Putting the tax in tax-and-spend liberalism

By Michelle Malkin  •  July 25, 2010 09:52 AM

As they say in the military: BOHICA.

On ABC’s This Week today, tax cheat Treasury Secretary Tim Geithner championed the expiration of the Bush tax cuts and pooh-poohed the economic impact of tax hikes on the highest earners in the country. It’s “responsible” to punish the wealthy, he argued.

Because after spending America into oblivion, Team Obama now wants to show the world that we are “willing as a country now to start to make some progress” on deficit reduction.

On NBC’s Meet The Press, Geithner crusaded for raising the capital gains tax rate.

Then, to show his commitment to fiscal responsibility, he said the administration is going to kick the can again on behemoth fiscal black holes Fannie Mae and Freddie Mac:

Speaking on NBC News’ “Meet the Press,” Geithner says he supports allowing the top capital gains tax rate to revert to 20 percent. It’s 15 percent now.

He also addressed the future of Fannie Mae and Freddie Mac, the mortgage buyers whose bailout has cost taxpayers $145 billion so far. The financial overhaul didn’t address their future.

The Obama administration has said it wants to wait until next year to determine their future.

“I think we’re not going to preserve Fannie and Freddie in anything like the current form,” Geithner said on “Meet the Press.” “We’re going to have to bring fundamental change to that market.”

Investor’s Business Daily makes clear that it is not just the “rich” who will pay for Obama redistributionism:

Through the end of this year, the federal estate tax rate is zero — thanks to the package of broad-based tax cuts that President Bush pushed through to get the economy going earlier in the decade.

But as of midnight Dec. 31, the death tax returns — at a rate of 55% on estates of $1 million or more. The effect this will have on hospital life-support systems is already a matter of conjecture.

Resurrection of the death tax, however, isn’t the only tax problem that will be ushered in Jan. 1. Many other cuts from the Bush administration are set to disappear and a new set of taxes will materialize. And it’s not just the rich who will pay.

The lowest bracket for the personal income tax, for instance, moves up 50% — to 15% from 10%. The next lowest bracket — 25% — will rise to 28%, and the old 28% bracket will be 31%. At the higher end, the 33% bracket is pushed to 36% and the 35% bracket becomes 39.6%.

But the damage doesn’t stop there.

The marriage penalty also makes a comeback, and the capital gains tax will jump 33% — to 20% from 15%. The tax on dividends will go all the way from 15% to 39.6% — a 164% increase.

Both the cap-gains and dividend taxes will go up further in 2013 as the health care reform adds a 3.8% Medicare levy for individuals making more than $200,000 a year and joint filers making more than $250,000. Other tax hikes include: halving the child tax credit to $500 from $1,000 and fixing the standard deduction for couples at the same level as it is for single filers.

Tip of the iceberg. Be sure to click through for the rest of the tax tsunami to come.

***

Via GOP leader John Boehner’s office:

Treasury Secretary Timothy Geithner and Speaker Nancy Pelosi (D-CA) delivered a 1-2 punch to America’s small businesses today by signaling that their taxes will soon go up. As The Wall Street Journal notes, these comments come “as a number of Democrats, including North Dakota Sen. Kent Conrad and Nebraska Sen. Ben Nelson, have begun echoing calls by Republicans and some economists to extend the tax cuts for all earners… Many economists believe the recovery is too fragile to risk raising taxes anytime soon and that doing so could stall economic growth.”

Both the National Federation of Independent Businesses (NFIB) and the National Association of Manufacturers (NAM) have warned against such a tax hike. NFIB tax counsel Bill Rys said, “The businesses that are most likely to be hit by this tax increase employ about a quarter of the U.S. work force.” And, according to NAM’s data, 196,000 manufacturers – a full 68% of all American manufacturers – file taxes as individuals; these taxpayers had an average taxable of income well above $250,000, suggesting a large negative impact on manufacturers as well.

At his weekly press briefing, House Republican Leader John Boehner (R-OH) said that Americans are still asking ‘where are the jobs?’:

“For 18 months, we’ve had a government that believes that change is only possible by passing 2,000-page, trillion-dollar monstrosities, and one after another. Americans are still asking the question ‘where are the jobs?’ and all President Obama has to offer them is more stimulus spending, more debt, higher taxes and more job-killing regulations.

“The financial regulatory bill that the president signed this week is just another big-government power grab that will make it even harder to create jobs. It provides for permanent bailouts to President Obama’s Wall Street allies at the expense of small businesses and community banks across our country. Frankly, it’s just more of the same.”

The Dems think class warfare will be a winner at the polls. No, really.

More “show the world” rhetoric:

In recent days, fiscal conservatives like Senators Kent Conrad of North Dakota and Evan Bayh of Indiana expressed support for extending the tax cuts at all income levels, at least temporarily.

Senior administration officials said there was no interest in such a plan at the White House, which intends to have Treasury Secretary Timothy F. Geithner lead an effort to make the case that continuing tax breaks for the rich will not help lift the economy, but eliminating them will help reduce the deficit.

“We do not buy into the theory that because the economy is still recovering, extending tax cuts for the highest earners is a necessary or effective policy response,” said Gene Sperling, counselor to Mr. Geithner.

“While we are supporting measures like small-business lending and tax cuts to spark growth,” Mr. Sperling added, “it is also important to show the world that we are following through on our commitment to long-term fiscal discipline.”

***

Video flashback – The Taxman Cometh:

My tax advice: Remember in November.

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Comments


  1. #101
    On July 25th, 2010 at 8:14 pm, happy2behere said:

    sorry – I meant “your words are right up his alley,” my ‘cut and paste’ thingy missed.

  2. #102
    On July 25th, 2010 at 8:23 pm, granite said:

    On July 25th, 2010 at 5:05 pm, jsmiddleton4 said:

    “is and always has been a Muslim.”

    Want to be careful there. Being Muslim should not disqualify him from being President. Lying about being Muslim however certainly does.

    In the ideal world, where one’s choice of religion is no more dangerous to one’s nation, and to the world, than one’s preference in ice cream flavor, you might have a point.

    However, given the reality of the situation, the threat, and the enemy bent on our destruction, that we in Western Civilization now face; with all due and sincere respect, you yourself unfortunately might “want to be careful there”.

  3. #103
    On July 25th, 2010 at 8:30 pm, rambler said:

    The economy is recovering is Bho’s creative visualization working over time. Just because he says it, doesn’t make it so. Bho doesn’t let the truth get in his way when he needs to make a point.

  4. #104
    On July 25th, 2010 at 8:43 pm, rightisright said:

    You folks think you have freedom, but you don’t

    that’s quite an assumption on your part knowing my thoughts as to what I think, since I didn’t say anything about losing freedoms, as you pointed out, correctly by the way. Be careful when painting, make sure your using the proper size brush.

    “end of America as we know it.”

    Again I must disagree.

    you as txvet2, suggest you know what I’m thinking, you don’t.

    I noticed you don’t want to tell me how America will react with 6 more years of this political thievery that’s going on. I say it will become ugly, the American people as a whole will not go easily.
    Why do you argue that, it’s true, it’s human nature, what do think brought the pilgrims here in the 1st place if it wasn’t for looking for freedom and a better life.

    Secondly, it is the America that we “know” that is the America we work for even today to keep alive and well. That reality does not change no matter who is in power nor what our circumstances are.

    I’m not about to try and read your mind, but I think we’re saying the same thing with the exception “reality” does change you said so yourself in your 1st paragraph telling how America has changed in regards to slavery. Was slavery not reality?

  5. #105
    On July 25th, 2010 at 8:53 pm, John Deaux said:

    On July 25th, 2010 at 4:20 pm, rightisright said:

    Hey rightiswrong, I probably vote to the right of you – Alan Keyes over Comrade Bush in 2000, for instance.

    Like I said, fools like you vote…have some more drugs, maan.

    Phil’s gonna love this guy.

  6. #106
    On July 25th, 2010 at 9:20 pm, rightisright said:

    On July 25th, 2010 at 8:53 pm, John Deaux said:

    If i understand you correctly, I agree.

  7. #107
    On July 25th, 2010 at 10:06 pm, txvet2 said:

    On July 25th, 2010 at 8:43 pm, rightisright said:

    Don’t make more of a generalization than it merits. I could have as easily said “A lot of folks” or “Some folks”, and not changed the intended meaning a bit.

  8. #108
    On July 25th, 2010 at 10:23 pm, On-my-soap-box said:

    BOH = LGM?

  9. #109
    On July 25th, 2010 at 11:36 pm, NJ-Aviator said:

    Geithrnet says….

    Doing so would show the world that the U.S. is “willing as a country now to start to make some progress” reducing long-term budget deficits, he said.

    How could one man possess this much stupidity?

    Show the world?

    How about these A-holes show Americans they are not out to trash our country?

    And make progress on reducing the deficit by sticking us with the bill for all the crap they’re spending the money we don’t have? That’s their answer?

    Cut the spending. That’s how you balance the budget.

  10. #110
    On July 26th, 2010 at 12:03 am, Republicanvet said:

    Only the NY Times could publish something like this that has zero connection to reality.

    In recent days, fiscal conservatives like Senators Kent Conrad of North Dakota and Evan Bayh of Indiana expressed support for extending the tax cuts at all income levels, at least temporarily.

    Conrad and Bayh fiscal conservatives? Perhaps a look at what they have voted for just since Urkel was immaculated should put that stupidity to rest.

    …and it states clearly “temporarily”, which means they are not all that fiscally conservative…just long enough to get re-elected.

    Senior administration officials said there was no interest in such a plan at the White House,

    Of course not! These raging nitwits have no interest in jobs or the economy.

    which intends to have Treasury Secretary Timothy F. Geithner lead an effort to make the case that continuing tax breaks for the rich will not help lift the economy, but eliminating them will help reduce the deficit.

    This clearly shows what their intent is. Raise the taxes and blame the right, capitalism and anything else that fits in their class warfare schtick to win elections.

    Here’s a clue! Get that egg-head jackass and every other leftist to pay their damn taxes!

    Here’s another clue. Get those same leftists to stop throwing away billions on whatever special interest they think might help get them elected.

    Typical of these b@st@rds to NEVER look at cutting their spending, but first looking at squeezing taxpayers ever more.

    “We do not buy into the theory that because the economy is still recovering, extending tax cuts for the highest earners is a necessary or effective policy response,” said Gene Sperling, counselor to Mr. Geithner.

    ….and we don’t buy into your theory that taxing and spending and repeating every has helped an economy grow.

    “While we are supporting measures like small-business lending and tax cuts to spark growth,” Mr. Sperling added, “it is also important to show the world that we are following through on our commitment to long-term fiscal discipline.”

    Awwwww. Leftists wanting to show the world again. Didn’t we get that with the “improve our image” whining before the election?

    You want to show the world? or do you want to show China?

    You want to show them discipline, get control of those criminals in Washington.

    THANK YOU so much for you stupid people who were so gullible to vote for HopenChange! Here’s hoping you are the ones unemployed!

  11. #111
    On July 26th, 2010 at 12:07 am, Member-VRWC said:

    The formula is real simple: more taxes = less jobs.

    So if the Bush tax cuts expire, look for more stimulus to the economy in the form of more people collecting an unemployment check (thank you Madame Botox).

    In addition, Geithner’s got a lot of balls to be talking about the rich paying more taxes. He’s rich and we all know he didn’t pay his fair share as required by the law even at the lower rates that were in effect when he cheated. Talk is cheap, Timmy, you low-life d-bag.

  12. #112
    On July 26th, 2010 at 8:07 am, ITookTheRedPill said:

    A good time to review this:

    Video: Obama’s redistributionism on capital gains taxes
    posted at 1:40 pm on April 17, 2008 by Ed Morrissey

    SENATOR OBAMA: Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness…

    MR. GIBSON: But history shows that when you drop the capital gains tax, the revenues go up.

    SENATOR OBAMA: Well, that might happen or it might not…

    Read and listen very carefully to this. The higher priority for Obama isn’t to raise revenue; it’s to ensure fairness. In order to do that, he will have the government take a bigger share of the gains and redistribute them through social programs to others. The pretense of having more money acts as a veneer for good, old-fashioned redistributionism

    And his example shows his bias. He talks about billionaires paying a different rate than secretaries on income, but that’s purposeful. The idea behind a lower capital gains tax is to encourage risk-taking. The secretary in this parable garners an income at much lower risk because investors have taken a risk in creating her job. When the risk succeeds, it generates much more taxable income across the board. When it doesn’t, the investors lose a lot of money.

    If the risk carries a heavier tax burden, less money will go towards investment. People will instead put their money into safer, less risk-intense areas, such as savings or low-yield bonds and commodities such as gold. That will create fewer opportunities for employment, which translates across the board into less revenue for the government as well as a stalled economy. The surest way to start an economic disaster is to increase penalties for investment.

    Obama’s blindness on capital gains reveals a hard-Left mindset…

  13. #113
    On July 26th, 2010 at 8:26 am, ITookTheRedPill said:

    A few other things to remember…

    Obama’s time as an Illinois state senator is best remembered by him voting “Present”. What did Obama do, other than vote “Present”? Well, Barack Hussein Obama was the sole sponsor of SENATE RESOLUTION 90_SR0110. It’s interesting to note that that was a priority to him.

    Many people are hard-pressed to actually name Barack’s accomplishments in Federal Government as a U.S. Senator. But there is a bill where Obama was the lead sponsor… a bill to “spread the wealth” on a global scale… S.2433 Global Poverty Act of 2007

  14. #114
    On July 26th, 2010 at 9:31 am, jsmiddleton4 said:

    “you as txvet2, suggest you know what I’m thinking, you don’t”

    You seem to have a problem with reading comprehension there right….

    “Was slavery not reality?”

    As further evidence: Your question indicates you don’t seem to be able to follow what “That” refers back to.

    The idea that there was a time in which America was some ideal that we have now lost forever and will never reacquire is false.

    It is false on two fronts.

    One, there was and has never been a time when America had reached some ideal.

    Two, America is and will always be what its citizens work towards accomplishing.

    There is some very infantile thinking about this “America is doomed” stuff. It is that somehow we deserve to have the America we desire handed to us. And if the America that is handed to us is not the America we want then somebody did something wrong to or by us.

    That kind of thinking is the kind of thinking spoiled brats live there life’s by.

    All this doomsday, America is ended, we’re all going to be communist stuff is just crap and has no place in the mindset of anyone who calls themselves “conservative”.

    The work in front of us is no different than the work each generation faced. The amount of work required of us now is in part due to the previous generations NOT being diligent and staying on top of what is natural of human beings. It is somehow natural that human beings want bigger government and socialism. History is full of the truth of it.

    In our founding documents our founders were wise enough to acknowledge this truth, caution us regarding it and establish a government that could be abolished if we the citizens found the government to have falling into this trap.

    There is nothing new about what faces us. Nothing permanent about any of what Obama has done. The sky is not falling. We are not going to be dragged from our homes by armed SEIU thugs.

    We need to get busy, support and work for conservative candidates, teach, lead, encourage and VOTE. Not just in 2010. But for the rest of our lives.

    America is not ending.

  15. #115
    On July 26th, 2010 at 9:43 am, Danceswithdachshunds said:

    You cannot ‘punish’ the rich with high taxes. The rich will simply cut back on their investments if the government is going to take more of the profit away from what those investments were for.

    The poor don’t pay any taxes so they don’t suffer tax cuts or increases.

    So who is punished? It is ALWAYS the middle working class that gets punished by tax increases whether they pay or not because reduced investment kills jobs just as much as reduced consumption.

    Wealth, born of free capitalism which produces a SURPLUS, is what made the USA who we are. Attacking wealth itself is an attack on ALL of us.

    Impeach Obama now!

  16. #116
    On July 26th, 2010 at 10:02 am, ITookTheRedPill said:

    Danceswithdachshunds,

    I still shake my head at the middle class people who voted for Obama and actually believed they were going to get a tax cut.

    But there’s an even better answer than impeachment…

    If Hawaii can’t produce an initial long form birth certificate, then the “Obama birth narrative” is fraudulent, and Obama is revealled as a usurper. Not only would he be removed from office, but every bill he signed into law, and every nomination he made, would all would be invalidated becuase he never had the Constitutional authority to act as President.

    Even those who believe Obama was born in Hawaii and believe that citizenship of his parents is irrelevant, should still support having members of Congress do their “due diligence” in carrying out their 20th Amendment responsibility to “qualify” the President and Vice-President. Not a single member of Congress requested the long form birth certificate from Hawaii. They all “outsourced” that to the biased and untrustworthy “FactCheck.org”.

    This is a serious issue, and should be treated seriously.

    Members of Congress need to honor their sworn oath to support and defend the Constitution, including the 20th Amendment.

  17. #117
    On July 26th, 2010 at 10:16 am, ITookTheRedPill said:

    Goldman reveals where bailout cash went

    Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public Friday night…

    Goldman had not disclosed the names of the counterparties it paid in late 2008 until Friday, despite repeated requests from Elizabeth Warren, chairwoman of the Congressional Oversight Panel.

    “I think we didn’t get the information because they consider it very embarrassing,” Grassley said, “and they ought to consider it very embarrassing.”

    The initial $85 billion to bail out AIG was supplemented by an additional $49.1 billion from the Troubled Asset Relief Program, known as TARP, as well as additional funds from the Federal Reserve. AIG’s debt to U.S. taxpayers totals $133.3 billion outstanding.

    “The only thing I can tell you is that people have the right to know, and the Fed and the public’s business ought to be more public,” Grassley said.

    The list of companies receiving money includes a few familiar foreign banks, such as the Royal Bank of Scotland and Barclays.

    DZ AG Deutsche Zantrake Genossenschaftz Bank, a German cooperative banking group, received $1.2 billion, more than a quarter of the money Goldman paid out.

    Warren, in testimony Wednesday, said that the rescue of AIG “distorted the marketplace by turning AIG’s risky bets into fully guaranteed transactions. Instead of forcing AIG and its counterparties to bear the costs of the company’s failure, the government shifted those costs in full onto taxpayers.”

    Grassley stressed the importance of transparency in the marketplace, as well as in the government’s actions.

    “Just like the government, markets need more transparency, and consequently this is some of that transparency because we’ve got to rebuild confidence to make the markets work properly,” Grassley said.

    AIG received the bailout of $85 billion at the discretion of the Federal Reserve Bank of New York, which was led at the time by Timothy Geithner. He now is U.S. treasury secretary.

    “I think it proves that he knew a lot more at the time than he told,” Grassley said. “And he surely knew where this money was going to go. If he didn’t, he should have known before they let the money out of their bank up there.”

    An attempt to reach Geithner Friday night through the White House public information office was unsuccessful.

  18. #118
    On July 26th, 2010 at 10:47 am, rightisright said:

    I could have as easily said “A lot of folks” or “Some folks”, and not changed the intended meaning a bit.

    But you didn’t, you, used you, making it specifically me, as I saw it.

  19. #119
    On July 26th, 2010 at 4:04 pm, Danceswithdachshunds said:

    Here’s an IRS 1040 from 1950. The main 1040 is only one page. Schedules A B C D E F G H and I were all on one more page after that and then itemized deductions were on a separate third page.

    Come to think of it, generally speaking back then many more people:
    1. Were honest.
    2. Were happy.
    3. Believed in God and went to church.
    4. Needed only one car for the family.
    5. Had a gun in their house.
    6. Could, with low overall taxation, afford to have one parent stay home and raise the kids.
    7. Had ancestors who immigrated here legally.
    8. Knew and were willing to help their neighbor.
    9. Were taught actual math and science in a public school that enabled them to invent stuff later like computers and spacecraft that got us to the moon.
    10. Would not have put up with 90% of the federal government crap being rammed down our throats today because they had just won WW2 fighting, in part, the very kind of people who come up with such crap.

    To figure out how things will be if we continue down the primrose path that liberals/progressives/commies are taking us – you need only look back at how things used to be.

    (Okay, we live longer than back then but a lot of your ‘extra’ time will be spent sitting around waiting for your next low salt/sugar/fat meal at some assisted care facility that’s sucking your assets dry if you didn’t trust them off to your kids.)

  20. #120
    On July 26th, 2010 at 5:38 pm, ITookTheRedPill said:

    Danceswithdachshunds,

    Good point(s).

    What we see today is the result of decades of Ideological Subversion. Much of it carried out by U.S. citizens like Bill Ayers.

  21. #121
    On July 26th, 2010 at 5:48 pm, ITookTheRedPill said:

    NBC’s Chris Matthews Makes Freudian Slip:
    Will Dems Run Away From “President O’Carter”?

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