How much respect does this White House have for low info Americans? None. They expect them to have already forgotten that the Republicans agreed to a massive tax hike on January 1.
Via Weasel Zippers;
White House deputy press secretary Josh Earnest whacked Republican lawmakers for their refusal to consider passing more tax hikes, saying that remains the “chief impediment” to progress on a budget and deficit reduction deal.
“For some time now, the chief impediment to reaching a grand bargain has been the refusal of Republicans to ask the wealthiest and well-connected to pay even a dime more to help us deal with our deficit challenges. I’m sad to report that, even months later, that, that continues to be the case, that we are seeing a group of Republicans in the Congress who are refusing to compromise on this,” he said.
I’m even sadder to report that Republicans DID compromise months ago with the Fiscal Cliff tax hike:
The bill raises income tax rates for those taxpayers with incomes more than $400,000 for individuals and $450,000 for couples from 35 percent to 39.6 percent. These higher income taxpayers will also pay higher rates on investment income, with rates on dividends and capital gains rising from 15 percent to 20 percent. Add the 3.8 percent ObamaCare surcharge on investment income — another tax that takes effect in January, and the top rate on investment income would rise to 23.8 percent for those high-income households.
The bill also raises taxes on couples earning more than $250,000 a year and single people earning more than $200,000 by limiting personal exemptions and itemized deductions.
Estates taxes will also be increased, with the top rate raised to 40 percent, with the first $5 million in value exempted for individual estates and $10 million for family estates.
The bill also delays the automatic $1.2 trillion draconian sequester spending cuts for sixty days. The sequester cuts, evenly split between defense and certain domestic discretionary spending, were scheduled to go into effect on Jan. 1, 2013. The $24 billion cost of the sequester delay is allegedly made up with a mix of spending cuts and new revenues from rules changes on converting traditional individual retirement accounts into Roth IRAs.
Worse, the bill actually increases the deficit by including:
- A permanent fix for the alternative minimum tax.
- A five-year extension of tax credits for college tuition and the working poor, which were enacted as part of Obama’s failed 2009 stimulus.
- A one-year extension for unemployment benefits, affecting two million people.
- The long-term unemployed could count on receiving emergency benefits for another year, at a cost of about $30 billion.
More on the tax increases via The Heritage Foundation:
Ordinary Americans, as President Obama often refers to the majority of Americans, were by no means spared the tax increases allowed in the fiscal cliff deal. Americans’ disposable income is getting cut any way you look at it. The higher Social Security payroll tax is just one direct example. Higher taxes on investors and small businesses will trickle down to other Americans primarily in the form of lower wages and salaries and fewer opportunities for career advancement.
Americans dreaming of starting their own businesses will particularly be affected. Among the 13 tax increases for 2013, investors providing much of the capital for start-up firms to get off the ground took multiple hits. The rate on dividends and capital gains increased from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).
Additionally, Obamacare imposed—for the first time ever—a surcharge on investment disguised as payroll tax. It raised a 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles). This brings the top rate on capital gains and dividends to 23.8 percent. And this represents a second layer of tax on capital gains. Most capital gains in the U.S. are first taxed at the highest-in-the-world corporate income tax rate of 35 percent.
Someone tell Josh, the REAL impediment to reaching a “grand bargain” is Obama’s intransigence on spending.
By the way, you tea partiers out there: remember back in 2009 when liberals kept telling us that Obama was a big tax cutter? All us “tea-baggers” were crazy to be saying “taxed enough already” because Obama was the biggest tax cutter the country had ever seen, and he wouldn’t raise taxes “one single dime.” Remember how we laughed and laughed because we knew that he was going to raise taxes big time to pay for the already bloated government leviathan he was so hellbent on expanding?
Yeah. Me too.