President Obama’s tax plan is simple. It’s a proven method that stimulates growth by putting money into the pockets of people who spend it, not those who hide it in off-shore bank accounts.
Increase taxes on the wealthy. Bring capital gains taxes back to where they were when Clinton balanced the budget. Charge higher fees to Wall Street tycoons who will inevitably be the cause of the next Great Recession. Stop the trust-fund loophole that allows the rich to pass their money down from generation to generation tax-free.
These measures, which are nothing more than asking the wealthy to stop hoarding and pay their fair share, are necessary so the middle class can have a much-needed tax-cut in trying times.
As the economy recovers, expendable income becomes the best and most natural way to grow our GDP. In a 2012 study, economist Owen Zidar came to this conclusion:
Almost all of the stimulative effect of tax cuts results from tax cuts for the bottom 90%. A one percent of GDP tax cut for the bottom 90% results in 2.7 percentage points of GDP growth over a two-year period.
Do you hear that GOP? Tax cuts for the bottom 90% result in a direct increase of our gross domestic product. What happens when that money is instead invested tossed into vaults in the Cayman Islands? Zidar explains:
The corresponding estimate for the top 10% is 0.13 percentage points and is insignificant statistically.
Nothing. Nothing happens. The rich get richer, nobody else benefits, no jobs are created, politicians get lots of campaign donations.
Paul Ryan weighs in lies through his teeth, calling tax breaks for the middle class “tax hikes.”
This is standard GOP rhetoric. Completely ignore the fact that the President wants to give tax breaks to the working middle class and instead call his ideas a “tax hike,” protecting those you serve.
Ryan’s spokesman, in a public statement, continued the delusion of trickle-down economics and called yet again for a “flatter” tax code:
This is not a serious proposal. We lift families up and grow the economy with a simpler, flatter tax code, not big tax increases to pay for more Washington spending.
Whoa Nellie, he sure did tell us, didn’t he? We lift families up by taking away their mortgage and education deductions so the wealthy can pay a lower tax rate and fees to their accountants? Of course he had to throw in “government spending.”
According to Pinnochio Ryan, whose aides had to call the fire department as smoke began billowing from his trouser region, tax cuts for working families equals tax hikes and government spending.
Paul Ryan and the GOP are outdated. Their trickle-down philosophy has created the largest period of wealth inequality in American history.
From Saint Ronnie right down to Dubyah with a brief Clinton-inspired reprieve, Republicans have lied and cheated their way to power positions for nearly four decades on the green backs of the almighty dollar.
Shame on you, Mr. Ryan. Do the right thing, admit that you have zero experience dealing with real-life finance, form a “House Ways to Corrupt Our Future” committee with a little transparency and show the American people just what you’re all about.
H/T: Politicus | Image: ethunter1.blogspot.org
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