President Obama sits down today at the White House with Republican lawmakers, who say Democrats can work with them by giving them everything they want. At the top of the GOP's list is busting the budget by extending all of the Bush tax cuts -- not just the ones for the middle class, which all parties agree on, but the ones for the richest Americans as well.
In an op-ed in the Washington Post this morning, incoming House Speaker John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell (R-Kentucky) say the $700 billion present to the wealthy is one of their party's "common-sense proposals" for growing the economy.
Oh, and by the way, Congress must act today in order to extend unemployment insurance for the millions of Americans out of work 27 weeks or longer. The GOP seems content to let those benefits expire, or to hold them hostage to tax cuts for the rich. As we saw on the show last night, unemployment benefits do more to grow the economy than lower taxes for top earners, because the unemployed spend the money they get right away. Reducing income taxes give you the least bang for the buck, the Congressional Budget Office reports in the chart above. The contrast is really quite clear.
After the jump, the widening gap between rich and poor in America.
[Full segment: GOP chooses wealthy over U.S. economy]
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Pointing out that the rich get richer doesn't seem to work. Rich people go "great!" and poor people go "@!$%# them", but can't get anything done.
Are Americans so simple-minded that they will continue to buy into the Republican's "trickle down" theory -- a theory that President Reagan's administration proved did not work? Are Americans so simple-minded that they will buy into the Republican's claim that "every single taxpayer will get hit with one of the largest tax hikes in American history"? Are Americans so simple-minded that they believe the Republican party of today cares about the interests of the middle-class and the poor, or even the nation as a whole? Rep. Boehner and Sen. Mitchell are correct on one thing -- "[t]ime is running out." And sadly, I think Americans today are that simple-minded, and that they will continue buying the Republican rhetoric without question. "We the people" have become like the abused party who keeps going back to a bad relationship -- the one we see on the news -- after time has truly run out.
Trickle down econ is about as effective as peeing upstream to water your garden!
The republican answer to unemployment was to get themselves elected so that they would all have jobs ..... thus, they do not see unemployment as a problem ....they are employed and their world, of course, revolves around them!
Hmm. My income is so low it's not even on the chart.
Lol. Mine too. Gotta laugh, or I'll cry.
I hope things get better for you both.... I will be in that boat VERY soon.
I love the chart. It says so much. Things aren't as bad in Canada. We actually have some regulation of our banks and we have universal medicare (poorly funded however). Unfortunately we also have a chamber of commerce and a federal government hell bent on privatizing stuff and getting rich from the sales. The old the corporations run everything problem.... coupled with no transparency.
Can someone provide the full reference for the CBO report from which the chart above was extracted? I'd like to read the full report; however, their website is not exactly user-friendly.
See if this might be the report you are looking for:
http://cbo.gov/ftpdocs/119xx/doc11972/11-19-CBO-Presentation-NTA.pdf
As someone on SS, I am really afraid of this batch of GOP/TP people. I will probably end up homeless if they don't increase the debt ceiling etc. And I couldn't afford a dollar less in my SS check at this point. I can't even afford the Medicare.
let's see, bill clinton froze federal wages after reagan and bush demoralized the federal work force dropping wages from a 10% deficit with the private sector to half of what the private sector gets for the same job. clinton even finds a loop hole and ignores a congressional vote to raise federal wages back up to par. then dubya sends the remaining competent government workers for early retirement and fills all regulatory agencies with unqualified cronies and executives of the industries they are supposed to be regulating. now obama with no seemingly advantage or cue, screws the federal worker again.
but let's give tax cuts to the top 2%. the only class of people not effected by the great repression during the bush regime.
republicans since reagan have dug a giant hole and put our government in it, democrats have stood by and watched. every now and then repubs will ask dems if they could throw some dirt on the dead corpse. and of course, bill clintion, barack obama and democrats seem to think the only thing to do is chip in.
the last 30 years of american government in a nut shell:
republicans blow up the deficit trying to wreck the government. america goes duh huh, that's not working well and put in a democrat. the republicans scream about the spending and democrats shrink the government. republicans get back in and blow up the deficit and americans go duh huh, that's not working, we need a change, and elect a democrat. republicans scream about the spending and the democrats shrinks the government...
I just wanted to point out the the California Unemployment Insurance system is based on the employers being taxed which is what then ends up being collected by the employees who are claiming benefits. It's a misconception that the money is paid by the working people over several year- it's employer contributions. I know this is true in California- the show should check facts to see if this is true across the board. I worry that Maddow may be erroneously saying that it's a general rule that employees are paying into UI.
I just read your CV and would suggest you have some sense , er , an expensive education anyway. So last night was incredulous ; the segment vis-a-vis what DC experts say would produce most results in unemployment rate.
Please link for me a new job in spending more on the unemployed ? Sure , they will spend it quickly ; correct there. Still looking for a new job here. Oh , but this hightened demand will expand the work force to keep up. Really ? Trillion and a half dollar deficit so far ...and what is the unemployment rate again...you said 9.6.
Ms. Maddow , I perceive you ,like our President , need to get out of town more. Small , privately owned , independent local businesses are the only source of new jobs. Accounting folks that advise me are estimating almost a 10% rise in my tax rate (not 10 % more taxes , 10 % more of my gross income paid in taxes !) this year if 2001 &2003 tax reductiions expire and the 4ish % Obamacare tax starts. Whoops , there goes any growth of employment here. Another year of trying to just keep all my people working. Phooey , I wish you people had a clue about meeting a payroll in these times.
Without the extention of U.I., you might need to lay off another employee at a time until your business goes under. That is where we are. People need money to spend. If your business is something outside of what is considered a necessity, then your customer base is having to cut some more. There is a relationship (I think) in your customer base and an economic further downturn, level or upturn. It seems with so many unemployed, no credit from banks, it's a wonder you are still in business at all.
The comparison is between tax cuts for the rich (taxable income over $250K) and extending unemployment insurance being economically beneficial NOT CREATING A JOB! Is there any value to people buying things, as opposed to not buying things? If people stop buying things, the unemployment number would go up, no?
Meeting payroll is what we are trying to support by extending unemployment, otherwise, I can see you letting people go and or losing your business.
While I support your desire to run a business and employ people, it's hard for me to feel bad for you if your taxable income is above $250K. What would you have to give up? If you are making such a profit, to me, it's not that sad for you.
My support for your business is advocating for more people to have money, so they can buy your stuff.
I can predict if our unemployment number goes up, the likelihood of crimes also goes up (possibly at your house?), then the police, court, prison costs also rise, costing taxpayers more.
It seems the "new job" thing is your claim, but that is the up side, in order to keep your business going is what we are talking about here.
How do we get demand up so we CAN grow?
My question to you is: If you keep your tax rates as is, are you going to grow your business and hire more employees, if people are not buying your product or service?
well said!
Would love it if you'd define what a "small" business is to you. The reason "small" businesses are the biggest grower of new jobs is because very small businesses are growing so fast. More and more people have to start a small business in this economic environment of shrinking jobs. Starting a business is also very financially advantegeous if you have the wherewithall.
Unfortunately, these very small businesses don't hire many people (other than family) because they can't afford it. Taxes are the last reason they can't afford it. In fact, they pay very little in taxes because they smartly don't show much of a profit. If a business does show a nice profit, then they don't shut their doors due to increased taxes. Just like how most people won't turn down a raise because their taxes will increase.
Knowing a lot of hard working people that have small businesses (and seeing the lavish liftestyles they live) makes me sick of hearing how put upon they are by the government. I believe they deserve what they earn, but I don't believe they have to demonize President Obama or the government in general.
The real issue with Obama is that he inherited the problems fomented by Bush, Clinton, Bush and Reagan governments. Bubble after bubble until we have arrived at the moment of truth. There are no more easy answers. But Repubs say they have the answer..more tax cuts for multi millionaires. REALLY?! Not.
How does helping the nation get Barack Obama out of office? The only stated goal of a party with a goal (that is, Republicans) is to unseat the President. The Democratic Party is divided, with some of its members more in sympathy with Republicans than their own party. The President is still committed to bipartisanship, which has already proven its futility.
Arguments of fact are not going to overcome the propaganda promulgated by the ultra-wealthy who have enormous funds (becoming even greater over time as their propaganda succeeds). Whenever someone like Rachel or Michael Moore score some points, the propaganda smear campaign cranks up and undercuts their work. We're in big trouble people.
Jim Bob,
I am not sure who is advising you, but the Tax cuts Obama is proposing gives EVERYONE a tax break, even the rich, up to $250K. The higher taxes kick in after that $250K. The fact is corporations have earned the highest income in history over the last quarter. These tax cuts for the rich have been in place for the last couple of years and still have not helped create jobs. The corporations seem hell bent on forcing the workers to do more work for the same money and not hiring more people. This keeps the money in the pockets of the CEO's. History shows us that the policies of the last 10 years have failed, why would we keep them the same? As for the unemployed, put 2 million people without any income and no jobs and watch what happens to the economy and your payroll. I am sure you sell a service or product, now you have 2 million less buyers. How will your company fair then? By not extending the unemployment benefits you create a chain reaction, less food is purchased, less basic necessities are purchased, forcing all of these companies to cut even more jobs. So now the unemployment rate just doubled, and the cycle starts again. When you give the rich the tax cuts are they going to buy more? No, they will continue the same, with no effect on the economy. When these people are making a million dollars do you think another $60K will really make a difference to them? Thats about what the tax cuts amount to. So they can buy a new car, big deal, doesn't help my economy any.
I’ve been unemployed since June 2009. This Friday December 4th my benefits expire. I apply to jobs every week (10 so far this week) and don’t get any replies other than the occasional rejection letter.
When somebody robs a Bank they get arrested and goes to jail. When somebody (like Wall Street) robs the American people they get a million dollar bonus and a Tax cut. What will happen to us when the Middle Class is complely gone?
Congress approved the construction of the Ford class aircraft carrier. We already have 11 carriers in service and don’t need 10 more. The Gerald R. Ford is already under construction, but we scrap the other nine and add that 80 billion dollars back to our budget. We might as well cut other ships in the pipeline too, we have plenty already and save even more.
Then we not only increase Income Tax to people making more than 250k, we add two more brackets at 1.5 million and 5 million. So Oprah and her pals pay a little more we know it won’t hurt them. That adds about 800 billion or more back to the budget.
Let’s not stop there. Let’s end both wars and pull out all our troops out of Iraq an Afghanistan and cut off funding building their infrastructure at the expense of ours. That should add at least 1 trillion back in. Oh and we don’t start any new wars with Iran or North Korea.
With a few more cuts and some careful spending we can dig ourselves out of the financial nightmare that the Republicans got us into. That’s how you make budget cuts. You don't hurt the working class by cutting Unemployment.
America is getting exactly what the people who voted want!! The Tea Party Republicans told America what it was going to do before the elections, and America spoke when they went to the polls.
Stupid is as stupid does!
Cully & Cathy - I agree with you both. I've been ranting on this for a long time.
War usually benefits only the wealthy to increase their wealth. And charity, they say, begins at home. So, let's do what's best for the good old USA for a change and for its middle and low income citizens.
I will never fully comprehend how middle America can vote for Republicans and their clearly nefarious agenda which benefits the rich and white folks only, and is so transparent and apparent.
If the corporations made record profits, as Rachel said last week, wouldn't you think that more jobs would be available. Most would think that, but when the govt. extends UI over and over again, there is no motivation for those to go and look for a job. So unemployment stays at 9.6% which makes the corporations nervous about hiring because they don't know where the economy is going. Cut the UI and force the people mooching to really try to find a job. Unemployment would go down and businesses would start hiring again. Oh, and Cully Waggoner, taxing Oprah would only make things worse. She would just stop donating as much to make up the difference. Her donations are much more efficiently spent than the GOVT.
http://charity.lovetoknow.com/Does_Oprah_Winfrey_Donate_to_Any_Charities
Mark, your rant completely flies in the face of hard, cold facts, not to mention basic economics. Have you ever been unemployed? Ever been unemployed in the steepest economic since the Great Depression? Obviously not, or you wouldn't be spouting such nonsense. No one is getting rich, or even comfortable on unemployment benefits. They can pay their rent, or mortgage, if they are lucky, get some food, pay their utilities, and maybe, if they are really, really lucky, even pay for some overpriced and underperforming health insurance. Corporations have made record profits, and they are doing nothing with that money except paying big bonuses to executives. Corporations aren't hiring, not because they aren't sure of where the economy is going, but because there is no demand for their products. That sort of thing will happen when 15 million are out of work, with many of their jobs shipped overseas. So your solution is to cut them off, and let them fight for jobs. Since there are 3 million jobs for 15 million people, what do you propose to tell the 12 million who would still be unemployed if those 3 million jobs were magically filled tomorrow? Maybe we should have death matches to fill open jobs, with the applicants fighting to the death in gladiatorial contests until one survivor is left standing? It could be a reality show on Fox, with Glenn Beck breathlessly spouting conspiracy theories while marvelling over the bloodshed the eliminates the lazy and waters the tree of capitalism.
Mark, your ignorance and callous disregard for facts and other people marks you as the true enemy of this country, the enemy that has caused so much damage to this nation and its citizens over the past 30 years.
Uffie, as usual you are right on the mark! Thanks!
Update. We have been extending UI benefits over and over and the unemployment % just went up again to 9.8%. Wow, what a stimulus those UI benefits are.
Eliminate it, and watch it go up a lot more. The CBO estimates that if the UI hadn't been extended in the recent deal, it would have cut up to 1% in economic growth. Translated for economic dolts, that means about a million more jobs lost according to their projections. Maybe your job, assuming you even have one now.
Oh ya, I forgot, the CBO is always 100% correct. Stupid me. If I lost my job I could then sit on the couch all day collecting a check. Sounds good to me. I need to find a way to get laid off.
If you want to lose your job, why wait to get laid off? You are free to quit any time you like. It's obvious your boss doesn't keep you around for your logic skills.
Because if I quit I don't get unemployment.
After seeing your winning personality here, I don't think it would be that difficult for you to do something that would get you fired. Just opening your mouth should do the trick, sport.
Enjoying the replys . So , let me see if I can understand. If we give away enough and take more from the "wealthy" ; all is better, that right ? Then it is absolutely a done deal , we can spend ourselves into prosperity . Way cool.
Would be remiss if I did not point out that around 2004 to 2005 ,I forget which year; Fed. govt had largest revenue EVER !Course , spent it all and more. Point is , there is a quantifiable place where lowering taxes exponientionly raises receits.
Un check, oops.
Look, we are forgetting something, the supply AND DEMAND makes economy work. If you want to lay off more workers, do not extend unemployment. If you are twisted up over paying the unemployment (you just pay the employee LESS to pay the U.I.).
The wealthy deserve that cut WHY? How much money do those wealthy NEED?
Oprah is going to donate whether her tax goes up or not. She has a heart. There are wealthy people signed on to paying more in taxes.
http://www.philly.com/inquirer/columnists/joseph-distefano/20101128_PhillyDeals__High-income_earners__Let_our_tax_cut_end.html
You are not going to win any converts by complaining about getting to keep your cuts when you groan about deficit and having to pay a bit more taxes when the economy is tanking. Are we rooting for failure here?
If you don't mind, what kind of business are you running? I am not rooting for your failure, but what I do NOT understand is this entitlement for tax evasion and let the little guy flounder.
You didn't answer my question and you need to get some facts into the post like in 2004 Fed. Gov't had the most revenue ever.
My question to you is: If you keep your tax rates as is, are you going to grow your business and hire more employees, if people are not buying your product or service?
He probably won't, maybe they should cut taxes and people would be willing to spend more. I just don't think people are going to spend like they used to. We are going to be more cautious from here on I believe.
And the wealthy are entitled to keep their money. They have a job that pays a high salary, good for them. That job was up for grabs for anyone. They already pay more taxes than anyone else. When is enough enough. Why take the incentive out of hard work.
Seeing as the top 1%have as much wealth as the bottom 95%, I'd say that the rich are the only ones who can afford to pay taxes in the first place. If we're being fair, it would seem that that top 1% should pay as much in taxes as the bottom 95% then.
For those who dig into the unemployment statistics there is an interesting phenomenon called my benies are running out so I did find a job just not the one I wanted. We're talking behavioral economics not the "masked" rational charts and graphs. Check it out at MIT.
I don't want to wish ill to anyone, especially around the holidays, but like Scrooge, you need some "enlightenment" to show you just how very wrong you are. Instead of a visit from three Christmas ghosts, perhaps you need to get a visit from a boss who lays you off so you can see how very ignorant you are about the reality of unemployment and the job market of the Great Recession.
You need to post the third graph from last night's show, the one showing how the rich got much richer right (a huge spike) around the time Reagan took over, and that line hasn't stopped going up since then.
B/T/W . As an independent business owner and newly defined as wealthy ; my little company's unemployment insurance payment to the state has gone up 360 % ! I only wish some of these bleeding hearts maybe would say thanks for the sacrifice being made by the employed. And our experience is as good as it can be ; never ever laid anyone off in our nearly 100 year history.
Sadly we have all been so class defined now that the pols call us 'middle class ' or 'wealthy' ;creating class envy . Why , pray tell , can't they lead us all ? The honest reality is this country is running out of rich people. They carry disprportionate tax burden.
Too bad your assertion that the rich carry a disproportionate part of the tax burden flies in the face of actual facts. Since Reagan, the rich have seen their tax rates cut in half, and many of them pay no taxes at all because of tax shelters and loopholes. Corporations have similarly benefitted, and 25% of them paid no taxes at all last year. So, who is left to pay the taxes? That would be the middle class, or at least what's left of us. Fortunately, we too will soon be eliminated, as repubs want to eliminate corporate taxes, and of course the rich still need their tax breaks, so who will pick up the slack? The middle class, until we are gone. Let's see how your business fares now that 2 million people are losing their unemployment this month. The CBO estimates that will cost the economy between 0.5a nd 1% in growth, and will lead to another million people losing their jobs. Thank god those economic geniuses in the repub party are working to fix our economy. If they work any harder, all of us will be out of work, and your business can go down the toilet with the rest of us.
class envy, schmass envy... you are not answering anyone's questions, so it sounds to me like you are just entertaining yourself here with your statements.
Not listening or looking at anything except your OWN SELF.
I am not envious of you... my whole basis for everything is the promotion of more level field with balance. I am not proud that we have a bunch of selfish people that believe it is weak to care about other people or see that there are 2 sides to the economic coin.
Why is is so great to have more hungry homeless people while millionaires complain about not keeping as much of their wealth?
Yes, it's best if we can have more people working, paying into the economic machine, but the idea that it is a one way street and the laborers are not part of it, that it just trickles down from the top is just wrong.
Apparently the Republican folks are not seeing that if people have no money, they will not buy anything. Apparently Republicans do not see that Bush took the surplus to massive deficit. There is no REAL concern about deficit, that is b.s., TOTAL b.s., just part of the schtick.
I really hope that we can start some new green manufacturing HERE, so people can get to work, but the top of the pyramid is withholding loans, trying to press down harder on people to get their minions elected for their own selfish needs.
Well, no unemployment extension, prepare for the rising crime rates, empty ouse, declining neighborhoods, theft, murders and suicides.
http://www.midlandsconnect.com/news/story.aspx?id=509501
http://www.allheadlinenews.com/articles/7013860790
It's nice to know there is another thinking person in AZ. Thanks for your comment.
Jim Bob is right on. Also if the government would get rid of all the red tape choking business, companies would be willing to open a business and or stop sending jobs overseas.