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Wed Dec 19, 2012, 11:59 AM

the tax side of Obama's terrible, horrible, no good, very bad deal

First, a caveat, I cannot be sure that the proposals of today are the same as the proposals of 2010. They have many layers, these proposals do.

But, inevitably, keeping the Bush tax cuts for the first $250,000 in income means that those with more than $250,000 in income will still get tax cuts on that first portion of money, and under that plan somebody with $2 million in income gets bigger tax cuts than somebody with just $70,000 in income, especially if dividends are STILL given favorable treatment.

According to Citizens for Tax Justice (CTJ), that meant that the top 1% got $40 billion worth of tax cuts per year. The top 4% got another $40 billion and the rest of the top 20% got another $80 billion. The top 20% gets $160 billion and the bottom 40% gets only $42 billion in Obama's original plan. The 2010 plan.

I still think that plan is awful, to favor the top 20% so much over the bottom 40%.

This proposal may have changed from 2010, I don't have that information. But it appears to not have changed, according to CTJ. They show Obama's current proposal bringing in $104 billion in revenue per year, which is about what they showed for the 2010 proposal.

So I still think the $250,000 threshhold favors the rich too much and would like to see ALL the Bush tax cuts expire and have Democrats propose tax cuts that would not favor the rich.

Obama has now proposed, according to many news sources, a $400,000 threshhold. Which means another $16 billion in tax cuts per year - the whole $16 billion going to people with incomes over $250,000. The total over ten years is $222 billion in EXTRA tax cuts going to those with incomes over $250,000. The bottom 20% only get $14 billion, but what the heck, let's offer the top 2% another $16 billion on top of the $40 billion plus they would get from the original deal.

Boehner's counter-offer, which is very likely to pass the House, gives another $33 billion a year in tax cuts - all of it going to those with income over $400,000 - the Republican base, the haves and the have-mores. Yep, Republicans are proposing another $454 billion in tax cuts on top of the $3.2 trillion that Obama is proposing, because they are very worried about the deficit. And they insist that $3.7 trillion in tax cuts (with about a trillion of that going to the richest 1%) have nothing to do with the debt.

It's important though, if you have a Democratic Senator, that they hear from you to vote AGAINST Boehner's deal.

links

for the original deal http://www.ctj.org/pdf/taxcompromise2010.pdf

for the new proposals http://www.ctj.org/pdf/latestfiscalcliff.pdf

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Reply the tax side of Obama's terrible, horrible, no good, very bad deal (Original post)
hfojvt Dec 2012 OP
hfojvt Dec 2012 #1

Response to hfojvt (Original post)

Wed Dec 19, 2012, 01:18 PM

1. so the chained CPI is supposed to produce $112 billion in savings?

And Obama proposes giving $222 billion (over 10 years) to those making over $250,000 a year?

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