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Republicans Melt Down and Slip into Total Denial on Taxing the Rich
By: RmuseNov. 13th, 2012more from Rmuse
Human perception is based on identifying, organizing, and interpreting information accurately, and only delusional people with strongly held convictions hold beliefs in spite of superior evidence to the contrary. On a basic level, anyone asserting that a statement or allegation is not true despite overwhelming evidence to the contrary suffers from the defense mechanism known as denial because the truth is too uncomfortable to accept. There are different types of denial, and after President Obama won re-election last week, Republicans expressed minimization and simple denial to assuage the damage to their long-held certainty that Americans believe cutting taxes for the wealthy will reduce the deficit, create jobs, and enrich the poor and middle class.
Republicans and their surrogates suffer from minimization denial because although they admit the President won a decisive victory against Willard Romney, they deny the people were serious that the notion of cutting taxes for the wealthy was a horrible idea that put the economy at great risk and would increase the deficit by reducing revenues. President Obama certainly got the people’s message and went on the offensive promising to veto any deal extending Bush-era tax cuts for the wealthy while at the same time telling Republicans to keep reduced rates for 98% of Americans and 97% of small businesses. Still, Republicans doubled-down on their trickle down tax scam by stating in no uncertain terms that they would not, under any condition, raise taxes on the rich to Clinton-era rates and, in fact, will reduce them further to reward their wealthy donors.
The problem with denial is it leads to inane reflexive statements and actions that paint deniers into a corner without a means of escape and usually results in disastrous results. Within a week of the election, Republicans put themselves into a corner and appear content to let the economy and the people suffer because they cannot accept that the people support raising taxes on the wealthy. Republican leaders deluded themselves all week that voters re-elected President Obama so he would put Willard Romney’s tax plan into effect and none were as adamant as Grover Norquist.
Norquist claimed the President won re-election because he convinced voters Willard Romney was a “poopy head” and although Romney fits that description, it belies why the President won the election. Norquist said, “But he didn’t make the case that we should have higher taxes, he sounded like the opposite.” Norquist suffers from simple denial because the President said very clearly throughout the debate that wealthy Americans earning more than $250,000 should pay more in taxes, and exit polls showed broad support for raising taxes on the wealthiest 2% of Americans. In fact, for the past three-and-a-half years the President advocated raising taxes on the rich and the public has consistently supported the idea that was reflected in the election results. However, Norquist is not an elected official and has no voice or vote in raising taxes but Republican leaders in the House and Senate do and they share his delusion.
Senate Minority Leader Mitch McConnell suffered two crushing defeats in the election in not preventing President Obama from earning a second term and not taking control of the Senate, so perhaps his contention that Republicans will not agree to raise taxes on the rich is based in utter disappointment. Three days after the election McConnell said, “I wasn’t sent to Washington to raise anybody’s taxes and this election doesn’t change my principles.” McConnell promised he was unwilling to raise taxes at all to avoid the so-called fiscal cliff and promised that if people think Tuesday’s results mean Republicans in Washington are going to “roll over and agree to demands that we hike tax rates before the end of the year. I’m here to tell them there is no truth to that notion whatsoever.” McConnell’s attitude mirrors Republican intransigence that pushed Congress to agree to the fiscal cliff in the first place, and coupled with his promise to use hostage taking as a bargaining tool all but guarantees another economic crisis to protect the wealthiest 2% of income earners.
Speaker of the House John Boehner expressed a willingness to work with the President right after the election, but he quickly attached qualifiers that portend another standoff to avoid following the will of the people. Boehner said, “The Republican majority in the House stands ready to work with you to do what’s best for our country; that is the will of the people and we answer to them.” However, Boehner continued that following the people’s will on raising the wealthy’s taxes was not an option Republicans were willing to concede. Boehner parroted Willard Romney’s campaign promises and asked the question, “Does the increased revenue come from government taking a larger share of what the American people earn through higher tax rates? Or does it come as the byproduct of a growing economy, energized by a simpler, cleaner, fairer tax code, with fewer loopholes, and lower rates for all?” Boehner also cited a flawed study where he drew a line on taxes identical to Republicans’ failed presidential candidate Willard Romney that claimed tax increases on the rich will have an unbalanced effect on small businesses that has been broadly debunked; especially since only 3% of small businesses file as individuals and exceeds the $250,000 threshold. It is why President Obama claimed preserving Bush-era tax cuts for incomes under $250,000 will help 97% of small businesses.
President Obama wants to keep Bush-era rates for 98% of taxpayers, and since the Senate already passed a plan to extend middle-class tax cuts, House Republicans have a choice to either pass the Senate plan in the lame duck session or wait until the new year. The President does not have to bargain away anything to Republicans, and it is why he has threatened to veto any plan maintaining the wealthy’s rates. Republicans want rich people pay lower taxes, but since they already have substantial income below the top bracket, they will actually benefit massively from the middle-class cuts. The Republican’s master, Grover Norquist, made a philosophical determination that voting for middle class tax cuts without including the wealthy is a vote for higher taxes, but he also opined that President Obama campaigned on reducing taxes, so his ruling is out of the realm of reality.
Republicans cannot possibly be deluded to believe the people, or President Obama, will allow them to hold the economy hostage over raising taxes on the wealthy a measly 4%, but they have shown no willingness to compromise and work with the President. The impending fiscal cliff is the result of Republicans’ unwillingness to take a balanced approach to deficit reduction that led to America’s first credit downgrade in history. McConnell enjoyed holding the economy hostage last year and promised to do again after the election, and he is sending signals that he will fulfill his promise again, but the difference is President Obama is in a position to call Republicans’ bluff.
Republicans can publicly deny voters support raising taxes on the wealthy as much as they want, but they are only fooling themselves because President Obama got the voters message or he would not have promised to veto any extension of Bush tax cuts for the wealthy. The Republicans have been in denial since the President won the White House in 2008, but it is time for them to face the reality, no matter how uncomfortable, that the voters re-elected President Obama last week because he promised to raise taxes on the rich and like it or not, as John Boehner said, they are there “to do the will of the people.”
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clarence swinney
Nov. 13th, 2012 at 4:04 pm
Hipporats—Top 2%–eliminate tax cut is raising tax
Eliminate exemption to pay more tax is not a tax increase?????
The CBO recently gave the following taxation tutorial:”Under current law, the federal tax
system is progressive, meaning that average tax rates rise with income. In 2009,
households in the bottom one-fifth (quintile) of the income distribution—who had
an average before-tax income of $23,500, including transfer payments such as
Social Security benefits—paid a total of about 1 percent of their income in
federal taxes (counting individual income taxes, payroll taxes, corporate income
taxes, and excise taxes). Households in the middle quintile, with average
before-tax income of $64,300, paid 11 percent; and households in the highest
quintile, with average before-tax income of $223,500, paid 23 percent. Within
the top quintile, average tax rates were higher for higher-income groups:
For instance, households in the top 1 percent of the income distribution
had an average tax rate of about 29 percent.”
They also assessed the relative cost in jobs between essentially continuing the current tax provisions while indexing the AMT for inflation, and doing so but excluding the “wealthiest one percent”. The latter course entails a loss of 200,00 jobs compared to the former.
Now what do you not understand?
Nefer
Nov. 13th, 2012 at 4:22 pm
“Norquist is not an elected official and has no voice or vote in raising taxes but Republican leaders in the House and Senate do and they share his delusion.”
Yes, but those republican leaders, and the rank and file as well, have all sworn an oath to Grover Norquist that they revere above their oath of office, and thus they are required to support his delusion without question.
Beaglemom
Nov. 13th, 2012 at 4:27 pm
I agree with you completely. Grover Norquist is a nobody in the end. I’ve never understood how he could control the minds of so many GOP politicians with his seditionist rhetoric. Members of Congress take an oath to uphold the Constitution, not the ravings of Grover Norquist. If Grover Norquist or the Koch Brothers want to affect public policy, they should run for office and let the voters decide.
Maranon
Nov. 13th, 2012 at 4:31 pm
Maybe he is using the Russian mind control that the UN is using on the rest of us…ha ha
A Walkaway
Nov. 13th, 2012 at 7:39 pm
Where you’ll encounter that – and I’m serious – is in organizations connected with the “Good Christian” churches. Organizations like the ones supposedly helping rebellious teens.
Pretty effective too – either it destroys them or it makes them part of the problem.
Maranon
Nov. 13th, 2012 at 4:29 pm
In theory the top earners are to pay more, but in reality the top earners have lawyers and trusts and those lawyers know the loops and other ways to hide their wealth so it is not taxed.
WE have welfare for the rich and they know it, and feel entitled to it.
In privatization of everything, we are paying thru the nose for those services, and they are just “good business people”
The rest of us…not so much.
luciboo
Nov. 13th, 2012 at 4:45 pm
The GOP can pick Grover and the Koch boys or the people of this country.
If they don’ t put country first
I am pretty sure they will be updating resumes. People will not stand for it.
They have already sent that message.
Moongal6
Nov. 13th, 2012 at 4:50 pm
I believe the Republicans will rue the day they kept the Majority in the House.
The public at large FINALLY figured out just who or what the legislative logjam really is.
The majority of Americans who thought it was just one person obstructing everything, now KNOW is the Republican controlled House. At the end of the day, the proper entity will be blamed.
Thomas Bishop
Nov. 13th, 2012 at 4:59 pm
Preserving tax cuts for the wealthy would drive up the deficit without substantially improving the economy. But this debate isn’t just about budget arithmetic. It’s about morality, too.
According to Republican liturgy, allowing tax rates on upper incomes to rise would punish the rich for their success, taking away money that the rich have earned.
But this argument suffers from two key flaws.
One is that it fails to account for the power of luck. People who are successful have almost always benefited from some measure of good fortune. That fortune can take the form of obvious, material advantages–like access to advanced technology and good schools. Or it can take the form of more subtle, but still important, assets for moving forward in life–like good health or loving parents.
Yes, good work ethic will take you far. And I know many well-educated professionals are convinced that nobody works as hard as they do. But I’ve also worked with many people at the bottom of the income ladder – people who work just as hard, for far, far less reward.
Between 1980 and 2011, as income disparities widened, the richest 1 percent of Americans got more than 80-85% of the country’s income gains. Think about that for just one hot minute. Does anybody seriously believe that the other 99 percent didn’t deserve to take home a much larger share?
The other flaw in the conservative argument is that it fails to acknowledge the debt wealthy people owe to society. The proverbial self-made man is not exactly self-made. You didn’t build that by yourself. He (or she) is benefiting from the accomplishments of past generations, not to mention the support of public institutions and services like schools that foster innovation and lead to greater productivity.
All anybody is asking is that the rich pay more in taxes–in effect, that they reinvest in America by a little more than they do now.
RMuse
Nov. 13th, 2012 at 7:13 pm
Agree Thomas – What the GOP fails to acknowledge is all the toil and hard work University educated employees like school teachers put in and barely make middle class status and still pay a higher tax rate than say, Willard Romney. Or the police officer that risks his life everyday and pays a higher rate than John Boehner. Luck does play a significant role, and the wealthy generally “lucked out” by being born into their riches. Most of them don’t even pay the marginal rate and even if they did, they wouldn’t notice a 4% increase. In Europe we pay a very high tax rate and there is very little complaining because it is considered a privilege to support the government and programs helping the less-fortunate. Americans, as a rule, do as well.
clarence swinney
Nov. 13th, 2012 at 5:46 pm
WHO PAYS EXCISE TAXES?
Middle 20%=18%
Top 10%=21%
Top 5%=13%
Top 1%=5%
singhx
Nov. 13th, 2012 at 6:41 pm
When you have people who act out of bad habits, you find that they continually re-create the past. New behaviors and habit patters cannot emerge from THE OLD ONES…that’s a fact.
So, as long as this political tribe of mindless, uncaring cretin remain in power, stuck in their irrational belief system, their continuance of old pattern habits and cognitive distortion, change won’t happen. They will never, ever “get it”; stop banging your heads against the wall, because denial is just the tip of their iceberg!
Asking THEM to their change the way they think and behave is asking them to examine personal core beliefs (Grover Norquist has already “bought” their souls)–THEY would have to ask themselves why they don’t care about people, the environment, and yet, their core belief in hate, greed, ignorance gives them something to live for each day…nothing new can come from this bunch of old, crazy-making white men…you can stop banging your head now.
Brian W
Nov. 14th, 2012 at 11:28 am
None of us has all the answers because we don’t have the time to find out and or explore ALL THE TRUTHS involved with the issues.
People need to keep in mind how much good the “rich” people do in this country..How much they give back in ways you don’t necessarily see in the open. (philanthropy)
You start taking away a person’s reason for succeeding and they will stop trying to succeed.
Obama won both elections not because he promises to tax the rich more, but because the poor people are afraid of losing their entitlements and many are afraid of what changes might be made to social security.
As per usual, the Democrats have a way of injecting their wishes into a situation and making it look like truth..
Gary Reber
Nov. 14th, 2012 at 12:16 pm
In order to pay down the national debt and eliminate deficits we must create a growth economy whereby we finance economic growth simultaneously with creating new private, individual ownership of FUTURE income-producing productive capital assets.
We must shift subsidies to broadening private, individual ownership in companies developing new energy production solutions and infrastructure, and progressively tax “hoggist” incomes paid to CEOs and others who seek to own productive power that they cannot or won’t use for consumption. These super-rich Americans are beggaring their neighbor––the equivalency of mass murder––the impact of concentrated capital ownership.
In order to practically reduce the spending on the military-industrial complex derived from the economy prop-up from taxation and national debt, we need to shift focus to creating new productive capital wealth and expand the economy in the private sector to broaden private, individual ownership among ALL Americans.
The mission needs to be an Economic Marshall Plan with the objective of enabling ALL Americans to become financially independent through growing capital ownership dividends and jobs that pay decent wages and salaries. Presently, Americans are dependent on jobs as their ONLY source of income and jobs are constantly being destroyed or degraded as a result of global wage level competition and significantly tectonic shifts in the technologies of production.
SIGN the Petitions at signon.org/sign/reform-th... and at petitions.whitehouse.gov/...
Joshua Reidy
Nov. 14th, 2012 at 1:12 pm
While it is true that our tax model is in theory “progressive”, in reality it is very regressive once you get over 200k in earnings. That is due to “carried interest” and capital gains taxes that effectively lower the rate and as Gary Reber points out concentrates “productive capital” at the top.
clarence swinney
Nov. 15th, 2012 at 10:26 am
OBAMACARE GAINS
Kaiser Family Foundation poll finds just 33% support repealing the LAW.
It is law of the land. Changes will be made to improve but repeal=no Mitto.
For decades, polls showed, consistently, that 70% wanted
to stop rapid rise in health care costs.