GOP tax cut plan: Redistribution of wealth to the rich?

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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Pressure against Bush tax cuts for wealthy gaining support on Capitol Hill

President Obama’s tax cut deal with republican leaders has riled democratic lawmakers on Capitol Hill. While democrats like Vermont Congressman Peter Welch have been publically vocal on their objections to the budget-busting compromise, Republicans have remained silent on the plan which will add $900 billion to the federal deficit.

“The deal to extend the Bush-era tax cuts for two years includes a bevy of additional credits and deductions that will reduce the burden on nearly all households. But the tax benefits will flow most heavily to the highest earners, just as the original cuts did when they were passed in 2001 and 2003. At least a quarter of the tax savings will go to the wealthiest 1 percent of the population,” according to the New York Times.

Independent Senator Bernie Sanders told MSNBC that the GOP tax plan will not create jobs and republicans will use the debt added to the federal deficit as an excuse to go after Social Security and Medicare.

"For a Democratic president, Democratic House, Democratic Senate, to be following the Bush economic philosophy of tax breaks for millionaires, billionaires is absolutely wrong public policy, absolutely wrong politically, and I gotta tell you, I will do whatever I can to see that 60 votes are not acquired to pass this legislation.”

Sanders added, "Millionaires and billionaires do not need huge tax deductions, that's the simple truth," according to the Huffington Post.  "If we're serious about creating jobs in this country, which should be our main priority, that's the worst way to do it. Much better to take that money, invest in our roads, bridges, railroad systems, infrastructure -- you create jobs doing that."

Welch and Sanders are bringing attention to the flaws of the republican deal to extend the Bush tax cuts to the wealthy to the American people in hopes of applying public pressure to defeat the legislation.

Donald Trump for president on MSNBC's Morning Joe

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Donald Trump gave MSNBC Morning Joe hosts, Mika Brzezinski and Joe Scarborough some straight talk about what he sees as America’s biggest problems and his possible bid for the White House in 2012. Trump cited agreements with OPEC and China as issues that are working against economic progress in the U.S. He said “We don’t make anything here anymore. Why is that?” Trump also said that Americans make better products than the ones imported from China and that there is no excuse for us to be giving away our jobs. “I buy a lot of products from China – it’s always breaking,” Trump said.

With some changes to our trade agreements with China, Trump was also confident that our budget deficit problems would be solved.

On the energy front, Trump was critical of OPEC. He said, “We have to break OPEC.” Then in the straight-talking form he is famous for, he added, “Hey look, half of these people are there because of us. We created OPEC by protecting them so, like, Saddam Hussein and others didn’t take them over a long time ago; like Kuwait, who are big investors outside of the United States. They don’t want to invest in the United States because their return isn’t good enough in the United States. And yet we handed the country back to them; didn’t ask for payment. We put out all the fires of the oil wells and Kuwait is out there saying, no I’d rather invest in China because the return on investment is better; OK, Give me a break.”

 

“What happens with OPEC is an all time classic. These eleven men sit around a table and they fix the price of oil.” He added, “The way we run this country is an absolute disgrace.” We talk about things, “but nothing ever gets done.”

 

Trump said OPEC and China are sucking the blood out of this country. “Did you ever notice that when things are going good in this country oil prices go up?... we have to do something about OPEC, and we have to do something about China and other countries.”

 

As far as a run for the presidency in 2012, Trump said he is quite happy running is Real Estate Empire, but added, “I’d run as a Republican.” When pressed by Brzezinski for details, Trump said he’s considering running because “There’s a frustration on how stupidly our country is run.” 

 

It sounds like Trump feels he could do a better job at running the country. There are not many Americans who would disagree that the current leadership, both Democrats and Republicans, seem to be good at everything but getting the job done.

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Republican reality: GOP proposals will make deficit much worse

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 Perception is everything, and what the newly empowered Republicans are counting on is having the public believe that they are on the road to getting America’s deficit house in order. However, GOP proposals will, in fact, make the deficit much worse.

On MSNBC on Tuesday, Rachel Maddow said, “Think about the distance between what Republicans say they are doing and what they are actually proposing. All day bragging about how much they want to cut the deficit while simultaneously proposing adding to the deficit $700 billion (tax cuts for the rich), plus $138 billion (repeal health care reform), plus $14 billion (defense spending), plus $19 billion (cap and trade). All added to the deficit as they proclaim that they want to cut the deficit. But because they are banking on the press only writing down what they say they’re going to do rather than what they’re actually proposing.”

Maddow made another valid point. She said if you just repeat what the Republicans say, “that’s called publicizing.” Telling the public “what they actually do, what they are proposing in terms of policy that is reporting.”

It’s hard to ignore that kind of logic. Perhaps because it is true.

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GOP plan to privatize Social Security gives US retirement future to Wall Street gamblers

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Social Security is one of the most popular programs in America. Yet the GOP and Tea Party conservatives want to hand it over to Wall Street so it can become a profit generator for corporate gambling. No doubt the idea is being funded by lobbyists looking for easy money with loads and fees they can put on taxpayers' tabs. Why else would there be such a hard push to dismantle one of the most efficiently administrated government programs America has?

Out of every dollar that Social Security takes in, only .09 cents goes toward running the program. If Wall Street takes over, those costs will become fees of 5%, according to MSNBC.

Former president George W. Bush suggested privatizing Social Security in 2005. When the financial markets collapsed in 2008, retirement plans and 401K’s crashed along with the rest of the stock market, and millions were relieved that the Bush plan never went through. If it had, retired Americans might have lost their monthly checks entirely. Is this the path America really wants to take? Or do people simply not realize just how high the stakes are in giving Social Security to Wall Street?

People were outraged when CEO’s at taxpayer bailed-out financial institutions gave themselves multi-million dollar bonuses with TARP funds. Do they really want to give them even bigger bonuses with loads and fees tacked on to Wall Street controlled Social Security, or has anyone in favor of the GOP plan to privatize America’s future thought about that one?