pay—in the same proportion. That’s called stepping up and not whining about it. That’s called patriotism, a word the Tea Partiers love to throw around as long as it doesn’t cost their beloved rich folks any money. — Stephen King

  • King… regularly lands on Forbes’ highest-paid authors list; in 2010, he was at No. 3. His net worth is estimated to be as much as $400 million — that’s huge for a writer but small change when it comes to big finance. Warren Buffett, another tax-the-rich advocate, is worth about $4.4 billion.
  • Rich Americans renouncing U.S. citizenship rose sevenfold since UBS AG (UBSN) whistle-blower Bradley Birkenfeld triggered a crackdown on tax evasion four years ago. About 1,780 expatriates gave up their nationality at U.S. embassies last year, up from 235 in 2008, according to Andy Sundberg, secretary of Geneva’s Overseas American Academy… – Bloomberg

WHOEVER WANTED to let Detroit go bankrupt must be pretty embarrassed by this news: GM (GM) posted a profit of $1 billion in the first quarter, beating Wall Street expectations on strong demand in its key North American market. GM also said the U.S. economy was improving and it expected its core North American results in the second and third quarters to largely match the first quarter due to scheduled downtime at its large truck plants. – Daily Kos

ELEVEN DEMOCRATIC state party chairs are pushing to include support for gay marriage in the 2012 national Democratic platform.  – TPM

OBAMA’S BELOW-THE-RADAR push builds support for healthcare reform law: “The Obama administration is employing an aggressive ground game to build support for its controversial healthcare law that often reaches beyond the Beltway.” – The Hill

NEVER FORGET: President Obama did something Donald Rumsfeld would not – Donald Rumsfeld now says the raid to nab Osama bin Laden was not a tough call, but five years ago Rumsfeld pulled the plug at the last minute on a Navy Seal raid against high-value al Qaeda targets. — TPM

Mitt Romney most certainly did NOT give away 42% of his income to charity

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Wow, Mitt Romney gave a HUGE amount to charity, didn’t he? NO? You mean the media lied to us again?

Damned liberal media! Oh, wait a minute…

Mitt Romney did not give away 42% of his income to charity, he gave 19.2% of adjusted gross income to charity. Jennifer Rubin is a right-wing propagandist and the Washington Post should fire her for this latest example of her dishonesty.

And another thing: The Obamas gave 14.2% of their income before tax deductions and exemptions to charity. As a commenter points out, “[The Obamas] shouldn’t be giving away [nearly] as big a percentage to charity as Romney,” given that the Obamas make much less money.

via: ryking

While you’re doing the math on those percentages above, remember that Romney makes 12 times what President Obama makes and paid HALF of Obama’s tax rate.

SOTU tonight!

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reuters:

President Barack Obama will pitch new initiatives on jobs, taxes and housing in an election-year State of the Union address on Tuesday, making a sweeping case for a second term despite the slow U.S. economic recovery and high jobless rate.

Read: Obama to make pitch for second term in State of the Union address

I wonder if he’ll remark on Romney’s returns? Just the other day, Romney had to admit on RightWingNut radio that the economy was getting so much better under Obama:

INGRAHAM: You’ve also noted that there are signs of improvement on the horizon in the economy. How do you answer the president’s argument that the economy is getting better in a general election campaign if you yourself are saying it’s getting better?

ROMNEY: Well, of course it’s getting better. The economy always gets better after a recession, there is always a recovery. […]

INGRAHAM: Isn’t it a hard argument to make if you’re saying, like, OK, he inherited this recession, he took a bunch of steps to try to turn the economy around, and now, we’re seeing more jobs, but vote against him anyway? Isn’t that a hard argument to make? Is that a stark enough contrast?

ROMNEY: Have you got a better one, Laura? It just happens to be the truth.

Heh.

The yearly cost of stationing one soldier in Iraq could feed 60 American families

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From: 15 Facts About Military Spending That Will Blow Your Mind

  1. America spends more on its military than THE NEXT 15 COUNTRIES COMBINED
  2. The total known land area occupied by U.S. bases and facilities is 15,654 square miles — bigger than D.C., Massachusetts, and New Jersey combined.
  3. By 2033 the U.S. will be paying $59 billion a year to its veterans injured in the wars
  4. In 2007, the amount of money labeled ‘wasted’ or ‘lost’ in Iraq — $11 billion — could pay 220,000 teachers salaries
  5. Defense spending is higher today than at any time since the height of World War II
  6. America’s defense spending doubled in the same period that its economy shrunk from 32 to 23 percent of global output*
  7. (see title)
  8. Each day in Afghanistan costs the government more than it did to build the entire Pentagon
  9. In 2008, the Pentagon spent more money every five seconds in Iraq than the average American earned in a year
  10. The pentagon budget consumes 80% of individual income tax revenue
  11. Two decades after the collapse of the Soviet Union, the Defense Department still has more than 40 generals, admirals or civilian equivalents based in Europe
  12. The amount the government has spent compensating radiation victims of nuclear testing ($1.5 billion) could fully educate 13,000 American kids
  13. The Pentagon spends more on war than all 50 states combined spend on health, education, welfare, and safety
  14. The U.S. has 5% of the world’s population — but almost 50% of the world’s total military expenditure
  15. So where do they get all that money?

This is why we can’t have nice things.

A message to the Republican voting base

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Your ADD hurts us all.

William Saletan thinks the GOP candidates waged class warfare during the debate last night, with their many protests about over-taxing the proletariat. He says:

I’m not suggesting, of course, that the Republicans are actually Marxists. They’re just speaking up for compassion, social mobility, and progressive taxation. There’s nothing wrong with that. What’s wrong is crying “class warfare” when Obama does the same thing.

Saletan must not be aware of the proud tradition of double-standards inherent with the GOP. Whatever they do / say is fine. Different rules for Democrats though.

FIVE FACTS from Tax Policy Center — #1: 100,000 millionaires pay lower taxes than YOU

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…if you’re an average American. From the Center for American Progress:

  1. More than 100,000 millionaires pay lower taxes than the average American.
  2. Forty percent of millionaires pay a lower tax rate than 3.4 million Americans who earn between $40,000 and $50,000.
  3. One hundred thousand millionaires pay a lower tax rate than 2.8 million Americans who earn only $10,000 to $20,000.
  4. Forty-six million Americans who earn less than $50,000 annually pay a higher tax rate than 43,000 millionaires.
  5. More than 43 million Americans who earn less than $100,000 pay a higher tax rate than 100,000 millionaires.

Read it all…

http://www.americanprogress.org/issues/2011/09/img/millionaire_facts.jpg

And just a reminder:

“The richest 5 percent of households obtained roughly 82 percent of all the nation’s gains in wealth between 1983 and 2009. The bottom 60 percent of households actually had less wealth in 2009 than in 1983, meaning they did not participate at all in the growth of wealth over this period.” - Lawrence Mishel

So, clearly, the wealthy need to have the tax cuts extended and the rest of us should gladly agree to more spending cuts to balance the deficit. The wealthy only gobbled up 82% of the nation’s wealth? That leaves a lot of wealth out there that they haven’t deposited in their bank accounts. Yet.

American companies that aren’t investing in the U.S. are unpatriotic — Jim Hoffa

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“I think the president should challenge the patriotism of these American corporations that are sitting on the sidelines. The problem in America isn’t that we don’t have enough money. We’ve got more money than any other country in the world. The problem is American businesses not spending it and not getting it in the game.” — Jim Hoffa, president of the International Brotherhood of Teamsters, blasting American companies who are not spending their capital in the U.S. as “unpatriotic”

Hoffa says that as if American businesses would be shamed by such a label. We’re teetering on the verge of Corporatism, and the only allegiance being pledged by American (multinational) companies is to their CEOs and their stockholders. There are no more ‘countries.’ There’s no such thing as patriotism anymore.

Related:

Most people understand very little about how taxes work (or the meaning of ‘socialism’)

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