Tuesday, October 23, 2007

The Republicans screw the middle class (again)

Republicans are holding Alternative Minimum Tax ("AMT") relief hostage to making Bush's tax cuts for the very, very wealthy permanent. Bush's tax cuts benefited the top 5% of American earners, while the AMT reform--which the Republicans have already agreed is a real problem that needs to be fixed--benefits middle class Americans. But the Republican won't help the middle class until the hyper-wealthy are taken care of first.
Senate Republicans are demanding the extension of President Bush’s signature tax cuts before they cooperate on hemming in another tax that they contend affects mostly “blue state” voters living along the coasts.

At issue is the Alternative Minimum Tax (AMT), which will hit an additional 20 million taxpayers next April unless Congress takes action. The problem for Democrats is that they will need Republican support to shield people from the tax, and Republicans are signaling they will have to pay a price.[1]
The Republican obstructionism is at work again.
But the strategy is risky because Congress must act quickly if it wants to shield people from the creeping tax and also avoid mass delays of taxpayer refunds by the IRS. By demanding extensions of controversial tax cuts, the Republicans could be blamed for standing in the way of tax relief.

Democrats jumped on this point on Tuesday. "If the Republicans want to hold up tax relief for 19 million Americans in order to help people who don’t need the relief, that’s their choice," Jim Manley, a spokesman for Senate Majority Leader Harry Reid (D-Nev.) told The Hill.
At the rate they are going, Grover Norquist is going to start voting Democratic. Imagine refusing to cut a tax that everyone acknowledges to be abusive! I think Republicans badly mistake the sentiments of their own anti-tax wing if they think this will win them votes in red states.

Read the complete story, "Senate GOP puts price on a blue-state tax cut," at The Hill.


Info_Tech_Guy said...

Thank you for addressing this issue. I've noted how Republicans (and DINOs) attempt to claim their tax policies/legislation benefit the middle class. However, this is clearly a ruse designed to blind middle class tax payers to the incredible favors showered on the rich... Middle class tax payers have a few tax deductions thrown their way while the rich save boatloads of dough... Eventually, the higher costs of a society ordered for the convenience of the rich eat away any "savings" bestowed on the middle classes.

The Richmond Democrat said...

Thanks Infor Tech Guy. Great to hear from you as always.