White House Rips Republicans As Obama Vows Veto of $3 Million Tax Cut For Millionaires

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In a strongly worded veto threat, the White House shredded Republicans for a bill that would give millionaires and billionaires a tax cut that averages $3 million each.

The White House issued a stern veto threat of the latest Republican attempt to repeal the Estate Tax:

The Administration strongly opposes H.R. 1105, which would add hundreds of billions of dollars to the deficit to provide large tax cuts exclusively to the very wealthiest Americans.

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Repealing the estate tax exclusively benefits just the wealthiest one or two estates out of every thousand—which would receive a tax cut averaging more than $3 million each—because current law already exempts more than $5 million of wealth for individuals and more than $10 million of wealth for couples from the tax. Given these large exemptions, well over 99 percent of Americans, including virtually all small businesses and family farms, do not pay any estate tax. H.R. 1105 would also shift a greater share of the tax burden onto working Americans at a time when the top one percent already holds more than 40 percent of the Nation’s wealth and wealth disparities have risen to levels not seen since the 1930s.

H.R. 1105 is fiscally irresponsible and, if enacted, would add $269 billion to the deficit over ten years, according to the Joint Committee on Taxation. The bill would worsen the Nation’s long-term fiscal challenges, jeopardizing programs and investments important to the middle class and national security. In addition, H.R. 1105, which was reported by the House Ways and Means Committee on March 25, is inconsistent with the budget resolution passed by the House of Representatives that same day, which depends on current law estate tax revenues to meet its purported fiscal goals.

H.R. 1105 is even more extreme than the temporary estate tax repeal enacted in 2001. That legislation provided for a “carryover basis” regime to prevent large amounts of accumulated wealth from escaping both income and estate tax. H.R. 1105 contains no such provision. Instead, it leaves in place the largest capital gains loophole in the tax code by retaining “stepped-up basis” rules that exempt capital gains on assets held until death from income taxes. The wealthiest Americans can often afford to hold onto assets until death, which lets them use the stepped-up basis loophole to avoid ever having to pay income tax on capital gains. By retaining stepped-up basis even after repealing the estate tax, enactment of H.R. 1105 would not only add hundreds of billions of dollars to the deficit to provide huge tax cuts to the most fortunate, it would endorse the principle that the wealthiest Americans should not have to pay tax on certain forms of income at all. By contrast, the President’s Budget would repeal the stepped-up basis loophole.

The Administration has consistently supported tax relief for middle-class and working families. The President’s FY 2016 Budget proposes tax credits that allow paychecks to go further in covering the cost of child care, college, and a secure retirement, and would create and expand tax credits that support and reward work. In addition, it would invest in accelerating and sharing economic growth through education, research, infrastructure, and help for working families. The President’s proposals are fully paid for, primarily by closing tax loopholes for the highest-income Americans. The Administration wants to work with the Congress on fiscally responsible tax relief for middle-class and working Americans. However, H.R. 1105 represents the wrong approach to the Nation’s fiscal and economic challenges. If the President were presented with H.R. 1105, his senior advisors would recommend that he veto the bill.

The latest gift for millionaires and billionaires is a classic example of what Republicans mean fiscal responsibility. Boehner and McConnell see nothing wrong with adding $269 billion to the deficit as long as the money is going to the people who need it the least. All of the Republican budgets cut taxes for millionaires and billionaires while raising taxes on the poor and middle class because that is how the Republican economic ideology operates.

The GOP continues to be guided by fantasies like “job creators,” and the myths that tax cuts for the wealthy create jobs and trickle-down economics works. If it weren’t for President Obama, some or all of these horrible policies would be the law of the land.

As the media looks towards 2016, President Obama continues to fight for the middle-class and serve as the last line of defense against Republican economic failure.

29 Replies to “White House Rips Republicans As Obama Vows Veto of $3 Million Tax Cut For Millionaires”

  1. Here’s an idea. Why doesn’t Congress do some big breaks and tax cuts for those us that make under $100,000.00 a year. Now that would be a nice change.

  2. its time to let the millionaires and billionaires worry about themselves for a while. it is time to focus on the middle and working class and the poor for change. time for some trickle up economics. the wealthy will never be satisfied. their greed is pure evil. we have a chance in November 2016 fix a lot of wrongs.

  3. The voters don’t pay attention to what their representatives are trying to feed them, or are just plain stupid. Last year McConnell ran adds about doing away with the (Death Tax) inheritance tax. Some guy on a tractor, talking about leaving his farm to his family. What most didn’t realize was, the average Kentucky farm didn’t qualify. Maybe a thoroughbred stud farm would, but not your everyday, run of the mill farm.

  4. When you talk to a dog the dog tilts his head in bewilderment at you. The GOP must be acting this way when they hear opposition for their of blatantly unfair, one-sided tax cuts for the wealthy (no disrespect for dogs intended).

    What happened to all the crying & wailing about increasing the deficit & how is this tax cut for millionaires going to be paid for?

  5. OH<you know the thugs just find it the best of the best, to give Billionaires(think 70+ billion each) a 3 million tax break each. The poor billionaires can't afford to pay taxes. Only the working stiff gets that pleasure.
    According to rethugs, that is how the world is supposed to work.

  6. Allowing the evil GOP to do things like this is our own fault. The GOP groupies who vote to keep putting them back in office hate the President so much that they are willing to bite their nose off to spite their face. However the Dems thinks it’s a chore to get off their conveniences and get out and vote. Make 2016 elections, the time to do away with evil.

  7. “evil GOP”…get a grip. No party cares. It is all about power. The democrats do “evil” through the government. The GOP through capitalism. Choose your poison and pick whatever gives you the most personal freedom.

  8. What do you mean by evil–social security, environmental, Wall Street regulation and civil rights laws? These are for YOUR benefit, Al.

  9. The GOP isn’t guided by any fantasies of job creation & trickle down. That’s all talk to cover for the fact that they know exactly what they are doing.

  10. Here’s an idea, why don’t we stop complaining about this on the internet and get enough sane people out to the polls to vote these idiots out of office!!

  11. I have to admit that this one would help me and my children.
    Well, it does not necessarily hurt me, I don’t need the extra money.
    It means I would pass on more money to my children but it is not more tax, it would be less tax.
    I worked my life to build my fathers estate.
    We paid 30%+ taxes on it when we earned it just like everybody else.
    Then a 40% inheritance tax.
    The poor are screaming for a bigger inheritance tax.
    (they would feel different if it were them.)
    And the rich want to lower the tax.
    I suspect it will be a push and stay the same.
    I’m ok with that.
    If the poor want more taxes they can go after the off-shores and active corporate loopholes.
    Attacking families won’t fly on either side.
    The republicans making an issue out of this will backfire. (like all the backfires the republicans have done)
    I just wonder how bad.
    Republicans just can’t leave well enough alone.

  12. Who among us would like to see taxes on the job creators and filthy rich returned to pre Reagan
    levels? Back then govt. spending didn’t deplete it’s
    resourses.

  13. “Among the few estates nationwide that owed any estate tax in 2013, the effective tax rate — that is, the share of the estate’s value paid in taxes — was 16.6 percent, on average, according to the Urban-Brookings Tax Policy Center (TPC).[5] That is far below the top statutory rate of 40 percent. (See Figure 2.) Claims by repeal proponents that the estate tax consumes nearly half of an estate’s value are therefore false.”

    http://www.cbpp.org/cms/?fa=view&id=2655

  14. We are Laddie, we are! No more sitting around hoping that they go out and vote, we are going to call them out, drive them to the polling stations and wait for them to vote. Yes Laddie, this time be different ;-)

  15. Are you serious? To the contrary, the Republicans want to eliminate your home mortgage interest deduction. In other words, they want to RAISE your taxes.

  16. The Repuke scum are just doing what their owners TELL them to. They don’t give two squats about We the People because we don’t have the money to buy them off like the Kochroaches and their ilk.

  17. The thing is this isn’t for millionaires and billionaires, it’s for those who have an estate worth over $5 million when they die. There are not that many that I know of (most are under that so they never get hit). The wealth lobbiests for the few that do are the ones who are pushing this bill.

  18. Restore the FULL FEDERAL ESTATE TAX to where it was in 2000 before the idiot boy emperor dubya destroyed it. The Federal Estate Tax is the cornerstone of tax fairness in the USA, and the ONLY TAX ON PURE WEALTH in the entire US tax code.

  19. REPEAL YOUR HEALTHCARE,,,,CUT your social security,,CUT your medicare,,,CUT your food stamps,,CUT your unemployment INSURANCE,,CUT you EARNED income credit from your taxes CUT veterans benifitts SELL OUR PARKS AND TAX BREAKS FOR MILLIONARES,,,,,,,,,who didnt even ask for them
    everyone say HELLO,to our NEW REPUBLICAN CONGRESS we have just elected for ourselves
    VOTE THESE IDIOTS OUT OF OFFICE,,,you cant wish them out,,,any one who is reading this and did not vote,,,YOU ARE PART OF THE PROBLEM not just them

  20. If the American middle and lower classes don’t see significant changes in taxation policies and corporate influence in our politicians, then these riots will become much more common and dwarf anything seen before. It will be not only black, but white, red, yellow and all other races of people who make up our middle and lower classes, that will riot and demand to be heard! These corrupt policies, that attack the middle and lower classes, has to change! Corporations are sending jobs to other countries and profiting only the 1% of us. Hell, we can’t even call them “us” because they don’t even want to be near us. They are the upper crust and look down on us. WAKE UP MIDDLE CLASS!

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