Skip to comments.GOP Signals Fold on Tax Hikes
Posted on 11/18/2012 3:30:04 PM PST by COBOL2Java
RUSH: Folks, this was predictable, too. The Republicans are establishing the mechanism to cave on tax increases. McConnell, we've got the sound bite, ready now to talk about revenues as long as there's talk of spending cuts, but you and I know that there won't be any of those because Obama doesn't have to cut any spending. That's the last thing there's gonna be, and so Obama wants $1.6 trillion in new taxes.
Now, here's something to think about. How's he gonna get that -- and he will. See, this is the thing that we've gotta realize. This is going to happen. It may be 1.2. He is going to get this. Boehner, we had our note from the chief of staff for Congress say Boehner said let Obama lead and see where it takes us. McConnell says we're fine and dandy on the revenue side now. The Republicans are the ones that always, "Okay, we lost the election, we're gonna have to moderate our tone and our beliefs," and all this. So we're on the verge here of watching the cave. Benghazi, too. I hope the Republican Party understands what's at stake for them politically in making sure that there is a single select committee on this. If you have a bunch of different committees looking into it or no committees looking into it, it's gonna blow the opportunity. There has to be a single select committee on this. Not just for the political value of it, but because it's the right thing to do.
We got four dead Americans, and it is a large scandal, which, of course, takes us back to Petraeus. No, let me finish one thought. How do you get $1.6 trillion in new taxes? Now, politics like this is quite simple. The Republicans have sworn in every campaign that they're not gonna permit a tax increase. The Democrats have said, "We're gonna raise taxes on the rich." Well, raising taxes on the rich and even getting rid of deductions is not gonna get you anywhere near $1.6 trillion. It's not gonna get you anywhere near $800 billion, just raising taxes on the rich. So how are they gonna do it?
My friends, I just want to alert you to a possibility. I'm like the old Hogan's Heroes prison camp guard, Sergeant Schultz, "I know nothink. Nothink!" But in thinking about it, how do you get to $1.6 trillion and both parties being able to claim that they were true to their political promises. There is a way to do it, and it's called the Alternative Minimum Tax, and it's called expanding the Alternative Minimum Tax to practically everybody. The Alternative Minimum Tax will not involve one change in income tax rates. So Obama, for example, will be able to go out and raise the rates, marginal rates on the rich at 39.6 and the Republicans will be able to say that they fought raising marginal rates on the middle class. The rates won't change, but over here is gonna be this thing called the Alternative Minimum Tax, which says that everybody's gotta pay a minimum of 30%. And a bunch of deductions are gone.
They'll probably leave the home mortgage deduction in for cover. And then the cherry on the top is making it retroactive to 2012, just like Clinton did when he raised taxes in 1993. So if you have an Alternative Minimum Tax that, say, hits 60 million taxpayers, but you haven't changed rates, except on the rich, and you get rid of a bunch of deductions for the rich, why, you're looking at a win-win, until people file. And of course the economic impact of this would be an abject disaster, taking $1.6 trillion away from people under the guise of reducing the deficit, when there is no spending cut anywhere near any of this. There's a patch, as you people who have been caught in the AMT, you know what hell it is. There's a patch that will expire I think this year. They'll let that go.
Look, I'm just talking off the top of my head here trying to figure out how they could get this done and, within the realm of politics, be able to tell their voters that, "I didn't break any promises." And it's right out there waiting, AMT. And then if you want, put a VAT on top of it, and just claim that, "Well, yeah we're gonna tax the rich even more. We're gonna tax every level of consumption, it's gonna really hit the rich," and of course the Obama educated voters, "Yay!" Economic impact of this will be an abject disaster. You know, some people have to file an Alternative Minimum Tax even though it doesn't apply to 'em. The Alternative Minimum Tax form is a nightmare to have to deal with. Talk to your accountant. Well, you know if you pay the AMT, if it hits you.
But just think about it. I could be all wet here. I'm just thinking how do they do this. And I'm thinking about this because I'm seeing the signs of Republicans giving in on opposing new taxes. At the highest levels. Three governors, including Bob McConnell of Virginia. They're all saying, "We're willing to put revenue on the table, as long as we get some spending cuts." Well, yeah. And I'm sure that the regime will say, "Oh, spending, we'll certainly look at that. We'll lop a couple hundred million off of this and a couple hundred --" and bam, everybody gets, "Yeah, we cut spending," and there really won't be. I can see this. Well, elections have consequences.
RUSH: Here's Tom in Dexter, Michigan. Tom, I'm glad you called. Welcome to the program, sir.
CALLER: Glad to be here. You earlier talked about the tax increases that are coming. The impending tax rate increases will not translate into increased revenue for the government because we're on the wrong side of the Laffer curve.
RUSH: Yeah, you're right, you're right. I'm not arguing with you, but it will at first. There's gonna be a huge transfer of money from the private sector to the public sector, they'll be able to show it. But the point is over the not so very long term it's gonna shut down economic activity, and ultimately, you're right, it is going to cost the government money. But Obama doesn't care about that. If he cared about that we wouldn't have had the last four years. The Obama tax plan -- I'm glad you mentioned this, Tom -- the Obama tax plan's not about raising revenue. It's not about reducing the deficit. He says it is, but it's not about that because it won't do that. It's going to fundamentally change the relationship of citizen to state. It's going to fundamentally remove capitalism as the US primary economic system. All it's gonna do is grow government and we're gonna implode. We can't at some point sustain any of this, and that's not far down the road.
CALLER: In a nod the Hostess, the government eventually is gonna have half a box of Twinkies, you know, as opposed to having 20% of a truckload of Twinkies, 'cause that's where they're at on the Laffer curve.
RUSH: Well, even about that, that's, again, 18,500 people losing their jobs. It's a union struggle. If anybody thinks the Democrats are willing to compromise about anything, here's the perfect chance for them to come in and compromise, do a good thing. No way, not interested in compromise, folks.
well that was unexpected..
leftists are not interested in compromise, they interested only in destruction
You can double post that any time.
A Labor Victory Over Hostess (satire)
Whenever I think of John Boehner I ask myself, did really really lose all that much in the election by not gaining control of the Senate?
The GOP would have been better off with Pelosi putting her name to all of this stuff John Boehner’s doing.
Ted Cruz doesn’t put up with BS. He’s going to shake things up and give McConnell heartburn!
Ted Cruz doesn’t put up with BS. He’s going to shake things up and give McConnell heartburn!
If the GOP raises rates, I will spend the balance of my life putting the GOP out of its misery.
The Republican Party’s only operating principle is to have no principles.
This is why tax payers never bother to vote. Why bother wasting the expensive gasoline? There's no one left to represent them.
Until the Repubocrats crash and burn the system, and the tax slaves are finally freed, all the good, honest people in this country can do is wait it out.
The only way to destroy the Republican party is with pitchforks and torches, and id you go that far, might as well do the Dems. too.
The Bush Tax Cuts would not be on the verge of expiring if the Gutless Old Pretenders had made them permanent while they had full control of the House, Senate, and Presidency.
How short our memories are.
Really is disheartening, isn’t it? We’re already hearing that Democrats are digging their heels in to block any benefit cuts, and the GOP House - the last check against Obama - is ready to throw in the towel on taxes.
I disagree with Limbaugh that there will be no spending cuts, though. I think there will be plenty cut from defense. It will all go back into the every-growing Obamacare monstrosity, but it will be cut.
The headline is obviously wrong. “Conservatives” never agree to tax hikes. /sarc
This fical cliff is all about several hundred billion dollars? America now owes over 16 Trillion dollars. Is this all a sick joke??
With bonehead, Cantor and McConnell, what other outcome would
One expect. These hacks will do anything but cut DC spending
No Spending cuts?
Well there are a bunch of automatic spending cuts going into effect in January but since Republicans have spent many months claiming that those cuts they passed themselves would destroy this country, after two years of claiming the spending is killing us, its hard to believe them on anything now.
Do nothing and you got spending cuts.