Throughout the current recession, those hurt the least have been the super rich. They are also the primary beneficiaries of the GOP tax cut deal with President Obama.
If America had a budget surplus the tax package might not be facing opposition. However, with the balance sheet nearly $14 trillion on the red, the United States budget deficit is at the center of this debate.
The Bush tax cuts, as all tax code manipulation, are a form of redistribution of wealth. Whether the discounts go to the rich or poor does not change the mechanics. The portion of the Obama tax bill compromise that applies to the rich will cost taxpayers $420 billion. Since the wealthy will be paying less, (percentage-wise) it is essentially a subsidy from the middle class and poor into the pockets of the rich.
Consensus among democrats and the American public according to a recent CBS News poll, says on the republican tax cut deal is not what the electorate wants; it’s bad for the country, will not create jobs, and will add more to the deficit than it’s worth.
Republicans have been conspicuously silent on the simplest solution to the tax cut debate, which is to pass the bill without the portion that applies to the top tax brackets.
The GOP refusal to cooperate has been called a form of hostage taking by opponents to the bill, including President Obama. Political commentators have hotly debated the pros and cons of the legislation, but few have called the bill what it actually is; a redistribution of wealth that favors multi-millionaires.
MSNBC’s Lawrence O’Donnell said, “Remember what supply-side economics is. It is the promise that by cutting taxes, the treasury is going to collect more revenue because the economy will be so wildly stimulated by cutting taxes...But by cutting these taxes the treasury is going to collect less money…”
Mr. O’Donnell’s remarks are probably the most honest, realistic words ever spoken about tax cut policy.
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