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We all know it's coming... Time to get on the ball and put out the effective meme before the cacophony overwhelms common sense (it may be too late!)

Time to pinhole the SOB's and hit 'em with some ree-al-ih-tee!

And even beyond that... they must pay more. This country has been on a joy ride for 30 years, financed with the sweat of the middle to lower class.

The Republicans have walked themselves out onto a limb. CUT THE DEFICIT! That's all you hear these days. Good news is... there's a great way to lower the deficit, and it gives Dems a great opportunity to take it to the GOP. If you can't look at this chart and see a political opportunity as a Democrat, you should reconsider your chosen profession.

Just to be clear... I'm not advocating dialing back the tax cuts for the Middle Class. I say you need to wait until the second term for that because by then you'll have better idea of the true deficit picture. In fact, it is very important that every call to repeal tax cuts for the rich be followed by a declaration of support for middle & lower class tax cuts, lest the messenger be painted with a broad "tax raising" brush by the GOP (it'll happen anyway but at least you'll have the competing message out there as a rebuttal).

The bottom line is that structural deficits are an important issue that must be dealt with. But most Republicans are using the notion of deficits for political gain and nothing else. The tax cuts are contributing far more to the deficit than non-mandatory, non-defense discretionary spending. Any politician truly interested in lowering the deficit has to examine these tax cuts and determine if keeping them is more valuable than repealing them. The obvious answer is that after eight years of Bush, the verdict is in. Stagnant wages for most Americans during that period capped with a horrible recession make it clear that tax cuts are not a panacea.

The other nice thing about the repeal strategy is that it reinforces message discipline. These guys over here want to go back to the policies that got us into this mess (tax cuts). We want to try the opposite (repeal). It worked during the 90's. A Democratic President pushed through a modest tax increase (36-39% at the top I think) and the country experienced a fairly well-distributed period of growth. Time to get back to that kind of policy!

The temptation by some will be to abandon principle by caving to the "never raise tax cuts during a recession" meme. Two answers to this... First, the recession is over. The economy is growing, albeit slowly. Second, the folks who would be affected are doing just fine. Just find your favorite villainous CEO and say: That guy is going to have to pay more taxes. I doubt most reasonable people would disagree with that.

Originally posted to Hy on Wed Jul 21, 2010 at 07:52 PM PDT.

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Comment Preferences

  •  Tax Cuts (7+ / 0-)

    Taxes should not be raised during a recession - on the middle class. OTOH, the Bush Tax Cuts must go - they have drained the middle class and given the profits to the rich.

  •  I see your proposal and raise it several notches (5+ / 0-)

    Time for the tax code prevalent under Eisenhower, with a few new wrinkles:

    Raise tax rates high enough that the ultra-rich pay what they did under Eisenhower...about a 51% effective rate on a top marginal rate of 91%, or about THREE TIMES what they pay now.

    Tax capital gains and dividends at the same rate as the equivalent in wage, salary or personal (S-corp) profits

    Institute an 0.25 percent financial transaction tax on the total value of the financial trade to apply to all forms of financial trades with the exception of plain vanilla bank accounts.

    Tax fossil fuels with a carbon tax, refundable credit to the lower 90 percent of the income distribution.

    Remove the cap on FICA taxes to make it a flat rather than regressive tax.

    Taxes were much higher on the upper classes in the 1950s, yet incomes grew steadily for all, not just the upper classes, and the benefits of the economy were more broadly shared. Low taxes on the rich promote nothing but unsustainable bubble economies chasing easy money.

    "Trickle down economics 101: They get the golden parachute, we get the golden shower"

    by NoMoreLies on Wed Jul 21, 2010 at 08:14:26 PM PDT

    •  How correct you (1+ / 0-)
      Recommended by:

      are.  Here's the history of the top income tax rates since the income tax inception in 1913.

    •  All well and fine. For starters, that is. (1+ / 0-)
      Recommended by:

      But it won't pass unless more Dems are elected to Congress.

    •  You do that... (0+ / 0-)

      and there will be another big sucking sound of the rich and business owners taking their business elsewhere as well as jobs...we are not in the 1950s anymore...there is global communications and interoperability of systems and logistics world-wide...

      The base of operations can be anywhere in the world...

      We can raise the top tax rates back to the WJC levels, much beyond and capital will flow to lower tax countries...

      It already is, I have a client that 5 years ago had 80% of its business  in NYC, now 20% is in NYC and the rest is in eastern europe and asia...because of taxation rate differentials...and they are hiring...but not in NYC...

      When businesses decide where to hire, they have to consider before and after tax dollars...

      Obama - Change I still believe in

      by dvogel001 on Thu Jul 22, 2010 at 05:24:01 AM PDT

      [ Parent ]

    •  You don't think... (0+ / 0-)

      that marginal personal tax rates go into decisions of where to locate your best talent...

      When you want to hire someone, they calculate what their after-tax compensation will be not before tax, so if a person wants to take home $5 milion for his services to a company under your plan in the US they would have to pay them about $40 another country they would only be about $7 or $8 million...where do you think they will want to locate that executive...

      So you is only 1 executive...let them go...but that is not all, the management team is also going to be hired and maintained in the location of the executive too...

      The bottom line is that in a modern age...we need to be competitive and smart about taxation rates to be fair and maximize income...otherwise we will just push capital and talent to other countries...

      Obama - Change I still believe in

      by dvogel001 on Thu Jul 22, 2010 at 06:23:24 AM PDT

      [ Parent ]

  •  Strong Budget would strengthen World Economy (0+ / 0-)

    If we did the serious; the world economy would improve.  It is politically sound to insist over and over that majority of population does not have a tax increase. Tea'ers all believe they have higher taxes now, when they do not. Wealthy got most of the breaks under BUSH & GOP, so need to bear much of the responsibility.

    I think a tax on oil placed directly on deficit reduction would be the wisest tax. Improves our fiscal position and makes alternative energy more competitive. Improve confidence in dollar, social security, etc.

    The past, present, and future are equally compelling; none of the three are easily understood.

    by Grey Panther on Wed Jul 21, 2010 at 09:36:30 PM PDT

  •  Economics via cereal box. n/t (0+ / 0-)

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