Thursday, November 29, 2012

Republican and Democratic Fiscal Cliff Solution Doublespeak "Solutions"

George Orwell would be proud.

Politico reports:
 Kevin Smith, Boehner’s communications director said: “We have no intention of increasing tax rates. Doing so will hurt small business and destroy jobs.” 
Boehner told his conference in a closed-door meeting Wednesday morning: “We’ve staked out a principled position. It’s important that everyone in this room continue to be clear with our constituents about what that position is: We’re fighting for spending cuts. We’re fighting against increases in tax rates that destroy jobs. And we’re fighting for pro-growth tax reform and entitlement reform, the keys to economic growth.” 
So what does this "fight against increases in tax rates" really mean. The payroll tax will go up and take a 2% bite out of nearly everyones paycheck. On top of payroll tax increase, taxes collected will go up in the area of another $1.2 trillion---at least.

For the most part, these tax increases will not be increases in the nominal tax rate, but will be increases the amount of income that is taxed. Bottom line: It is an increase in the real tax rate disguised in various ways. The reality is that higher taxes on carried interest and probably capital gains and dividends for sure, and either a cap on total deductions for high earners or some form of a minimum tax rate for them will be in the mix.

But don't think these grand taxers aren't also cutting government spending Here's Politico on that:
Democrats want most Medicare and other entitlement savings to kick in between 10 and 20 years from now...Democrats will point to the precedent set by House Budget Chairman Paul Ryan (R-Wis.) of pushing most mandatory savings off until a decade from now.
Yup, you read that correct. Taxes will be increased starting in 2013, and Democrats want cuts to Medicare and other entitlements to start 10 years later.

So there you have it, the headline will read: No Increases in Tax Rates and Trillions in Government Spending Cuts. This translated will mean: The amount of taxes you actually pay will go up AND government spending will go on along its merry way.

3 comments:

  1. Yeah, let's raise taxes during a depression. Should work wonders for the economy.

    We're being led by morons.

    ReplyDelete
    Replies
    1. An insult to morons.

      Delete
  2. **TRANSLATION**

    They're peeing on your leg and calling it rain.

    ReplyDelete