Republicans in Congress screwed up big time in voting for President Barack Obama’s tax hike on Americans. All in the name of letting Obama “have his way” in sticking it to the rich, the deal to avert the country’s cliff dive doesn’t do anything but stall the country’s fall for another two months. Republicans, yes, REPUBLICANS, voted for the first time since 1991 to raise taxes on Americans, a lot of taxes and postponed dealing with the $1.2 trillion sequester, cuts to government spending, until February 2013.
There are no government cuts in this bill, making it nothing more than a license for Obama to keep spending on programs we can’t afford. That’s why our debt is $16.4 trillion and counting. Our yearly deficits are running $1 trillion. Entitlement spending for the big three -- Social Security, Medicare and Medicaid -- accounts for 50 percent of government spending. Meanwhile, the Congressional Budget Office concluded entitlement spending in the next 75 years and other mandatory spending will be responsible for virtually 100 percent of our deficits. In other words, spending on government programs is bankrupting the country yet the president won’t stop, shamming Republicans into feeding his addiction.
The clifftastrophe bill, as I call it, brokered by Senate Minority Leader Mitch McConnell with Vice President Joe Biden, didn’t just kick the can down the road but into oblivion. It passed first in the Senate then House Speaker John Boehner, who said all year he refused to raise taxes on the American people, couldn’t wait along with 84 other Republicans in the House to join 172 Democrats and do just that.
The tax increases targeted at higher earners is estimated to raise a paltry $600 billion over ten years, which amounts to $60 billion a year. This pays about 5 percent toward the yearly $1 trillion deficit’s Obama’s has been running since he became president. Obama’s tax assault on the “rich” amounts to little more than spitting in the deficit wind.
Here’s a menu of some of the tax hikes born solely by one group of Americans. Individuals earning $400,000 and couples earning $450,000, their tax rate will increase from 35% percent to 39.6 percent and these same people will have the good fortune of paying a higher capital gains and dividend tax up from 15 percent to 20 percent. The personal exemption tax of $3,800 in 2012 will be ELIMINATED for those making $300,000 or more.