How many of you guys heard that leadership held firm on the No Tax Increase requirement? I know I did. I almost gave Boehner the credit for keeping that door shut. I even said, “Well at least the teahadists brought enough pressure that there are no tax increases and they are at least discussing a balanced budget amendment.”
Why did I think that? Well, because the lying sacks of poop said it, that’s why.
I should have known. You’d think I just fell off the cabbage truck. If there’s one thing that is absolutely carved in stone, it is that politicians lie and can’t be trusted with anything. Nothing. Not the china, not the silver, not your savings, not even the chamber pot.
How many of you guys knew that the new budget deal essentially makes it impossible for them to stop the automatic tax increases Democrats baked into the cake when they demanded an expiration date for GWB’s tax cuts? Yes, that’s right. The last time they were going to expire, there was a lot of pressure not to raise taxes right in the middle of a recession, so they extended them. None of them wanted the blame for raising taxes. Next time the expiration date rolls around, they’ll not “be able” to do anything. They can blame The Commission™ and The Commission™ will have no choice because current law is now baseline and current law has a tax increase hanging over our heads at all times.
The only way these automatic tax increases will not kick in is if The Commission™ cuts over a trillion dollars from the budget, then Congress can postpone the increase again. But of course, if they can’t cut that much they get the automatic tax increase and as a bonus, they get automatic cuts to the military and to Medicare.
The cuts will not be to users of Medicare (unless you consider the loss of adequate medical care a cut). No, that would not be ‘fair,’ the agreement proscribes cuts to those rich doctors and those rich hospitals taking care of Medicare patients, calling them reimbursement reductions.
But we’re going to trust them to do the right thing and cut extraneous spending, right? There’s no way Democrats would ever allow tax increases, military cuts, and Dr./Hospital cuts, is there? That’s surely plenty of incentive for them to cut spending, isn’t it? And my Nigerian prince is going to send me a million dollars any day now.
Additionally, though the personal tax rates are set (yes, higher) under this scenario, corporate and business tax increases are fair game. Well, we all know there’s no way the Democrats would ever demand any increases in those taxes, would they? :cough: Corporate jets / oil and gas / carbon dioxide :cough:
Let’s just mention one more thing…The CBO will score the tax increase as if it will have no impact on the economy when they are deciding whether or not the projected deficit is sufficiently under control to comply with these triggers. In other words, if they double our tax rates, the CBO will compute the projected budget as if tax collections would double. If they triple it, projected receipts will triple.
No tax increase will ever affect economic growth, taxable activity, or tax reporting. It’s one of the reasons we can never get a tax cut through; according to budget rules (and the ignorant press which reports this foolishness as if it were fact) a 10 percent tax cut means ten percent lower tax revenues, because they are not allowed to consider any changes to behavior based on tax rates.
So, when they compute the projected deficit in the years in which tax rates are going to go up, they are going to assume that the economy is going to percolate right along as if nothing ever happened and that tax receipts are going to go right up along with rates.
And those people in DC think I’m living in a fantasy land. I think Congress deserves their 6% approval rating. No, actually, they don’t even deserve that much. What they deserve is to be tarred, feathered, and thrown from the dome.