tag:blogger.com,1999:blog-4065910512732060865.post1665803609829741952..comments2023-08-07T09:56:04.428-05:00Comments on Better Than Machines: Obama's Preemptive Surrender on Tax Cuts for the WealthyDavehttp://www.blogger.com/profile/11154351095467482965noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-4065910512732060865.post-51970457872575952342011-02-09T16:45:34.390-06:002011-02-09T16:45:34.390-06:00Hey Jared, glad you stopped by! You make a good po...Hey Jared, glad you stopped by! You make a good point that the Bush tax cuts in themselves did benefit more people than just the wealthy. Although, I think they were part of a larger conservative effort to dismantle government. Conservatives today are up in arms to slash Social Security and other programs in part because of the deficits these tax cuts helped create. <br /><br />De-fund government and then claim that the government can't afford to do anything. It's the old "starve the beast" strategy. <br /><br />I hope you keep reading. BTW, I'll be the first reader of your tax blog!Davehttps://www.blogger.com/profile/11154351095467482965noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-87787791037901808072011-01-25T16:23:02.567-06:002011-01-25T16:23:02.567-06:00Hey Dave, it’s your cousin from the lone star stat...Hey Dave, it’s your cousin from the lone star state... don't worry I haven't turned to the right just from being in the middle of the Bible belt, but I am admittedly indifferent to political affiliation. <br /><br />One thing I would like to point out is that, although not a fan of Bush in general, the tax cuts enacted during his administration did benefit a lot more than just wealthy. If the sunset provisions in the tax code for Bush era tax cuts are not extended, the lowest marginal tax rate could reasonably be expected to increase from 10% to 15% while the upper "wealthy" range could go from 35% to 39.6% with small increases in all positions in between. This will affect not only the wealthy but all taxpayers. <br /><br />There is also a current provision that gives preferential tax treatment to long term capital gains. As of now, the maximum tax rate applicable to qualified LT capital gains is 15%, this could go up to 20% if the provisions expire and historically has been taxed at ordinary income levels. This will affect traditional IRA distributions as well as all 401k distributions that were not previously designated ROTH. <br /><br />There are also phase out level decreases that will affect businesses of all sizes but have the largest impact on smaller businesses (I am referring specifically to the limits on section 179 deductions if electing MACRS depreciation).<br /><br />I know it is a boring subject to discuss in a forum which is why I have limited my post to three examples but I would be happy to discuss more if there is anyone else out there who enjoys this type of thing. My point is to not let this decision make or break your opinions of the president. Sure the tax cuts benefit the wealthy, I mean they are reductions in income taxes ergo the highest earners get the most benefit. Let’s not forget that these cuts also benefit middle class America and small business as well.<br /><br />Keep up the good work Dave! I really enjoy your blog. It seems like all the family has one, I’ll have to start one soon. Maybe it could be a blog about taxes Robert J Hinsonhttps://www.blogger.com/profile/15115169585695415190noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-8541004261995667502010-12-10T22:40:31.421-06:002010-12-10T22:40:31.421-06:00Ugh, did you see him trot out Clinton today? Path...Ugh, did you see him trot out Clinton today? Pathetic.Jennihttps://www.blogger.com/profile/03776942311638100226noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-40822029415841574972010-12-08T21:27:14.083-06:002010-12-08T21:27:14.083-06:00Amen indeed. I'm glad to see that other peopl...Amen indeed. I'm glad to see that other people are feeling the same way. I seriously doubt the White House counted on the backlash they're getting over this. For evidence, see today's press conference where Obama's harshest words were reserved for <i>progressives</i>. He was all hot and bothered.<br /><br />Jenni, thanks for bringing up the pay freeze--another example of preemptive surrender that blows my mind. I plan to post on that soon.<br /><br />Melondonkey, you raise an interesting point. It may be that this is all White House grand strategy/three-dimensional chess/voodoo magic. Maybe Obama feels like he has everybody right where he wants them. The right and left are yelling at him, and he's sitting tall and pretty in the middle. Maybe that's right where he wants to be for 2012. <br /><br />However... if that's all his presidency is going to be--a calculating centrist who's main principle is to get reelected--that's not someone that many progressives will care to campaign for in 2012.<br /><br />In other words, if this is political calculation on his part, I think he's miscalculating. I don't think he can win reelection by riding the "center." I think he is taking his progressive base for granted and that that base will disappear if he's not careful. <br /><br />This administration's idea of leadership is pretty strange. On health care, for instance, Obama laid back and let Congress do all the work deciding what the bill would include, which probably weakened the bill and almost lost it entirely. Then on other issues, like these tax cuts, he jumps way out ahead of his party and stakes out strange, unpopular positions.Davehttps://www.blogger.com/profile/11154351095467482965noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-27183293713218640722010-12-08T13:51:14.922-06:002010-12-08T13:51:14.922-06:00I know. And amen to what everyone has said.
Why...I know. And amen to what everyone has said. <br /><br />Why doesn't he fight when the public is with him? <br /><br />I agree with Paul Krugman. The whole thing looks like a moral collapse.Beckyhttps://www.blogger.com/profile/06517252487552392654noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-9919268944942426262010-12-08T11:33:34.161-06:002010-12-08T11:33:34.161-06:00I am completely disillusioned. Where did the Obam...I am completely disillusioned. Where did the Obama who inspired us, who seemed to voice the things we were feeling, go? Like Delaine, I tried and tried to cut some slack, to think that I don't really understand the goings-on-behind-closed-doors in politics and maybe there's something good to come from these compromises that have been happening since he took office. But with this, yet another compromise on an issue that I thought was uncompromisable, I had my first real feeling that I would like to vote for someone else in 2012. Ugh.Veronicahttps://www.blogger.com/profile/13098484108934155881noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-15243825033345503192010-12-08T11:24:43.994-06:002010-12-08T11:24:43.994-06:00Machines,
In some sense, doesn't Obama win po...Machines,<br /><br />In some sense, doesn't Obama win politically out of all this? The media and the blogosphere is exploding with coverage of this deal, which still has the same effect of making Republicans look like protectors of the rich. Meanwhile, Obama comes out looking like a pragmatic thinker to the center. Had he fought the Republicans on this and lost, I bet he would have come out the loser still because, as many have noted, the Republican machine is just better at messaging. <br /><br />However, your post makes a good case that it is part of a pattern of backing down to Republicans rather than a one-off strategic move. As in chess, I always assume politicians are making the most strategic move possible and have not overlooked anything.<br /><br />Also, maybe a Republican caught Obama with a prostitute and promised not to tell as part of the deal.melondonkeyhttps://www.blogger.com/profile/02818146576436658055noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-45937671590216783802010-12-08T09:27:52.793-06:002010-12-08T09:27:52.793-06:00Well, I am steamed, disillusioned, and disappointe...Well, I am steamed, disillusioned, and disappointed with. president Obama. How can it be that a man who captured our imagination and verbalized what many of us were thinking and seemed to have the spark to inspire and lead now seems so adrift? I thought when the public option went nowhere that maybe he was working behind the scenes and things would turn out okay for us. No. At every point you mentioned in the last two years, it seems that Mr. Obama caved or gave in way too quickly. I just don't understand his reluctance to fight the Republicans-especially when their announced strategy since the election of 2008 is to make his presidency a failed one. Of course, it must be said they are more than willing to harm the country in their efforts. This tax cut "compromise " is terrible public and economic policy! The middle class-or what's left of it- should be shouting from the rooftops! He spoke about keeping his eyes on the "long road" instead of the short one. What does that long road promise us now? I am not encouraged. I have cut Mr. Obama a lot of slack in the past. Now I am seriously troubled by his thinking. And choices.delainehttps://www.blogger.com/profile/01519073646760104147noreply@blogger.comtag:blogger.com,1999:blog-4065910512732060865.post-36979781750554569792010-12-08T06:21:58.849-06:002010-12-08T06:21:58.849-06:00I actually slammed my fist down on my laptop when ...I actually slammed my fist down on my laptop when I read this news. I am so furious. What happened here was not a "negotiation." I can't even believe that he just gave everything away like that. I was angry enough last week when he said he was going to freeze government worker salaries for two years, punishing the middle class, in what can only be seen as a symbolic gesture. He'll take $60B away from middle class government workers but won't support generating $700B in new revenue from the wealthy? This is not the man I voted for. I am so through with this guy. When is he going to act like he's in charge over there? When is he going to set a real agenda and FOLLOW IT? When is he going to stop betraying the people who voted him in? I mean what kind of "liberal" extends tax cuts for the wealthy? He's a traitor.Jennihttps://www.blogger.com/profile/03776942311638100226noreply@blogger.com