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Subscribe to RSSIn a purely political exercise this afternoon in the Senate, Senate Democrats narrowly passed a bill 51 to 48 to extend Bush-era tax cuts for middle class Americans for another year. With Vice President Biden presiding over the Senate, Democrats lost only two votes: Sen. Jim Webb (D-Va.) and Sen. Joe Lieberman (I-Conn.), who regularly votes with Democrats.
Under the plan, income tax rates for individuals making up to $200,000 and families making up to $250,000 would remain the same in 2013. Rates on upper income Americans would expire on Dec. 31st.
"This is a big victory for the American people today," Vice President Biden said in a show of support for Senate Democrats. Biden's presence in the Senate chamber was a symbolic move, his vote was not needed to put Democrats over the top.
The bill follows through on an election-year call from President Obama to protect the middle class from an income tax hike next year. He has campaigned on the message that wealthier Americans should pay more in taxes to help reduce the national deficit.
"Democrats believe this country can't afford more budget-busting giveaways for the top 2 percent of earners," Majority Leader Harry Reid told his fellow senators on the floor.
But Republicans argue the Democrats’ bill would mean almost a million small business owners in those upper tax brackets would see a tax increase. Minority Leader Mitch McConnell said Democrats are not serious about the nation's fiscal problems.
"We know this is not about the economy. We know this is about the election," he shot back at Reid on the floor.
"Thank goodness it’s not going anywhere because it would be bad for the economy. The single worst thing we could do to the country," he said of the Democrats’ bill.
House Republicans have no plans to take up the Senate-passed bill; they will move ahead next week on their own legislation that would extend the Bush-era tax rates for all Americans for one year. A similar version failed today in the Senate.
The legislative maneuvering has set the stage for two competing messages heading into November.
As the Senate Democrat's political messaging leader Chuck Schumer (D-NY) told reporters,
"The House can either pass these middle-class tax cuts, like we did, or it will be clear they're putting millionaires first."
Or the Republican view as articulated by Mitch McConnell: "Here's the Democratic plan for the economy: ‘We'll get this thing going again. We'll get it going again by raising taxes ... give us your money, and we'll handle it for you.’ That's their tax plan. That's their plan for the economy and jobs."
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Don't just blame the conservatives. Both parties had a hand in our current state. Bill Clinton and his push to increase home ownership for people who could not afford it help to create the housing bust. Admittedly Bush continued Clinton's policies which make puts the blame in both parties laps but the lion's share of the housing debacle falls to the Dems. Dem. Barney Frank had been a key figure in promoting the risky mortgage lending practices imposed by the federal government on lenders, and on Fannie Mae and Freddie Mac to buy risky mortgages from the lenders. Barney Frank blamed the resulting collapse of financial markets and the economy on everybody except Barney Frank. Look, there's enough blame to go around. The Dems, the Reps, the House, the Senate, the White House, mortgage brokers, real estate agents, Wall Street firms, too-easy credit, the Federal Reserve. They ALL had a hand in this recession so don't buy into the lie of blaming ONLY the conservatives or ONLY the liberals. If that is the way Americans see it...blaming one party and excusing the other...then things will never change and America is doomed.
Sadly, nobody is doing the Math. Unless we cut Government spending dramatically we will hemorrhage. The other even sadder fact is a huge amount of funding can be cut without touching Social Security, Medicare or the Military. The Government honestly does not even know how to conduct an Audit. Reality check. It would take years to do an Honest Audit. It really does not matter who is running what with regards to the White House, Senate or Congress. This problem will take the American People protesting like this Nation has never seen. It would make the Peace Protests of the 60's look like a OWS strike at a City Park. Than if we could get back control it will still take at least five to ten years to even begin to see a realistic reduction in the deficit including a balanced budget during those years.
People don't seem to understand that Obama's $250,000 tax cut is for everybody, including the rich. The first $250,000 of income for everyone would be taxed lower, after that, it would go to Clinton era taxes. Reagan would have agreed with this policy, he did raise taxes on the wealthy after all. Obama used the same argument Reagan did for his tax hikes.
A lot of people complain about entitlement programs. I don't know too many people that would like to sit around on $500 a month that wouldn't rather be actively engaged doing something and making $2k a month or more.
And I don't know what the policy is in your states, but in California, you can't get any assistance unless you're working (exempting SINGLE mothers or fathers with children under 2 yrs old). So there goes the theory that welfare recipients don't work.
Seems to me that these jobs they're at need to be paying MORE. And if education is the problem, then I'd rather send these individuals back to school so they can get decent jobs rather than have them toil uselessly in jobs that result in no tax revenue. If they got aid, they should give back, but they must be capable of it also.
Granted, some people aren't meant for higher education and some are content being worker bees.
As for taxing the rich to pay for said programs, I'm sorry, but why is your money more valuable than mine? I pay my marginal 28%, and it hurts. I could do with that money, but I understand the concept of the "greater good". I have a house, a car that runs well, and I'm not starving. Why is it so hard for those in the 33% bracket to make it? Seems they should take their own advice about living within their means....
but they will pass the increase onto the rest of us
KEEPING IT THOUGHTFULLY HONEST: Hey Mr. McConnell and the Senate Obstructionists, Thank you for your recorded up-and-down vote to make your
party's position perfectly clear for the next election! Let's see! It’s was to
a vote to STOP the back to the future of more G.W Bush depression economic
Policy of tax cuts for Billionaires and millionaires to create another Trillion
dollars of national debt! The Senate was able to avoid the 138th
filibuster to allow “voted on Wednesday to keep current rates for people
with incomes of less than $250,000. Tax
rates would rise by 4 percent on incomes above $250,000 for couples and
$200,000 for single filers. Popular breaks like the child tax credit would be
preserved.” The Tax relief
extension passed on a vote of 51 Democrats and Independents for to 48
republicans against which provides a short-term win for the Middle Class
Americans! However, this Senate pass bill that is supported by our President
must deal with the political reality of needing passage in the House! Speaker
John Boehner (R-Ohio) and his republicans will NOT allow a vote since they know
that if he puts this bill on the House floor, his republicans will be trouble going
on the record to vote against it. So it won’t happen! THE INCONVENINET TRUTH:
However, it does make it perfectly clear what many of us have been saying, Who
stands for Middle Class Americans and who is more interested in continuing the
class war to protect the Billionaires and Millionaires?
KEEPING IT THOUGHTFULLY HONEST: Hey Mr. McConnell and the Senate Obstructionists, Thank you for your recorded up-and-down vote to make your party's position perfectly clear for the next election! Let's see! It’s was toa vote to STOP the back to the future of more G.W Bush depression economic Policy of tax cuts for Billionaires and millionaires to create another Trillion dollars of national debt! The Senate was able to avoid the 138th
filibuster to allow “voted on Wednesday to keep current rates for people
with incomes of less than $250,000. Tax rates would rise by 4 percent on incomes above $250,000 for couples and $200,000 for single filers. Popular breaks like the child tax credit would be preserved.” The Tax relief extension passed on a vote of 51 Democrats and Independents for to 48 republicans against which provides a short-term win for the Middle Class Americans! However, this Senate pass bill that is supported by our President must deal with the political reality of needing passage in the House! Speaker John Boehner (R-Ohio) and his republicans will NOT allow a vote since they know that if he puts this bill on the House floor, his republicans will be trouble going on the record to vote against it. So it won’t happen! THE INCONVENINET TRUTH:
However, it does make it perfectly clear what many of us have been saying, Who stands for Middle Class Americans and who is more interested in continuing the class war to protect the Billionaires and Millionaires?
how many bills are on harrys desk that they didnt vote on and the tax increase will be paid by the middle class in increased costs of goods and services why dont you understand that
Sammy, Sammy, Sammy
Everyone of those bills contains crap like defunding the EPA, Planned Parenthood and on and on. They are incapable of sending a clean bill to the Senate. How hard is it for you to understand.
They Republicans wanted to include the useless pipeline and a couple of other poison pills into the bill. Just more of their crap. They know full well President Obama would never sign a bill loaded with that kind of garbage.
Do some research, stop listening to only Faux news and Rush. They are not on your side.
davey boy
Tax has been over 55%. If chart doesn't show up here is link
http://www.heritage.org/research/reports/2004/01/estate-taxes-an-historical-perspective
we still have, some in congress, that is not afraid to do things right, for the people of america. WAY TO GO DEMO'S. Repb's. could learn from this!
If Bush era tax cuts were so good for economy why was it crumbling in 2008?
Why didn't Bush make cuts permanent if they were such a brilliant economic development tool?
Does it appear to anyone else that by not making the cuts permanent it makes an excellent diversion in what Bush was really doing and also as a rally call at election time?
These are not really tax increases they are just allowing all the taxes that previous Republican senates and congresses passed to go back into effect. Before you say it, please remember Clinton never had a democratic senate and congress at the same time , remember most of the taxes being fought over were constructed and passed while Willie was getting impeached and were done by Newt and the boys and continued under Bush and added to while Bush made many cuts and increased spending by trillion of dollars a month, 2 unfunded wars, and billions to oil and gas, big business, lax regulations, remember Bush started the tarp funds, bailed out the bank wall street, billions to Bain capital funds? Ask nit to tell you about all the fiat stocks tarp bought for him?
So just remember all Obama wants is to keep taxes as low as possible for all people making less than 25000.00 dollars low and for all those tax credit grabbing tax deduction filing folks well times are a changing.
read report how obama
This is the trickle-down economics of Raygun and even Raygun raised taxes several times; when was the last time you experienced something trickledown and it was a good thing.
who do you think is going to pay for this we are in higher costs for goods and services
There's no such thing as a free lunch Sammy. We're already paying. And since it isn't enough, we're signing loans that our grandchildren will have to pay too.
Ideally we want to stop bleeding money and start absorbing it. That means growing the middle class and expanding opportunities. The Albert Einsteins, Bill Gates, and Steve Jobs of the world are not only found amongst the rich. They are also found amongst the poor. We need to find these people and get them to pioneer new markets. It'll take investing in the American people, but if we're hemorrhaging money, better use it for something that'll bring exponential returns.
How about this for an approach to federal spending you vote on your w2. You get to utilize tax spending you supported and not those you don't support. If you did not support highway funding you pay a private managing company ( creating jobs here) a fee every time you use a road federal government build and or maintains with or with out state dot. So when you arrive at hospital no insurance, no care, no excuses, pay or leave. Food stamps same thing no income, no food, no support of food for the hungry checked on your w2 no food stamps, no exceptions no food ask you republican buddies. The list goes on and on. The best part is you can move to a state that supports your life style and charges no state tax either. So grab a shovel plant some food, dig a well and walk to work in Texas, Arizona........ it's a dry heat, not to hot in Alaska....
The Senate can kiss my A**, and biden can kiss my A** also
I'm so sick of these politicians working for their own benefit rather than the benifit of their employers (U.S. citizens). They make me want to PUKE!!
In fact, when all taxes are considered, the share of taxes that each fifth of households pays is similar to its share of the nation's total income.[22] ITEP data show that in 2011, the bottom fifth of households received 3.4 percent of the total income in the nation and paid 2.1 percent of the total taxes. The middle fifth of households received 11.4 percent of income and paid 10.3 percent of taxes. The top 1 percent of households received 21.0 percent of income and paid 21.6 percent of taxes. The tax system as a whole is only mildlyprogressive.[23]
Everyone who made comments saying the rich are overtaxed just got owned...
Then look at who has the wealth, as in, who can AFFORD to EASILY pay MUCH MORE
Bottom 50% own 1% of wealth. the weathiest 1 percent of American households continued rising, hitting 34.5 percent in 2010. The top 10 percent's share was 74.5 percent.
Wealth is more important than income...GOP JUST SHUTUP WITH THE LIES ALREADY and take note that is 2010...2012 numbers will be FAR WORSE
The GOP can spin this all they want. The bottom line is, for the SECOND time, the GOP is putting the 1 percent ahead of the other 99. It is clear they have not a single care for the middle class - which makes the 1 percent lifestyle possible. Without us buying their services, their products, there would be no rich people, no 1 percent.
Hopefully, the puzzy Democrats won't cave in this time, like they did the first time the GOP held the middle class hostage.
Dale, If this were to pass in the house everyone would end up paying for it. It might not look like a tax, but when businesses raise their prices to cover the increase everyone will pay regardless of income. Quit whining about those that are successful and work harder, you might get somewhere. So many people wanting others to pay for their government so they will not have to pay. How many wealthy people have left the country to get away from taxes?
As usual the Democrats do nothing that is constructive. It is all just posturing for them.
Nothing happened yesterday with the vote in the senate. The reason the Republicans didn't filibuster it was because all tax laws have to start in the House. It was just a symbolic gesture by the Dem to let the public know there will be no laws passed in this congress. The 112 congress is the worst in the history of this country. This is what happened when the tea partygroup got in and know nothing about how the congress is suppose to work. Mitch McConnell's statement when he rose to power in 2009 was to see President Obama serve only one term. This was a President elected by the people by a majority of the vote. Not appointed by the Supreme Court like President Bush was. If we are not careful this election will be decided by the Supreme Court also. The courts decision to allow Cooperation to give all the money they choose without accountability is buying this election. There has to be compromise on both sides to make a country function for the good of the people. We are being manipulated by the 30 second sound bites. Think before you cast your VOTE this year. Please remember what was happening in Sept. 2008. This country was on the brink of going over a cliff, and you believe everything can be fixed in three and one half years. We are slowly getting better and if we will start building our infrastructure which is falling apart that will create jobs. More jobs more taxes will be paid. The more taxes collected the more we can pay our debts.
No, the more taxes you pay the more they will waste.
i agree with a lot of the posters !! all the tax cuts need to expire !! and that 2 trillion in cuts need to happen !! period !! no favoites !! MILITARY MEDICARE WELFARE FOOD STAMPS SOCIAL SECURIYY ALL NEED CUT !!!
Let's take it off the cliff and let the Bush tax cuts expire.
Thank you, Speaker Boehner, for dedicating yourself to a middle class tax hike!
The House will kill this tax bill
unless the tax cuts are extended to the wealthy. Is anyone out there
as sick and tired as I am of having to kiss the asses of the wealthy?
There's one little dirty secret that
you never see mentioned about the wealthy and it is this:
Most of them never worked a hard day in
their lives, and a huge number of them inherited their money. Those
that did somehow manage to “work” for a living started out with a
huge advantage like a well to do family and well to do friends.
Remind you of anyone you know?
Here's another little secret: The
so-called “job creators” are NOT small businesses. DUH. So
let's get off that. Please.
But the wealthy have something in their
favor, and that is employees in the government, commonly known as
Republicans. And a fairly large number of weak minded brain washed
knuckle dragging Republican supporters who though most of them don't
have a pot to piss in or a window to throw it out of really believe
the B.S. Republicans feed them.
And the really wealthy are so far
removed from us they might just as well be from Mars. Willard Romney
is a classic example. No matter how much he tries he comes up
smelling phony.
Which he is of course, because he knows
no other way. But if he ever wandered into a neighborhood bar in
some mining town somewhere that would be the end of him.
The Republicans voted to increase taxes on the middle class. We won't forget that.
um, no. people do not pay a single tax rate based on their total income.
if this bill becomes law, the tax rates will remain the same as they are now for EVERYONE, up to the 200,000th dollar (for individuals). rich, poor, doesn't matter - everyone pays those same rates. the 200,001st dollar (and all above) would then be taxed at a higher rate than now.
why don't reporters bother learning how our tax system actually works?
That and the LIBTARDS that think because they want the REVENUES to stay HIGHER and keep the tax rate lower and even lower them further, it seems like they get more money in but I guess they do NOT care about how much they take in just that they stick it to the rich(as they think will happen) The rich will pass the cost onto the POOR and MIDDLE CLASS. If that is what you want.
The Republicans voted to increase taxes on the middle class. We won't forget that.
I see alot of people out there that do NOT understand what raiseing the tax wil do. First it will lower the revenue that is brought in, as us business owners will make sure there is no money left to be taxed on. Unlike when these Bush tax cuts took effect, then the revenue INCREASED why would you want to cut your revenues just to say i stuck it to the rich. You libs are so dilusional. NEED TO GET YOUR HEADS OUT OF YOUR ASSES.
Therman the repubs. NEVER Voted to raise the taxes on the middle class that was the demorats that want to do away with the tax cuts. You have a hard time comprehending stuff. HERE I will type slower maybe you will get it.
Absolutely....
S corps and LLCs are run as personal taxes. The business has income and expenses - the rest is income to the owner and taxed. A new employee is an expense. But the money to pay for expansion and pay that employee the first year comes from the owners pay. So, growing the business from the profits is difficult with higher and progressive taxes which take a lot of the money.
Borrowing the money (repulsive as that has you pay interest) is more than difficult for small businesses. Expanding on money left over after you pay yourseld and feed your family is highly taxed. It is better to hold your business to easily achievable goals and keep expenses, expansion, and taxes to a minimum -and wait for better times.
You see why business is holding its cash and remaining as strong as possible?
Go ahead and raise those taxes which do nothing but punish those who could make a difference to this economy. I will just drop another notch and wait for you to kill yourselves off.
So the government will continue to borrow money to pay the salaries, benefits and salary increases for public servants in security, sanitation and education. The only other possible solutions are for these public servants to give up their increases and/or take pay cuts or the public will have to do with less services.
What the middle class doesn't understand is that their taxes pay for security (law enforcement), sanitation (garbage removal) and education (teachers). If the middle class doesn't cover the cost then the government has to borrow money to make up the short fall.
What you fail to understand is they pay billions to there UNIONS that they do NOT need. let them get that moeny back to pay the wages. There should be NO PUBLIC sector UNIONS.
They can take a cut in pay just like alot of us had to to save our co workers jobs. But NO these assclowns believe they are ENTITLED to more money each year even though the economy is doing worse, tax revenues are WAY DOWN, they all can take part in the downturn also. They say NO WAY take that guys job away so I can get paid more, nice to see your brother in arms treat you that way. Not just those of us that support them with our tax dollars. I am tired of the union people making billions off the backs of the working person.
@Carmen
We know all to well what our taxes pay for and we don't have a problem with that. We just want to have a fair tax across the board with the wealthiest paying their fair share. We don't want or need to gouge them.
Right now our taxes are the lowest they've been in 50 years. It's not working out all that well for us in the middle class. The so called "job creators" have not created jobs that the Republicans told us they would when Bush did this bill. They've had 12 plus years to step up and still nothing. Now the Republicans want to give them more because they're "job creators." Ahhhh, no, we're not going to do that.
Why do we have to keep giving them breaks while they do nothing to help the very people that worked and got them where they are. Republicans don't want to pay taxes but they sure as he!! want all the services that money pays for. You can't have it both ways. Reagan proved that.
Trickle down my butt.