More tax silliness.
Baltimore Ravens quarterback Joe Flacco, coming off a Super Bowl win in which he also won the MVP award, just locked-in the largest contract ever awarded a professional football player. Flacco signed a six-year contract worth $120.6 million, or an average of $20.1 million per year.
You’d think that if you signed the largest contract ever and will earn the most of any player in the NFL, that you’d also bank the most cash. Well, unfortunately for Flacco, that’s just not true.
President Barack Obama keeps talking about folks paying their “fair share.” It’s nothing but a bunch of mumbo jumbo.
Way back in July 2011 ThinkFY posted this piece about President Barack Obama’s call for the wealthy to pay their fair share during the debt limit stand-off with the House Republicans. It was an appropriate post tackling the whole issue about so-called grand compromises, tax hikes and entitlement reform. Worth a read if you have some spare time.
Now back to business. With the sequester in effect, President Obama and Capitol Hill Democrats continue to call for tax hikes – on top of the $600 billion they already raised at the end of 2012 – it seems appropriate to revisit this false notion that the rich don’t pay their fair share.
Let’s consider some facts just published by The Associated Press that Democrats will find very inconvenient:
The across-the-board spending cuts, known as sequestration or the "sequester," are set to go into effect tonight at midnight. The cuts are $85 billion for the remainder of fiscal year 2013 (which ends in September) and $1.2 trillion overall during the course of the next 10 years.
No one likes these cuts. They were proposed by the Obama Administration and were allegedly designed to force compromise to avert them. Of course no one seems able to find a way forward, thus the cuts will happen.
Part of the reason there is no compromise is the Republican Party refuses to move on the President’s demand to raise more taxes without a complete overhaul of the tax code. Recall, Republicans already agreed to raise taxes by $600 billion to avert the so-called fiscal cliff at the end of 2012.
In about a half-hour from now, President Barack Obama will blast Republicans for not striking a deal to avert the impending spending cuts known as sequestration. The President and his allies will push the theme, once again, that Republicans only look out for the well-to-do and don’t care about the poor and middle class.
“According to a White House official, Obama hopes to aggressively pressure congressional Republicans, depicting the choice over the sequester as one between protecting healthcare and national defense or protecting tax loopholes for the wealthiest Americans.” (Justin Sink, “Obama To Press GOP On Sequester Deal As Deadline Approaches,” The Hill, 2/19/13)
According to a report by Elizabeth Harrington over at CNSNews, New York State “accounted for the biggest migration exodus of any state in the nation between 2000 and 2010, with 3.4 million residents leaving over that period.”
“Over that decade the state gained 2.1 million, so net migration amounted to 1.3 million, representing a loss of $45.6 billion in income.” (Elizabeth Harrington, “Escape From New York?” CNSNews, 5/29/12)
Where are New Yorkers going and why you ask? They’re headed to places like Florida with more “lenient tax” systems and better weather.
In the wake of the widely expected downgrade of America’s credit rating by Standard & Poor’s, Democrats are predictably trotting out their tried-and-true call for tax increases.
“Standard & Poor's decision to downgrade the nation's credit rating reinforces Democrats' call for increasing tax revenue, Senate Majority Leader Harry Reid (D-Nev.) said Friday.” (Jamie Klatell, “Reid: S&P Downgrade Backs Dems’ Call For More Revenue,” The Hill, 8/5/11)
The Great Recession has taken its toll on the country. Unemployment remains at 9.1% nationally. 7.51 million Americans remained on emergency unemployment benefits in June. That doesn’t even include those who have run out of benefits and now sit idly on the sidelines. Nor do any of these figures account for the millions of underemployed.
Yet, despite these horrific numbers, some states have fared better than others. A handful of states have managed quite well in fact, given the circumstances. One, Texas, has weathered the recession as one of the fastest growing states due in part to an economy that is well diversified.
Yesterday, Senate Minority Leader Mitch McConnell (R-KY), Senate Minority Whip Jon Kyl (R-AZ), Senator Lisa Murkowski and others held a press availability after the weekly Republican Policy Lunch. In the presser, McConnell, Kyl and Murkowski pointed out that Democrats are using a bait and switch scheme in the tax extenders bill – a so-called jobs bill according to Democrats – to raid the Oil Spill Liability Trust Fund.
McConnell: “So in effect they're raiding the oil cleanup trust fund in order to try to reduce -- in order to try to pay for the extender package which is on the floor this week. I think the American people think the oil cleanup trust fund ought to be used to clean up oil spills.”
Kyl: “But instead of using it for that purpose, the money then will be used to offset expenses of the so-called extender bill that's on the floor today. That's wrong and all of you, I hope, will help to make it clear that that's exactly what's happening here, so the American people can understand the duplicity of this approach.”
Change you can believe in? The most transparent, open government ever?
President Barack Obama, Democrat House and Senate leaders and Big Labor officials huddled together behind closed doors over the past two days to broker a sweetheart deal for unions in order to get their support to pass government-run health care.
So what concessions did Big Labor get?
Senate Bill Passed On Christmas Eve 2009:
“Under The Bill Passed Last Month By The Senate, The Federal Government Would Have Imposed A 40 Percent Tax On The Value Of Employer-Sponsored Health Coverage Exceeding $8,500 A Year For An Individual And $23,000 For A Family.” (Robert Pear and Steven Greenhouse, “Accord Reached On Insurance Tax For Costly Plans,” The New York Times, 1/14/10)
Today, on a strict party line vote, the House of Representatives voted to “permanently extend a 45 percent inheritance tax on estates larger than $3.5 million, canceling a one-year repeal of the tax set to begin next month. . . . The bill passed by a 225-200 vote, with all Republicans opposed.”
“Permanently Extending The Tax With A Top Rate Of 45 Percent On Estates Larger Than $3.5 Million Would Raise About $14 Billion A Year.” (Stephen Ohlemacher, “House Votes To Extend Tax On Wealthy Estates,” The Associated Press, 12/3/09)
“However, It Would Raise Less Tax Revenue Than Current Law Over The Next 10 Years—An Estimated $234 Billion Less—Because The Tax Rate Would Be Lower In Future Years.” (Stephen Ohlemacher, “House Votes To Extend Tax On Wealthy Estates,” The Associated Press, 12/3/09)