Recently the press Secretary for the President said:
“There can be no deal without rates on top earners going up,” said Carney, who reiterated that the president will not sign legislation that extends the Bush-era tax rates for the wealthy.
The President has drawn his line in the sand and refuses to negotiate unless he gets what he wants… which is not the definition of negotiation. Of course this is the type of negotiation the Democrats have done for the last 4 years and they are thankful for an obedient media that will continue to blame the Republicans for the stand still.
But lets forget the lack of understand what negotiations are for a moment and take a look at the one point the Democrats continue to not budge on, tax increases for the top take rate.
- Top tax rate is on any earned income over $250k/year.
- This tax rate is currently 35%.
- This tax rate under President Clinton was 39.6%.
- By raising this tax rate, as the President has lobbied for, the federal government would receive an estimated $82 billion in 2013.
Now let me point out for a moment that I could not find any information on the President’s website about the specifics of his proposal, only campaign slogans and speeches. So I am going to take him at his word and only look at the increase of taxes on the top tax rate as he has asked for repeatedly.
Our federal government spent an estimated budget deficit of $1.1 trillion, or $1,100 billion (keep in mind that the Senate has not passed a budget in over 3 years). Raising the top tax rate would only bring the deficit down to $1,018 billion, if nothing changes next year. Does this sound like a solution to our budget issues? Keep in mind that raising the tax rate would be removing $82 billion from the economy, which results in less sales taxes to states and less employment for the working class.
If you where spending 133% of your income each year, putting 33% on a credit card, how long would you be able to do this before you where bankrupt? Wouldn’t you think it smart to cut some spending and fund just the essentially? Why can’t the President understand this simple concept?
I understand the President wants to “stick it to the rich” to continue his class warfare game, but it makes no sense. If the President was at all serious about fixing the problem he would stop being so inflexible and he would offer up $1.2 trillion in budget cuts for 2013 (not ten years… one year). Once we get spending under control we can look at where we can increase our income if it is still needed.
I would also say, let negotiate. Offer up $900 billion in spending cuts for 2013 and we can close loop holes in the tax system to raise the other $300 billion (over 3 times the amount of revenue he is asking for). That is how real adults negotiate, I’ll give a little if you give a little, then we both win.