Talking about taxes goes over like a lead zeppelin, but in today's short post I wanted to share my opinions on the proposed Obama Tax Plan. The plan would extend the current Bush Tax Cuts for the middle class but not the highest tax bracket (more than $250,000 a year). This probably will sound familiar because this was the same thing he proposed in 2010, a proposal that at the time and currently is supported by a majority of Americans.
Republicans, whose diet mainly consists of Grover Norquist's semen, understandably wanted the tax cuts extended to everyone. They stated the common mantra that raising the tax on the rich would discourage the job creators from actually creating jobs. Yes, I know the unemployment rate and median income barely changed even before the recession but shut your damn mouths tax cuts work folks!
President Obama faced his opposition and went "Okay, I'll extend your fiscally irresponsible tax cut for everyone. But I'm here to play hardball, I'm a tough cookie. So if you want me to extend your wasteful tax cut, you are going to have to give me a 2% reduction on the FICA employee tax."
The Republicans shockingly took this stern counter offer of an additional tax cut resulting in hundreds of billions of additional deficit being added to the Federal bottom line.
So here we are with the same dog and pony show and of course Republicans are bitching and moaning the same talking points even though these tax cuts really have done nothing to help our economy. As someone who works in tax research I have a bold series of predictions to make:
- Obama will extend all of the Bush Tax Cuts in "a stern compromise".
- The FICA Tax Holiday will not be extended.
- Republicans will attack Obama for allowing the FICA Tax Holiday to become expired even though it was the President's agenda in the first place.
- Standard and Poor will drop the US to a credit rating of "A" by 2020 because of our uncontrolled spending.
- Because of this, all social programs will be cut from the budget while defense will be raised via a projected cut. The deficit will be reduced by 5% and republicans will proclaim they are "Fiscal Hawks".
- Also, The Cubs still will have not won a World Series cause they suck.
I think at the voting booth this year I will elect to wipe my ass with my ballot.