Top 5 Problems with the Tax Deal (from MoveOn)

[ProfessionalLeftist]

Problem #1: The deal is a stealth attack on Social Security.

The deal will lower the payroll tax—the tax that funds the Social Security trust. This is a trap for Democrats. Republicans have been coming after Social Security for years and this cut is the biggest threat to the vital program in decades. It will cut one-third of Social Security's funding this year alone and when we need to restore the payroll tax back to its current level, Republicans will cry "tax increases" and could gut it permanently. 1

Problem #2: For nearly one in three workers, it's a tax increase.

Nearly 50 million working Americans—including all workers making less than $20,000 per year—and millions of federal, state, and municipal workers will see their taxes go up because of the deal.2

Problem #3: The deal has not one but TWO millionaire bailouts.

In addition to extending all the Bush income tax breaks for the top 2%, the deal will slash the estate tax. If Congress did nothing, next year the estate tax would be 55% and apply to everyone inheriting $1 million or more. But the deal reduces it to 35% and only people who inherit more than $5 million will have to pay. This second bailout will give a gigantic tax giveaway to a few thousand of the richest families in the country and add hundreds of billions to the national debt.3

Problem #4: Unemployment help is insufficient and inadequate.

While the deal extends unemployment benefits for another 13 months for people currently receiving it, millions of unemployed workers who've struggled the most and been out of work more than 99 weeks—since the giant Wall Street banks wrecked the economy—will get no help at all under the deal.4 It's a gamble that there will be jobs in the next 13 months when the insurance runs out, but the tax cuts will go well beyond that. Better to just pass a stand-alone unemployment extension to help all struggling Americans.

Problem #5: Tax giveaways to the rich are a terrible way to create jobs.

Tax breaks for the rich are the least efficient way to create jobs and help the economy grow. In fact the nonpartisan Congressional Budget Office says extending all tax cuts would lower unemployment only 0.1% to 0.3% over the next year5 and that the cost of the tax deal would be $900 billion over the next five years.6

We've got to stop this deal and make sure everyone understands what's really in it. Can you share this list now?

Thanks for all you do.

–Nita, Robin, Milan, Wes, and the rest of the team

Sources:

1."Tax Cut Deal A Hidden Threat To Social Security," The Huffington Post, December 8, 2010
http://www.moveon.org/r?r=205508&id=25497-6758813-bv25cYx&t=6

2. "Obama-Republican Deal Could Mean Tax Hike For One In Three Workers," The Huffington Post, December 10, 2010
http://www.moveon.org/r?r=205509&id=25497-6758813-bv25cYx&t=7

3. "Estate tax deal: worst part of a bad tax compromise," The Christian Science Monitor, December 7, 2010
http://www.moveon.org/r?r=205510&id=25497-6758813-bv25cYx&t=8

4. "Unemployment benefits: Extension won't help '99ers'," The Christian Science Monitor, December 7, 2010
http://www.moveon.org/r?r=205511&id=25497-6758813-bv25cYx&t=9

5. "The Deal," Paul Krugman, The New York Times, December 7, 2010
http://krugman.blogs.nytimes.com/2010/12/07/the-deal/

6. "CBO score shows tax plan ups deficit $900 billion in 5 years," CNN.com, December 10, 2010
http://www.moveon.org/r?r=205512&id=25497-6758813-bv25cYx&t=10

[redirish28]

1. Problem is no one wants to hear the truth. Poor Bernie Sanders did this for

8 and 1/2 hours Friday and no one listen.

[T Wolf]

2. It's too bad that there are so few Dems in Congress who will fight for the people on this.

Going against the DINOs, the White House, and the pukes is not going to end well. Not for the nation. Not for the people. And not for the party.

I guess that makes it a win-win-win for the administration and its friends across the aisle.

[Goblinmonger]

3. Problem 3 is not just a benefit for the elite wealthy

My mom died this year. She was by no means wealthy. She and my dad (also deceased) owned almost a section of land in eastern ND (very fertile land). The land is worth over a million dollars. If you put her, or my family, in with the elite rich, something is wrong.

[T Wolf]

6. Is it slightly over one million, which means it would not be hit with much of a tax.

Or, is it worth 25 or 50 million in which case it would.

Under the Democratic plan, only the amount over one million would be taxed. The pukes and Obama (redundant, I know) now upped that to five million and lowered the rate by 50%.

I guess rich depends on where you draw the line.

[hughee99]

4. And politically, this is a deal that's being done with Dems controlling

the White House and BOTH houses of congress.

[True_Blue]

5. Throwing money at the wealthy employing Chinese Citizens isn't going to help the unemployed

I have no problem with US based businesses receiving a tax break, but I want someone in Washington to explain how throwing money at companies that are employing Chinese Citizens in China will create more American jobs.

I'm unemployed and it's extremely frustrating because I'm not seeing or hearing any solutions coming from our govt regarding unemployment. People are asking how long we need to extend unemployment and no one is getting any answers, other than telling Americans with Master degrees that they need to get off their lazy asses and go work at McDonalds. And I'm sick to death of these politicians publicly disparaging the unemployed as lazy to cover their own hopeless incompetence over the situation. There are employers openly discriminating against hiring the unemployed now and no one is addressing that. How do the politicians think that publicly calling the unemployed lazy slackers are going to encourage employers to hire them? Why are they making more deals with Asia to send more jobs overseas? I feel like the politicians just have their fingers in their ears going LA! LA! LA! I can't hear you. But next election, everyone will be JOBS JOBS JOBS.

[FLAprogressive]

7. BUT PEOPLE WILL GET UNEMPLOYMENT -- this admin. will cut off its nose to spite its face on purpose

[BlueCheese]

8. The estate tax.

I find the estate tax part to be especially offensive. Of all the things to concede on, we had to do that? Set the estate tax at a level that's lower than anything other than the zero it was this year?

The 1993 Clinton economic plan passed by two votes in the House, and a tiebreaker in the Senate. It is really hard politically to raise taxes. Yet it was never easier than this year, when simply by doing nothing, taxes would have gone back to Clinton-era levels. And we f---ed it up.