The special-interest tax breaks Obama demanded look to be bigger than the money he raised by taxing the rich. If he had just let all these special tax breaks expire — like wind tax credits, algae subsidies, and railroad track maintenance — it would have raised more revenue than his tax hikes on rich individuals and small businesses.
Speaking of paying their fair share, that just applies to people who don't have the right political connections. Those who do don't just fail to pay their fair share, they glut themselves with taxpayer money, stuffing it into their pockets and then waddling around Washington D.C. with it while their Buddy-in-Chief gives another speech about how 'other' rich should pay more.
The "fiscal cliff" legislation passed this week included $76 billion in special-interest tax credits for the likes of General Electric, Hollywood and even Captain Morgan. But these subsidies weren't the fruit of eleventh-hour lobbying conducted on the cliff's edge -- they were crafted back in August in a Senate committee, and they sat dormant until the White House reportedly insisted on them this week.
General Electric and Citigroup, for instance, hired Breaux and Lott to extend a tax provision that allows multinational corporations to defer U.S. taxes by moving profits into offshore financial subsidiaries. This provision -- known as the "active financing exception" -- is the main tool GE uses to avoid nearly all U.S. corporate income tax.
Not that GE likely even needed it when its CEO Jeff Immelt heads up Obama's Council on Jobs and Competitiveness and there's nothing as competitive as getting the inside track.
So what's the net gain from taxing the rich? There's no net gain. It's a net loss.
Think about this: just the business and energy tax extenders reduce federal revenue by $67.7 billion in 2013. The tax hikes on the rich Obama won — higher rates on those over $400,000 and reduced deductions on those over $250,000 — raise $620 billion over a decade. As far as I know, we can safely guess that this would be less than $62 billion in 2013.
Unless I’m missing something, the special-interest tax breaks Obama demanded look to be bigger than the money he raised by taxing the rich. If he had just let all these special tax breaks expire — like wind tax credits, algae subsidies, and railroad track maintenance — it would have raised more revenue than his tax hikes on rich individuals and small businesses.
Sure and Putin could just stop collecting bribes and muggers could just stop mugging people on the street.
This wasn't about fairness, it was about unfairness. It was about writing that unfairness into law. It was about one hand washing the other and corruption corrupting the system further.
It was about Obama being Obama and big government being big government