Quote of the Day
Don't be afraid your life will end; be afraid that it will never begin.
Grace Hansen
Bonus Quote: Thumbs UP!
"We do not honor their lives by denying the very constitutional rights they died protecting. We honor their lives by defending those rights—and the freedoms that the terrorists attacked."
Michael Bloomberg, talking about fallen American heroic soldiers in reference to the mosque controversy
Congressman Charlie Rangel: CENSURED: Thumbs UP!
Majority of Dems Vote to Reduce to Punishment to Reprimand: SHAMEFUL!
Some 143 Democrats voted to water down penalty for Rangel's long list of ethics violations to a mere reprimand; this unconscionable precedent and double standard would have undermined the integrity and credibility of the ethics committee. However, the final vote was 333-79.
Mr. Rangel, you may have served honorably during the Korean conflict, but your service in the Congress started much after that. The things that you have done, as specified in the ethics committee findings, have dishonored the Congress and our country, which you and your buddies, including those whom never came back alive, valiantly fought to defend. It's time to step down; you have served more than 4 decades. You need to put your constituents and your country above your own personal ambition.
House of Representatives Plays the Class Warfare Card on Taxes: Thumbs DOWN!
In my judgment, there is something intrinsically dishonorable about one group of people saying that the other group doesn't have a right to the fruits of their own efforts. In yesterday's post, I embedded a CAGW video that pointed out the highway trust fund has been used for things beyond highways and bridges; that's why they oppose a proposed hike in the gasoline excise tax. It's not that they object to legitimate repairs but the fact the money is not spent as advertised.
When we talk about increasing the marginal rate from 35% to 39.6%, we are talking about a federal rate that exceeds the corporate tax rate, which itself is the second highest among the developed countries. (The fact that the income of many small businesses is reported on individual tax returns explains why the GOP has been stressing the point; the Democrats have been left with the lame counter-argument that many small businesses don't do well enough to reach the top tax level, which logically leads to the point that a small business should succeed, but not too well.) State, county and/or local taxes can raise the aggregate tax bite to better than 50%. The 13% extra tax income by going back to the Clinton tax hikes would have otherwise been mostly invested in the private sector economy, providing a basis for business expansion and more jobs.
The vote today was just playing politics as usual: 234-188 with less than a handful of GOP votes, voting for all the Bush tax cuts EXCEPT for the top 2%. The Democrats have had 4 years in power to address tax rates for January, but the first time they hold a vote is today, just 4 weeks before reversion to the Clinton tax rates. Never mind those terrible middle-class tax rates just happened to be passed by a Democratic Congress early in the Clinton Administration.
We already know that 42 GOP senators have already pledged to filibuster the Class Warfare Tax Act and so today was all a political game. In fact, we already know that there are negotiations going on with the Administration and a small bipartisan group of negotiators. There is some speculation about a temporary extension of all the Bush tax cuts as part of a deal for additional unemployment funding. However, there are some reports that the Administration is trying to get funding for another $70B in stimulus relief.
Majority Leader Harry Reid (D-NV) has decided to schedule 2 votes for Saturday, basically the first similar to what the House passed today and another by Schumer (D-NY) which "compromises" by raising the income threshold for the Clinton top tax rate of 39.6% to $1M.
These votes (today's and Saturday's) are purely political. The Democrats want Republicans on the record opposing middle-class tax "cuts" (actually, it's an extension of the status quo). It's not at all clear that the class warfare argument plays that well; if the Dems thought the class warfare rhetoric was a winning issue, they would have played that card before the election. In fact, Frank Luntz on Fox News Channel today discussed a poll taken recently that showed 61% of Americans wanted ALL the tax cuts extended. I've seen other polls where the class warfare tax won a plurality, but not majority of those polled. But the point is this: a significant proportion of American workers, far more than the 2% whom would be subject to the 39.6% tax bracket, believe that the tax cut extension should be fairly applied, not picking winners and losers: we must not penalize success.
We are hearing the same old, same old partisan rhetoric from the Democrats. With a mediocre recovery, which I and others believe is a consequence of Democratic meddling and resulting uncertainty regarding taxes and regulations and with trillions already on the sideline, President Obama and the Democrats have obviously not learned the seminal lessons of last month's election. With a capital gains tax increase from 15% to 20% and the reduction of investment dollars from the marginal tax hikes (among other things), President Obama and his fellow progressives are once again showing how clueless they are about business and the economy, doing the opposite of what they should be doing, all for the sake of political ideology. No wonder NYC Mayor Michael Bloomberg has blasted Obama for broken promises and an administration without business-oriented advisors.
Political Humor
"The miracle of Hanukkah is that there was only enough oil to keep the menorah lit for one night and it lasted for eight nights. As far as religious miracles go, it’s not exactly the resurrection of the Easter bunny, but it’s fun for the kids." - Jimmy Kimmel
[Well, as soon as President Obama heard the story behind Hanukkah, he ordered the CEO of Government Motors to develop a hybrid that sips gas like miracle oil, codename "Menorah".]
"President Obama received 12 stitches in his lip after being elbowed in the mouth during a basketball game. Out of force of habit, he blamed George Bush." - Jay Leno
[Well, when President Obama was just beginning to play golf and someone asked him if he had shot a birdie, Obama reminded him that he was not one of those Midwesterners clinging to their guns or religion.]
Musical Interlude: Holiday Tunes
Donny Hathaway, "This Christmas"
