Best plan for the GOP? Raise taxes on the wealthy. View another article
by KindOfBlue
 
This might sound like conservative apostasy, and it is in a sense. I'm sure I'll hear it from other commentators on Libradex: The best strategy for the GOP in the lame duck Congress and going forward is to raise taxes on the wealthy. Here's the rationale:


As you may know, we are running a massive budget deficit, every year. This budget deficit is unsustainable and will lead to financial ruin and inflation in the near future.

As we have said elsewhere, we don't have a problem that our taxes our too low; we have a problem because spending is too high. We could double our income taxes this year...and still have a deficit.

But what is the chief weapon of the Democrats, clumsy as it is, against Republicans? Republicans are "for the rich", Democrats are "for the little guy". They don't particularly care about American businesses or even the American economy, they just are angry and don't want Republicans because they are "for the rich".

Well, what better way to counteract that then to raise income taxes on the rich?

Here's how it would work: Democrats can't agree to split the taxes about to expire, so it seems likely that all of them will be extended after the beginning of the year. Republicans should agree to this (after all they are currently in the minority in the House).

Once they take over the House, then they propose that they will raise taxes back to pre-2001 levels, but only for those with income above $1 million.

The reason for $1 million vs. $250,000 is that in many cities, clearing $250K is not "wealthy". It is solid upper middle class, but after schooling for children, housing, health care, other taxes (like property taxes), and other basic expenses, there is not always much to save at the end of the year. It's not "wealthy".

So what will happen after the GOP proposes this? Are Democrats going to reject it, after they have been harping about the "rich" getting a tax cut for 8 years? No chance. They'll have to go along with the REPUBLICAN proposal to raise taxes.

The public rationale for this is purely to tackle the deficit. In reality, the tax cuts for the rich are not a lot of $; tax cuts for the rich is only about $40 billion/year for those making $250K and up, so it's going to be even less than that for those making $1 million and up.

The tax cuts for the rich are less than $40 billion, while our deficit is $1200 billion this year. Clearly they are not a huge issue.

And in terms of effects, I doubt it would have much of an economic effect. A 3% increase in taxes, while certainly not desirable, is fairly modest given our financial situation. And taxing only those that clear $1 million ensures that most of the $ taxed would be simply saved.

But politically, such a thing would move mountains. Republicans can successfully refute that they are the party "for the rich", inculcating them from attacks for YEARS. When Democrats say Republicans are the party "for the rich", we can all answer "But Republicans raised taxes on the rich".

They would also show independents that Republlicans can COMPROMISE and can work toward SOLUTIONS, something independents CRAVE.

And they can use this to demand much more in spending cuts. Republicans compromised on tax cuts, now Democrats, it's your turn to compromise on spending. If Demcorats refuse to cut spending, Republicans can proudly hold their head up and say they tried, but those intransigent Democrats refuse to work toward real solutions to our deficit.

For a small price to pay, Republicans can insulate them from class warfare attacks for years to come, as well as bring over/keep valuable independent voters that are tired of bickering and want solutions. And hopefully Democrats can actually compromise so we can deal with our crushing debt. By making the first move, this puts all the pressure on Democrats.

Although unorthodox from a fiscal conservative position, the potential positive ramifcations outweigh the negative.


Topic How this article applies
Deficit (10)
Bush Tax Cuts (8)
Facts about Bush tax cuts (8)
Economy (10)
Obama (10)
Democrats (10)
Republicans (10)
Subscribe to get news+blog posts to your email.
Check us out on FB/Twitter:
Put smiles at the center of your Holiday! Save 15% on Christmas Flowers and Holiday Gifts at 1-800-FLOWERS.COM. Promo Code: XMAS15 - 728x90
Login to post a comment
Enter your comment below.
The speech Romney should give
Romney, Man of Steel: attacks from the right on Romney completely off-base
F****** Idiot Politicians: Chief Obama economist says tax hikes on rich would boost economy
BLS is full of BS; what every American needs to know
Real Story on Japanese Radiation
8 Facts about the Obama/GOP tax compromise
Is Obama planning on resigning?
Liberals DEMANDING US soldiers with foot fetishes to serve OPENLY
Tax cuts: no matter what happens, GOP has a winning hand
Obama tax compromise smashes Democrats in 2
Stay Classy, Dems. . .Or Maybe Not
The shot across the bow of the GOP
Would Democrats be happy as slaves under a Democratic President?
A DREAM Act to some...a nightmare for all of us.
Democrats' attacks on the rich bite them back...hard
The lonely road of Barack Obama
Idiot Liberals are unhappy reality exposed by WikiLeaks hurts liberal foreign policy
Why the fallout from Wikileaks is overblown
Why Wikileaks release is (mostly) a good thing for the world.
You'd have to be an idiot like Jimmy Carter to believe North Korea
Thank you...to America
Why the TSA scans/patdowns are 100% ineffective
Socialist Lawrence O'Donnell reveals the Democratic playbook on MSNBC
China sells its drones using videos of them destroying US aircraft carriers
TSA: Prepare for full cavity searches during Thanksgiving weekend
96%. Why unhappy Democrats can't primary Obama
Liberals posting GAO article about health care reform deficit savings are just full of it.
Yes, we have a spending problem.
Tax cuts for the rich just not a big deal
State Dept spending went up 41% this year
Sarah Palin will be our next President
Obama the Muslim
THIS is what climate change is all about...
Explaining the 2010 Election
Would Sarah Palin make a great President?
We are Greece in a few years
Pelosi fired herself
Bernanke+Obama are tanking the US dollar
Angle and O'Donnell losses best thing for GOP
Bush v. Obama deficits
Recession has been over for 17 months now
Obama's international friends?
HuffPost: Obama failed
Obama doesn't care about leftists or middle class
Valerie Jarrett is Obama's chief adivser
Obama aloof, inexperienced
Obama golfing again
Facts about the Boston Tea Party
I know, you don't really like Republicans
Chris Dodd wrote the financial reform bill in the Senate. Who donates to his campaign?
Too Big To Fail? Bailout is WRITTEN into Dodd Financial Reform
Financial reform ineffective
Financial Reform didn't stop derivatives
Health reform to WORSEN doctor shortage
Doctors limiting new Medicare patients because payments are too low
Obamacare either MASSIVE cuts to Medicare or MASSIVE deficits
Japan's looming debt
Deficits were fixed after WWII because the war was over
Debt growing at 10% of GDP per year? Not sustainable
Debt above 90% is a drag on growth
CBO shows highest debt % since WWII
Historical Percentage of Revenue by Source
Waste of stimulus
State debt: states are borrowing more
How exactly did this stimulus bill grow the economy?
Record number in govt anti-poverty programs
Dems love the misery of the Great Depression
Dems prosper as economy tanks
Democrat promises killed our economies
Mother jones admitting pensions are a problem
States need to go broke
Federal workers earning DOUBLE their private sector counterparts
Obama bails out state unions
SS/Medicare liabilities $4.3 trillion
Time is running out for the West
Krugman says we don't have a debt problem
SS/Medicare admit THEMSELVES we have a problem, while liberals continue to deny we have one
Medicare admitting Health care reform deficit savings is a SHAM
Obama's 10-year interest payments: $5.6 TRILLION
Obama's 10-yr deficit: $9.7 trillion
Why the SS Trust Fund is meaningless
Social Security ran a deficit this year
Largest cut for Bush tax cuts
Obama's tax cuts vs. Bush tax cuts for the rich
Facts about the Bush tax cuts