Taxes and Regulations: “You Lie!”

What’s that hackneyed, old line that Boehner, McConnell and Cantor trot out at every press conference? Something about job-killing taxes and regulations. That’s their entire economic package, their ‘jobs’ plan for America: lower taxes on the rich, the so-called job creators, and eliminate the job-killing regulation which stifle business. Simple plan; simplistic, too.  But false, as usual.

To prove that it is a load of bull, I could merely point out that taxes [Bush tax cuts] have been some of the lowest ever for the past 11 years- lower than during the boom years under Clinton.  Where are the jobs that the job-creators created? The GOP spin is easy and has been effective in snookering The People into believing the simplistic crap.  Americans always like to keep things simple.

Yet, don’t take my word for it. There were 2 pieces of information in today’s news that were quite revealing, one regarding taxes, the other regulations. In his channeling TR speech yesterday in Kansas, President Obama cited this fact:

“A quarter of all millionaires now pay lower tax rates than millions of middle-class households. Some billionaires have a tax rate as low as 1%,”

No doubt, when the reactionary right-wing bloggers heard that, they raced to their keyboards to accuse him of lying. Yet, it’s true.  CNN reported today on CNN Money the story of that fact in an article titled, Billionaires with 1% tax rates. They wrote:

Last year, 4,000 households with incomes over a million dollars owed no federal income tax whatsoever, according to Tax Policy Center estimates.

What’s more, of the top 400 federal tax returns with the highest adjusted gross incomes in 2008, 30 had an effective tax rate of less than 10%, noted Mark Luscombe, the principal federal tax analyst at CCH.

Here’s the clincher, the fact that Boehner, McConnell and Cantor slither past:

A big reason is that a large percentage of wealthy Americans’ income comes from investments, which are often taxed at lower rates than ordinary wages and salaries. What’s more, some perfectly legal tax code provisions allow taxpayers to reduce their investment tax bills even further.

What’s that? A large percentage of wealthy Americans’ income comes from investments,

Investments? Oh, so they are not  job-creators? They aren’t business owners, shop keepers, factory owners? They live high on the hog from their investment portfolio. At a low tax rate.  Repeat, at a low tax rate.

Imagine that.

What about ‘those job-killing regulations’ that the GOP leaders grip about. Would Bloomberg Businessweek be an acceptable source for this story? This story: Obama Is Watering Down Regulations More Than Bush, Study Shows.

The White House Office of Information and Regulatory Affairs changed 76 percent of agency rules submitted for review under Obama, compared with 64 percent under his Republican predecessor, according to the study from the Center for Progressive Reform. Obama also has ignored requirements that he disclose documents exchanged between OIRA and federal agencies, the report said.

Here’s another interesting fact that Bloomberg wrote:

The regulatory affairs office’s 1,080 meetings over the past decade have been heavily dominated by business interests, according to the study. Industry representatives made up 65 percent of meeting participants, compared with 12 percent representing public interest groups.

So there you have it. The next time you hear one of the GOP leaders bark the taxes and regulations canard, yell out, “You lie!” just like SC Rep. Joe Wilson.

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9 thoughts on “Taxes and Regulations: “You Lie!”

  1. Couldn’t one argue, that if we were able to drill for oil here, the U.S. would have no need for OPEC?

    1. We actually don’t need OPEC with all of the oil in Canada, Mexico and the new oil sands in the Dakotas. However, somehow, the government/business connection cannot seem to cut its ties to the ruthless monarchs in the Middle East. What’s that connection??

  2. The old GOP scam about taxes and regulations is starting to fall on deaf ears, and the millions of demonstrators on the streets all across the country are ample proof of that. The lying Republicans will be in for a rude awakening next election, because we will OCCUPY THE VOTING BOOTH and throw their sorry asses out for good! They have scammed the country for the benefit of the 1% only for far too long, and we will now make them pay!

    1. Right, Jack, but the education of the masses has taken a painfully long time. Not only painful, but destructive- it has nearly destroyed the middle class here in the U.S. during which time they were either unaware or mindfully negligent of the GOP scheme operating all around them.

      1. But, M_R, stop the spinning please. It was Dems and Reps that have
        down sized the middleclass and have made it more difficult for the lower
        classes to rise up to the middleclass. I can’t find any objective historian,
        political scientist, or economist who offers any scenario that differs. This
        has been a consistent thread since some say 1973 and others move it up to 1979. As a historian i just break it down and say since the 1970s to the
        present. Moreover, M_R, i have listed source after source for these
        events. Finally, M_R, if I am presenting a “sacred line of bull” on here, please site chapter and verse, and, if you can prove otherwise, I am able
        to admit it and retract it.

  3. Hello All,
    If we just look at the last decade it can be well noted that tax cuts have done nothing to improve the economy, stimulated small businesses nor created jobs. If anything it has had the opposite effect.

    When the W. Bush tax cuts were implemented the unemployment rate was 4.2% but by end of December 2008, the unemployment was 7.2. The population of U.S. citizens below the poverty level went from 4.0% and went as high as 10.2% if you count in those who just gave up of looking for employment during his administration. A total of 6.2% compared to 5.8% in 2008 to 9.6% in 2010 giving a total of 3.8% for those years. This shows that there were more jobs lost during the W. Bush years than in President Obama’s.

    Under “Removing Restrictive Regulations” legislation was also passed that subsidized the multi-billion dollars annual profit pharmaceutical corporations, and prohibited the Federal government from negotiating discounts with drug companies.

    Based once again “Removing Restrictive Regulations” by June 2010, the U.S. Energy Information Administration said $557 billion was spent to subsidize fossil fuels globally in 2008, compared to $43 billion in support of renewable energy. We are talking about subsidizing the multi-billion annual profits of the Oil Industry, Coal Industry, and Gas Industry to the tune of $557 billion of tax payer’s dollars just in 2008. Oh Poor Under Privileged Fossil Fuel Industries!! By “Removing Restrictive Regulations” and the “Bush’s mandate of Non-Enforcement of Current Worker’s Rights OSHA Laws” of the Coal Industry; I give the example of Massey Energy. By not enforcing, more to the effect of just overlooking, Federal Mining Laws, and even falsifying records, Massey leaders mislead mine inspectors by keeping two books of records. One of which that contained accounts of safety violations that were never shown to the government.
    Meanwhile, Massey’s former top executive, Don Blankenship, is trying to get back into the coal mining business. Blankenship filed incorporation papers in Kentucky to start a new company, McCoy Coal Group Inc. The former Massey CEO left the company a year ago and was rewarded with $12 million in severance pay, a two-year consulting contract, and large pension and retirement packages. Mean while this policy of “Removing Restrictive Regulations” cost 29 men. Men who were Fathers, Brothers, Husbands, and Sons of West Virginia. Just like at the turn of the 19th Century, they were expendable assets in the mind of those who think this way of “Removing Restrictive Regulations.”

    Again we are “Removing Restrictive Regulations” by subsidizing the Tobacco Industries to the tune of $1,138,558,705 since 2000 during the Conservative Republican President, Senate and Congress until 2010. To put this in simpler terms, $1.1 Billion plus per year in government subsidizing. Before 2000 there was no subsidizing of the Tobacco Industry. Today the Tobacco Industry is recording annual profits of $500 Billion per year but is being subsided by our government since the G.W. Bush years to the $1.1 plus Billion dollars. Aww Poor Under Privileged Tobacco Industry needs our tax payer’s help!! The enormous health toll is the significant economic burden of tobacco use is more than $96 Billion per year in medical costs (Medicaid / Medicare) and when you add another $97 Billion per year from lost productivity; you have a total of $193 Billion Dollars cost to American Citizens…..and I reiterate, “Why are we subsidizing this industry with tax dollars to the tune of $1.1 Billion per year. This alone would provide medical coverage to every American Citizen. “It is not a problem of “Obama Care” but a problem of “Subsidizing Corporate Welfare” system because it is business friendly.

    So when you hear the “Republican Propaganda Blowhard Machine” say their platform is, “We need to keep the “W. Bush Tax Cuts” and “Remove Restrictive Regulations,”” these policies have done nothing but proven they are JOB KILLING POLICIES for over the last decade. If this is what they want to run on…..GREAT!!!!

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