Activists in the Democratic party are gearing up to counter disturbing signs that a bad budget deal is in the works, trading small rises in the marginal tax rates for the top 2% (smaller than the already small raises envisaged) in return for reductions in Social Security and Medicare. [Read more…]
The Democratic party has long been perfecting the art of whipping up populist rhetoric to win elections and then finding ways to sell out its supporters to benefit the oligarchy. They methods have become so transparent that Glenn Greenwald has identified the six stages by which they do so. [Read more…]
One of the astonishing things about the so-called ‘fiscal cliff’ negotiations is how many politicians and people in the media talk of raising the marginal income tax rates on the highest earners by a small amount as a quid pro quo for raising the retirement age for Social Security (currently 67 for those born in 1960 and later) and the eligibility age for Medicare (currently 65). They seem to treat those as if they were somehow equal-valued chips in a game. [Read more…]
I have learned to be very wary when politicians describe a situation in apocalyptic terms. It is usually accompanied by demands that we must act now, now, now, immediately or things will fall apart and all manner of horrible consequences will ensue. This is usually a device to stampede people into accepting things that they would reject if allowed to think things through and explore all the consequences. [Read more…]
The Republican party has managed to paint itself into a corner with its adamant stand against an increase in the marginal rates for the top 2% of income earners, even though that was the signature issue that Barack Obama campaigned on and won, and polls show consistent and considerable support for it. The party is now faced with finding ways to get around what is clearly a weak position and various proposals are circulating that would supposedly raise the same amount of revenue as a marginal tax rate increase and provide them with a face-saving compromise. [Read more…]
It is commonly acknowledged that China is the nation that presents the greatest challenge to the US as a geostrategic power. But while the US has chosen to go the route of displaying military muscle to preserve its dominance, China has quietly set about building friendships with nations by helping them with large development projects. [Read more…]
The Freedom From Religion Foundation has sued the IRS for not auditing the tax-exempt status of churches that are openly supporting candidates in elections in violation of IRS 501(c)(3) rules that govern such bodies. You can read the lawsuit here. [Read more…]
One of the extraordinary but little remarked comments that Mitt Romney made during the second debate was when, asked specifically what deductions he would eliminate in order to pay for his tax cuts (that would cost $5 trillion over ten years), he again avoided being specific but said: [Read more…]
During the campaign and the debates, whenever the Romney-Ryan camp has been repeatedly told that there is no way that they can find ways to balance the budget if they give an across-the-board cut in the marginal tax rates by 20%, unless they raise taxes on the middle class in other ways, such as eliminating the deductions that benefit that group more. They have countered that six studies have shown that it can be done. [Read more…]