poverty

This deal that Obama has made with the republicans just rubs me the wrong way. I get that he did what he felt he had to do for those American’s struggling the most right now. That is understandable and by itself even admirable. And, if I felt that the republicans had even the slightest good intention, I would feel that the cooperation across the aisle would even be a good sign.

But, I don’t trust the republicans and I know that they will do everything they can to block any legislation that doesn’t benefit corporate America in the future so these efforts are really meaningless.

I have had something in my craw lately about social security.  It is one of the most important fundamental things we provide for our citizens.  Without it, the overwhelming majority of Americans would work their entire lives only to end up unable to keep their homes, take care of themselves or even slightly enjoy their well earned retirement.  And this is the best case, much more likely is that millions of people would be forced into poverty, destitution or worse.

What doesn’t make sense to me is that it has been said over and over again that removing the cap would completely eliminate the problem and instead they are talking about cutting benefits or raising the retirement age.  And in this new tax deal cutting funding to it by an extraordinary amount.  I just don’t get it.

I am so frustrated that people don’t seem to see the importance in taking care of each other, that in doing so we would lift the whole country up and build a solid foundation that will support us all and build a more prosperous country in the future.  I am tired of politics on both sides getting in the way of working together to find solutions to our growing problems.  It is time for them all to get their heads out of their asses and get to work.

Alright, enough ranting for one day.  I received the following email this morning and thought I would share.  Feel free to pass it on.

Top 5 Problems with the Tax Deal

Everyone knows that the “deal” that President Obama agreed to with Republicans will extend George W. Bush’s reckless millionaire tax bailout–but what a lot of folks don’t realize is that there are lots of other terrible parts of it, too.

Unemployed Americans desperately need their benefits extended to get by in this economy—so Republicans held them hostage to force through a slew of horrible economic policies in this deal.

Problem #1: The deal is a stealth attack on Social Security.

The deal will lower the payroll tax—the tax that funds the Social Security trust. This is a trap for Democrats. Republicans have been coming after Social Security for years and this cut is the biggest threat to the vital program in decades. It will cut one-third of Social Security’s funding this year alone and when we need to restore the payroll tax back to its current level, Republicans will cry “tax increases” and could gut it permanently. 1

Problem #2: For nearly one in three workers, it’s a tax increase.

Nearly 50 million working Americans—including all workers making less than $20,000 per year—and millions of federal, state, and municipal workers will see their taxes go up because of the deal.2

Problem #3: The deal has not one but TWO millionaire bailouts.

In addition to extending all the Bush income tax breaks for the top 2%, the deal will slash the estate tax. If Congress did nothing, next year the estate tax would be 55% and apply to everyone inheriting $1 million or more. But the deal reduces it to 35% and only people who inherit more than $5 million will have to pay. This second bailout will give a gigantic tax giveaway to a few thousand of the richest families in the country and add hundreds of billions to the national debt.3

Problem #4: Unemployment help is insufficient and inadequate.

While the deal extends unemployment benefits for another 13 months for people currently receiving it, millions of unemployed workers who’ve struggled the most and been out of work more than 99 weeks—since the giant Wall Street banks wrecked the economy—will get no help at all under the deal.4 It’s a gamble that there will be jobs in the next 13 months when the insurance runs out, but the tax cuts will go well beyond that. Better to just pass a stand-alone unemployment extension to help all struggling Americans.

Problem #5: Tax giveaways to the rich are a terrible way to create jobs.

Tax breaks for the rich are the least efficient way to create jobs and help the economy grow. In fact the nonpartisan Congressional Budget Office says extending all tax cuts would lower unemployment only 0.1% to 0.3% over the next year5 and that the cost of the tax deal would be $900 billion over the next five years.6

Sources:

1.”Tax Cut Deal A Hidden Threat To Social Security” The Huffington Post, December 8, 2010
http://www.huffingtonpost.com/2010/12/08/tax-cut-deal-a-hidden-thr_n_793983.html

2. “Obama-Republican Deal Could Mean Tax Hike For One In Three Workers” The Huffington Post, December 10, 2010
http://www.huffingtonpost.com/2010/12/10/obamarepublican-deal-coul_n_795187.html

3. “Estate tax deal: worst part of a bad tax compromise” The Christian Science Monitor, December 7, 2010
http://www.csmonitor.com/Business/Tax-VOX/2010/1207/Estate-tax-deal-worst-part-of-a-bad-tax-compromise

4. “Unemployment benefits: Extension won’t help ’99ers'” The Christian Science Monitor, December 7, 2010
http://www.csmonitor.com/Business/Latest-News-Wires/2010/1207/Unemployment-benefits-Extension-won-t-help-99ers

5. “The Deal” Paul Krugman, The New York Times, December 7, 2010
http://krugman.blogs.nytimes.com/2010/12/07/the-deal/

6. “CBO score shows tax plan ups deficit $900 billion in 5 years” CNN.com, December 10, 2010
http://articles.cnn.com/2010-12-10/politics/tax.plan_1_tax-cuts-tax-plan-bush-era-tax?_s=PM:POLITICS