Campaign for America's Future / Op-Ed
By Richard (RJ) Eskow
Published: Saturday 28 July 2012
It's truly unbelievable: At no time in modern memory has
the privileged class been richer, the middle class more endangered, or
the number of people in poverty been so high. And yet the Republican
Party, whose leaders are overwhelmingly wealthy themselves, is openly
and shamelessly proposing to give more tax cuts to millionaires and
billionaires - including heirs and heiresses who have done nothing to
earn their riches - while actually raising taxes on millions of poor and middle class people.
There will be a time to engage in argument. But first let's take a moment to gaze in wonder at the nakedness of their greed.
Okay, moment's up. Now it's time for the argument.
In Plain Sight
Yesterday the Senate voted on a Democratic proposal to
extend the Bush-era tax breaks for all income below $250,000 per year.
Everybody would get that tax break, even billionaires. Taxes would go up
for anything earned above that amount, and for some kinds of investment
income. The bill would also preserve a number of tax breaks for middle
class and lower-income working people.
Forty-eight Senators voted against
the Democratic bill. Forty-four of them then promptly voted for the
Republican proposal, which would keep the Bush tax cut for earnings
above $250,000 - a cut which provides greater and greater tax breaks as
you climb the earnings scale toward "millionaire" status and eventually
ascend to the rarefied atmosphere of the billionaires' club.
They didn't even try to hide what they were doing. They
didn't bury it in loopholes, or under pages of indecipherable legal
language. They just ... put it all out there.
This is a stick-up.
The GOP bill would actually increase the average
tax bill for 25 million households who earn less than $250,000. The
Republican proposal would also end the Tuition Tax Credit, raise the
"marriage penalty" (hey, welcome to our world, gay newlyweds!), and
increase the tax burden for working families with kids.
Put up your hands, Mr. and Ms. America. This is a stick-up.
Bill Scher notes
that the Senators who voted to raise taxes on the poor and the middle
class while cutting them for the wealthy, then rejected the bill that
extends tax cuts for the middle class alone, were now on record as
believing that "the rich pay too much and the poor pay too little in
taxes."
For his part, Senator Joe Lieberman voted neither nor
against the Democratic bill, officially placing himself on record as
believing that "nonpartisanship" consists of standing for absolutely
nothing.
Class Warfare Against Our Children
The Republicans want to impose these new tax burdens on the struggling middle class while giving an average cut of $160,000 in income and estate tax cuts for households that earn a million dollars or more. And if those households earn a billion or more, the breaks could run into tens of millions annually.
But tax deductions so a working family can send their kids
to college, which is already all but impossible? No can do. Perhaps
they feel that parents who want a better life for their kids should
"know their place" instead.
The Republican proposal for taxable estates doesn't change
life for ordinary households but, as the Center for Budget and Policy
Priorities documents,
rich kids inheriting their parents' money would receive an average $1.1
million in tax breaks - while parents working to support their children
or put them through college would pay more.
The GOP proposal is nothing less than an all-out assault
on any but the wealthiest children, closing the door to every struggling
generation's dream of a better life. It's enough to leave a guy
speechless.
Embarrassment of Riches
Sure, they try to justify their actions, but it can't be done. It's actually embarrassing to watch them struggle
to cover the nakedness of their greed with rhetorical fig leaves. "Only
[our plan] is aimed at helping the economy," Senate Minority Leader
Mitch McConnell (R-Ky.) said. "Only ours is meant to help struggling
Americans in the midst of an historic jobs crisis."
Dear Sen. McConnell:
As the young people reportedly say nowadays: Please, girlfriend.
Sincerely yours,
A Concerned Citizen
But the truly cynical hack du jour is Sen. Orrin Hatch. His ploy is a bill called the "Tax Hike Prevention Act of 2013," which (get this) doesn't prevent tax hikes - unless you're rich, that is. Instead it ends the payroll tax "holiday" which (although it was a bad way to get tax relief for non-millionaires) is a "tax hike" according to every other Republican use of the term.
Ezra Klein points us to this language:
"The increased spending through the tax code from the partisan 2009 stimulus law (ARRA) is not included in the amendment."
What that means in plain English is that the Hatch "Tax
Hike Prevention Act" takes away the Tuition Tax Credit, marriage-penalty
relief, and other badly needed breaks for working families and
individuals.
War is Peace. Love is Hate. Spending is ... oh, forget it.
That language in Hatch's bill employs some Orwellian
phraseology you'll be hearing a lot in the next few months - mostly from
the GOP, but also from right-leaning Democrats. In their Craven New
World, tax deductions selectively become "increased spending" - or even
more scabrously, "increased stimulus spending."
Hatch's spokesperson compacted all of this doublespeak
into a single phrase, saying that the middle-class and lower-income
deductions they tried to kill today were really "expanded stimulus
spending through the tax code." That's supposed to sound really, really
bad.
What about their reasoning? What logic could Hatch,
McConnell, and the rest of the GOP possibly be using to justify this
expansion of the historically low levels of taxes paid by the wealthy -
now that they're collectively wealthier than they've been in many
generations and while the nation's struggling through such hard times?
In the interests of fairness, let's hear 'em out:
Hatch objects to tax hikes on the wealthy because, he says, "you hit
about 800,000 small businesses where the jobs are created" while only
collecting an additional $36 billion in revenue. McConnell said that
"raising taxes (on the wealthy) would stall the rebound we all claim to
want."
So they're defending their tax cuts for the wealthy by
saying they will a) create jobs, and b) foster economic recovery. You
know what that makes them? Right: By their own definition, what the
Republicans are proposing is "expanded stimulus spending through the tax code."
Despite their rhetoric, Republicans aren't always against a stimulus. It all depends on who you're, ahem, "stimulating."
Case Closed
Okay. So we know that the entire "stimulus spending
through the tax code" argument is a phony, a fake, a rhetorical dodge
that's an insult to voters' intelligence. We also know that
justification for it has repeatedly been disproven, in the most ruthless
and accurate court of economic judgment known to humanity: reality.
You don't need a lot of econometric modeling to prove it,
either All it takes is one simple question: We've had these cuts for ten
years, so where are the jobs?
Joshua Picker notes
that "during the economic cycle that began in March 2001 and ended in
December of 2007 --which almost exactly coincides with the Bush
presidency and the implementation of the Bush tax cuts ... registered
the weakest jobs and income growth in the post-war period."
Tax cuts on the wealthy didn't create any jobs - not
before the financial crisis brought on by deregulation, and certainly
not since. The Republicans, like the Democrats, are proposing "stimulus
spending through the tax code." They're just proposing the kind that
doesn't work.
A Novel Way to Give People Jobs
That leads us to what would be the next logical question -
that is, if we really were engaged in logical debate rather than
shameless pandering: Accepting Hatch's figure of $36 billion in revenue,
how might we spend that money in a way that would create jobs? There's one approach that's worked every time: We could use it to create jobs.
That's right: One sure way to increase employment is by
hiring people. And in a happy coincidence, the kinds of jobs which
government can provide are exactly the kinds of jobs we need right now:
Teachers. Cops. Firefighters. Construction workers to rebuild our
crumbling public infrastructure.
For all the needless misery we're experiencing, the
solution is beautiful in its simplicity. And that solution isn't just
obvious - it's proven. It worked after the Great Depression, it worked after World War II - in fact, it's always worked.
We Are the 0.99 Percent
Instead, the GOP's proposing a plan that would benefit our
2,100,000 highest earning households, while shafting about 25 million
others. The American Prospect tells us who loses under their proposal, and it isn't pretty.
On the flip side, the GOP deal gets better and better as
you look at households that are higher and higher up the income ladder. A
family earning $251,000 in taxable income probably wouldn't even break
even, while one earning $350,000 might save a few hundred dollars.
But a household earning a billion dollars a year could save tens of millions under the GOP plan.
Which gets us to another under recognized fact: Even the 1 percent suffer from income inequality.
As the CBPP also notes, the GOP's estate tax breaks are targeted to the
top 0.3 percent of inheritances - while many working or poor families
leave no estate at all. The Republicans know who really greases their
wheels, and it ain't the local neurosurgeon pulling down a few hundred
thousand.
When you're talking about pay-to-play politics, the real money is with ... the real money.
F For Effort
Everybody, including billionaires, gets a tax break under
the Democratic proposal. Maybe the Republicans don't like the fact that
that a billionaire's break isn't any larger than that of someone who
makes $250,000. Maybe the fairness irritates them. Or maybe they don't
want the hoi polloi to get uppity. Nah, that's not it: You'll find the explanation for their behavior under "real money," above.
As we were saying: They're not even trying to hide it anymore.
I miss the old days, when hack politicians at least felt
the need to give voters a decent cover story for their chicanery. After
all, if they're going to stick it to us, the least they can do is put a
little effort into misleading us. C'mon, guys, show a little more
courtesy! You're not even trying to fake it.
There used to be a saying: "If you can't dazzle 'em with
brilliance, baffle 'em with bullish*t." But apparently even that's too
much effort nowadays. In this post-Citizens United world you can just have Sheldon Adelson write another check instead.
For Whom the Bell Tolls
What do you call a political party that doesn't hide its
own corruption - the "Marie Antoinette Party," for "let them eat cake"?
Apparently Marie Antoinette never said those words, so that's out. The
"Butlers and Valets Party," since they're acting as foot servants and
toadies to the ultra-wealthy? Do you reassign the "GOP" acronym so that
it stands for "Greed On Parade"?
I admit it: I'm almost at a loss for words. And since
words are a big part of how I make my living, that would be an
occupational disability. Oh, and that reminds me: They want to cut
disability payments too. It's part of their plan to cut Social Security,
whose benefits go to children and the disabled as well as seniors. And
while we're at it, let's not forget that they want to slash away at
Medicare with a flim-flam voucher plan.
Sorry, Gramps, say the Republicans, but we've gotta find
the money for the rich kids's tax break somewhere. Try not to cough on
the carpet as you find your way out. I'd see you to the door myself, but
Master's in the study ringing his bell.
GOP to America: Suck it up, small fry, while we serve our lords and lieges their afternoon tea and biscuits tax cuts.
Minority Leader McConnell refrained from his typical
obstructionist filibustering this week and allowed a floor vote on the
Democratic tax proposal. "The American people should know where we
stand," said McConnell. "Today they will."
Congratulations, Senator: Mission accomplished. Now it's the House's turn.
Do you hear that sound, Mr. Boehner? Somewhere deep within
in a stately mansion, a person of great wealth and privilege is ringing
a bell. Don't even bother asking that ancient question, because in this
case we already know the answer:
It tolls for thee.