Posted on 11/27/2012 9:35:36 PM PST by neverdem
Were the average Republican asked for a succinct statement of his views on taxation, he or she might respond thus:
“U.S. tax rates are too high for the world we must compete in. The tax burden — federal, state, local, together — is too heavy. We need to cut tax rates to free up our private and productive sector and pull this economy out of the ditch.”
This core conviction holds the party together.
Yet today the leadership is about to abandon this conviction to sign on to higher tax rates or revenues, while the economy is nearing stall speed. Yet, two years ago, President Obama himself extended the Bush tax cuts because, he said, you do not raise taxes in a recovering economy.
Why are Republicans negotiating this capitulation?
Because they have been warned that if they do not sign on to a tax hike, they will take us all over a fiscal cliff.
If we go over, Republicans are being told, you will be responsible for tax hikes on all Americans as the Bush tax cuts expire on Jan. 1.
You will be responsible for a surge in tax rates on dividends, interest, capital gains, estates.
You will be responsible for an automatic sequester catastrophic to the national defense.
This is the pistol Obama is pointing at the GOP. This is extortion.
The Debunker asks: Should the GOP cave on tax hikes?
Republicans are being told that they either vote for something they believe to be wrong and ruinous — or get something worse. Pay the ransom, fellas, Obama is demanding, or take the blame for a second recession.
Like the Panama Canal debate that made Ronald Reagan a hero, this is a defining moment. No GOP senator who agreed to the Carter-Torrijos treaty ever made it onto a national ticket.
What are the perils for Republicans who sign on to an Obama deal?
They will sever themselves permanently from much of the base of the party. While their votes may ensure that tax rates or revenues rise, they will have no assurance that the promised spending cuts will ever be made. Even Reagan fell victim to this bait-and-switch.
Then, if the tax hikes slow the economy, Republican collaborators will share the blame. Not only will they have gone back on their word, they will have damaged the recovery. What would be their argument for re-election?
If you believe higher tax rates or tax revenues would be like poisoning an already weak economy, why would you collaborate in administering that poison? Why not just say no?
Having lost the presidency and seats in both houses, Republicans should not partner with a president with whom they disagree on principle.
They should act as the loyal opposition in a parliamentary system whose duty it is to oppose, to offer an alternative agenda and to wait upon the success or failure of the government, as Labor is doing in Britain and the conservatives are doing in France.
What should Speaker John Boehner do?
Tell the president politely that America’s problem is not that we are taxed too little but that we spend too much — and the GOP will not sign on either to tax rate or tax revenue increases. For Republicans believe that would further injure the economy — especially an economy limping along at between 1 and 2 percent growth.
Then Boehner should depart the White House, go back up to the Hill and urge his Republican caucus to do two things.
Pass an extension of the Social Security payroll tax cut and block its automatic rise from 4.2 percent of wages to 6.2 percent. To raise that tax now and scoop off the discretionary income of most of America’s families in this anemic economy makes no sense economically or politically.
The House should then vote to extend the Bush tax cuts for another year, with a pledge to do tax reform — lowering tax rates in return for culling, cutting or capping deductions for the well-to-do in the new year.
Then let Harry Reid work his will. If the Senate votes to let Social Security taxes rise, let Harry and his party explain this to the middle class that gets hammered in January. If the Senate votes to let the Bush tax cuts lapse for those over $200,000, decide in the caucus whether to negotiate — or to go home for Christmas and New Year’s.
As for the automatic sequester that would impose $100 billion in cuts next year, half in defense, do nothing. Let it take effect. The budget has to be cut, and while these cuts are heavy on defense, the depth and mixture can be adjusted in the new year.
If Republicans walk away from tax negotiations with the White House, market investors, anticipating a sharp rise in tax rates on dividends, interest and capital gains next year, will start dumping stocks, bonds and investments to take advantage of the last year of lower taxes.
The market may tank. Let the party of high taxes explain it.
This emotional blackmail has been the strategy behind everything 0bama and the Dems have done. America is being driven to total ruination because no one in DC will stand up to it.
I would hang on to the land if you can plant or hunt it. Get rid of the paper. Watch Ann Barnhardt’s latest 8 part vid on YouTube. Actually, hunting will probably go fast cuz of poachers. Of course poachers make good dog food...
They will sever themselves permanently from much of the base of the party. While their votes may ensure that tax rates or revenues rise, they will have no assurance that the promised spending cuts will ever be made. Even Reagan fell victim to this bait-and-switch.
Then, if the tax hikes slow the economy, Republican collaborators will share the blame. Not only will they have gone back on their word, they will have damaged the recovery. What would be their argument for re-election?
If you believe higher tax rates or tax revenues would be like poisoning an already weak economy, why would you collaborate in administering that poison? Why not just say no?
If Republicans want to save this party and fight another day, it's time to once again, say "NO."
Thanks. And then cut taxes too. The economy needs it badly
Usually stories of a stock market melt down are written by people selling silver or gold, and I always try to take that into consideration. I actually searched out articles that aggressively attacked Ann. Lots of people call her a lunatic and compare her to a bum holding up a sign pronouncing the end is near.
But I noticed those articles don't present any actual reasons why she is wrong. I even wrote to Gary North about his article on Ann and instead of giving me a single small example of why he thinks Ann is incorrect, he told me to get lost and ended his email with "I don't care what you think."
At this point I really have no faith in the market at all. Everything Ann says could very well happen. I'm just not ready to let go of that last shred of "reasonable" thinking that says cashing out is drastic and fanatical. That little voice that says, "Just try and protect accounts as best as you can and wait for the whole thing to blow over". And just in case... buy that hand pump for the well.
I am no financial advisor, but do some research on munis. They are probably not the place to be either. We are going to go deflationary first—cash is king. Munis will fail along with the rest of them.
Then unplug the Phone in the Office of the Speaker of the House.
I went with the municipal bonds simply because they had the least amount of risks of the options I had in front of me. The chart showed a slow steady turtle-like line plodding on over the last 90 years, almost staying in range of inflation but not quite. When you talk about cash, are you saying cash in hand or cash holdings? Thinking about that 10% penalty + personal tax rate is a loss makes me so darn angry! I sometimes wish I had just skipped investing. I could have bought a killer pontoon boat, some sweet fishing gear, maybe new kitchen counter tops...
No one can refute a single thing she says. Notice the Brown Shirt Media isn’t the least interested in any part of it. Think of it. Two and a half HOURS of vid watched by thousands and the “journalists” ignore it. Even “conservative” so called journalists. Even Krauthammer, who I used to think had a pair. It’s like these folks aren’t stupid. They have to KNOW. They sure as hell don’t go near it with a story. Not even by accident. It is frightening, really. They do their best to fill their time with manufactured outrage over crap like Benghazi or what the hell ever but imminent global financial collapse isn’t even on the menu. Nowhere. Friggin’ spooky.
The founding fathers would have had lead flying by now.
But according to them we are all a bunch of conspiracy nuts clinging to our guns and religion... so what do we know? Heh!
Our country is flat broke and everything ZERO plans does nothing to correct the problem.
The only good thing is maybe we can start over and get the congress our founding Fathers designed for US. Citizens going to Washington to serve kinda like Jury Duty. Not the cushy jobs & perks they have now.
“Pass a Bill in the House that makes the Bush Tax Cuts permanent then send it to the Senate”
That’s the right thing to do. And re-pass the Ryan budget and say ‘this meets the criteria to avoid automatic tax hikes and spending cuts’, and go home. Reid and 0bama would need to present their full plan (not just the $90B ‘rich’ tax hike).
In reality, this won’t happen, and no agreement will happen. Possibly 0bama and Boehner have already agreed to something and their lackeys are working out the details. Then watch for a bait-and-switch, and Republicans will get the blame for the resulting mess.
bump
Social security is bankrupt, so lets underfund it. Brilliant!!!
I agree with Pat on this but the SS cut never should have happened and it should be allowed to expire.
Easier to just vote "present", say that if it was good enough for the President while he was a Senator, it's good enough for them, and let tax hikes and sequestration occur under the law the President signed a year and a hald ago...
If anything guarantees failure, it is Obama AND Boehner.
Let it all collapse.Let the world see what eighty years of the welfare state produces. There’s nothing of value left anyway, let it die
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