Sunday, July 31, 2011

Massive Tax Hike On Middle Class

Republicans have been cutting income taxes, corporate taxes, taxes on capital gains and special dividend income (both now taxed at 15%), and estate taxes. Revenues as a percentage of GDP are the lowest in decades. Yet we are told over and over that we have a spending problem. Well, yes, if you repeatedly cut the means, then that does make it hard to live within your means.

Republicans are refusing to reverse any of their revenue cuts, crying "No new taxes!" even though what is desperately needed is restoration of some of the old taxes.

What they are proposing is massive cuts to programs which help the poor and vulnerable, the working class, and ordinary middle class citizens. In effect, they are proposing massive tax increases on middle class America. A dollar more in health care costs is the same to someone as a dollar increase in their taxes. And those cuts to programs are what Republicans are using as the price for keeping tax cuts for millionaires and billionaires, and for keeping the huge tax deductions and subsidies for large corporations.

Republicans also refuse to fix the Medicare Prescription Drug program, which with its no negotiating clause is a big giveaway to pharmaceutical companies.

Both sides are looking at Social Security, even though changes to retirement ages and benefits will have zero impact on the national debt.

Oh, yeah, and wasn't there a jobs problem? Well, eliminating trillions in spending by the middle class should certainly help create jobs.

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