« (Updated) First (and So Far Only) Denish-Martinez Debate Set for 10/21 on KOB-TV | Main | PRC Candidate McCamley to Take Las Cruces Fire Department Ability Test »
Tuesday, September 14, 2010
Guest Blog: Urge Action on the Obama Tax Cuts
This is a guest blog by Jim Hannan, a long-time progressive grassroots activist who lives in Santa Fe.
With six weeks left before the mid-term elections, it’s time for the Democrats to seize the day and pass tax relief for all American taxpayers. This means that our congressional delegation, all Democrats, should work hard to make sure that the Obama tax cuts are voted on in the next two weeks.
President Obama has proposed tax cuts for all single taxpayers making $200,000 per year or less and families making less than $250,000. This is following up on his campaign pledge to not raise taxes for this group of taxpayers, 98% of all taxpayers. Tax rates for incomes over these two amounts will revert to the Clinton era rates, going from the current 35% to 39.6%. However, high income taxpayers (2% of taxpayers) will still get a sizeable tax cut on the first $200,000 or $250,000 of income.
It is imperative that the Democrats act now on this tax cut. It is expected that the Democrats will lose both Senate and House seats in six weeks. If this happens, the Reppublicans will claim a mandate to extend the Bush tax cuts in their entirety. The high end tax cut will cost all of us $700 billion over ten years.
Some progressives may be taking the position to just let the Bush tax cuts expire. This will not happen. A new tax bill will be passed either in the lame duck session or in January. If the Bush tax cuts expire, withholding will increase on January 1st, and everyone’s paycheck will go down. The pressure will then be intense to pass a tax cut bill, and it will not be the Obama plan.
Take Action Now
Please contact our House members and Senators. Tell them to vote now, within the next two weeks, on the Obama tax cuts. And tell Jeff Bingaman and Tom Udall to support a Senate tax bill under the reconciliation rules. This will allow the Democrats to pass a new tax bill with 50 votes, and not allow the Republicans to filibuster. The Republicans used exactly the same process in 2001 to pass the Bush tax cuts.
This is a guest blog by Jim Hannan. If you'd like to submit a piece for consideration as a guest blog, contact me by clicking on the Email Me link at the upper left hand corner of the page.
September 14, 2010 at 10:38 PM in Economy, Populism, Guest Blogger, NM Congressional Delegation, Obama Administration, Taxes | Permalink
Comments
In the 'Good Old Days,' the richest Americans paid (1944 to 1963) over 90% tax on their taxable income. That is the "line 46" amount, what is left after all possible deductions, credits, off-shore accounts, etc. that was for the "over $200,000" bracket.
1964-1981 they paid 70%. Reagan came into office, dropped that to 50%, and tripled our national debt during his eight years.
I think we should go back to 70% tax on the line 46 amount for the wealthiest Americans, BUT that's not the over $200k crowd, that is the over $2 MILLION crowd!
If you look at the inflation rate from 1944 to 1963, then 1964 to 1981, it nearly doubles (1.7). Compare to 2000 and you have a ten-fold inflation!
$200,000 and above, the old "wealthiest" bracket, should be adjusted to $2,000,000. $200k these days is actually only middle class.
BTW, one good thing the Reagan administration introduced was yearly adjustment of the tax brackets for inflation (1985).
For inflation rate, see
https://www.minneapolisfed.org/community_education/teacher/calc/hist1913.cfm
Posted by: wedum59 | Sep 15, 2010 4:22:06 AM
200K income falls within the the top 2%of the population. If that income was "only" middle class, it would comprise 30% of the population.
Now, a teacher's salary is representative of middle class in this day and age of sustained depressed wages. Hence, your argument that 200K is not "rich" does not hold.
Posted by: qofdisks | Sep 15, 2010 7:39:18 AM
I agree with qofdisks that Ellen's argument doesn't hold water. However, I think her suggestion of a 70% marginal tax rate for income over $2 million has merit, when added to the Obama plan. Let's bring back real progressive taxation!
Posted by: Proud Democrat | Sep 15, 2010 11:04:59 AM
With six weeks to go, and early voting starting soon, I guess I don't think now is the time for a debate over marginal tax rates and incomes. President Obama made this a signature issue of his campaign. So do we stand with Obama or do we stand with McConnell and the tea party.
We can start the debate on tax rates in January when we have seen the new congress.
Posted by: Jim Hannan | Sep 15, 2010 11:47:28 AM
I agree with Jim. Now is the time to get support for Obama's plan. The rest is dreaming for right now. Call your members of Congress!
Posted by: Old Dem | Sep 15, 2010 7:18:20 PM
