Change: Tax Cuts For The Wealthy, Deploy More Troops

Liberals are having a tough time with Obama these days. Join the club. But reading this article on tax cuts for the wealthy coming right after Obama increasing troop levels in Afghanistan, one almost gets the impression President Bush is still in office. Change! Just be sure to check the expiration date.

Another item via the insightful CongressDaily. And no, I'm not getting a kick back on subscription fees. I wish I was. 

How much of this stuff are the liberals in Congress going to swallow before they start hating on Obama the same way they did on Bush? Report via CongressDaily. Tick, tick, tick.... Cue demonstrators. heh!

President Obama's Afghanistan troop surge decision caused considerable rancor among liberal House Democrats Tuesday at the same time they are being asked to vote this week on a measure cutting taxes for millionaires.

"It's a lot to swallow," said Rep. James McGovern, D-Mass., a progressive who opposes Obama's move to send 30,000 more troops to Afghanistan as well as the estate tax measure. "But I'm not disillusioned; I feel more committed and have more of a sense of purpose. We have to do a better job fighting back and making sure that our priorities indeed move forward."

The House bill would set the estate tax at 45 percent with an exemption for up to $3.5 million in inherited assets per individual, at a $234 billion cost. That figure would not require offsets under a deal House leaders struck with members of the Blue Dog Coalition, provided the Senate passes statutory pay/go language.

But that is an abstract concept to liberals weighing the cost of war and a tax cut for a small group of wealthy families. The House bill would head off the estate tax's scheduled 2011 increase to 55 percent, with the threshold lowered to $1 million. It would protect all but about 5,500 families, or the richest 0.2 percent from the tax, according to the Tax Policy Center.

That's not good enough for those who argue multimillionaires are still getting a free ride. "I feel that it's a contradiction to vote on a tax break for people worth $3.5 million and above while we're sending troops overseas without any idea how we're going to pay for it," said Rep. Raul Grijalva, D-Ariz., co-chairman of the Congressional Progressive Caucus.

Rules Chairwoman Louise Slaughter called the $234 billion cost a "pretty astonishing figure" and suggested some of those revenues should be set aside to help pay for the war. "The money is going to be needed here if indeed they get enough votes to pay for this adventure here in Afghanistan," Slaughter said.

One veteran lobbyist said Democrats could pay a political price by asking members to support sending more troops overseas while voting to cut taxes for the wealthy. "If the House Republicans had a vote like this the same week Bush announces a troop surge, Rahm Emanuel and the folks at the [Democratic Congressional Campaign Committee] would've been popping champagne," the lobbyist said. House aides noted there was concern about voting on the estate tax bill with no guarantee the Senate will be able to pass it.

Slaughter said they needed to act on an estate tax bill to prevent the rate from going to zero next year. But she said her preference would be to revert immediately to the 55 percent rate set for 2011. "The sense that we've gotten from it is we need to do it because it's going to expire, and we've got 30 days, but frankly, given my choice, I'd rather go up to 55 percent right now," she said.

Advocacy groups such as United for a Fair Economy have been plugging a higher estate tax rate and lower exemption as critical particularly given the state of the economy and need to create jobs. They support a bill from Rep. Jim McDermott, D-Wash., that would set the exemption at $2 million per spouse, adjusted for inflation, with a progressively rising estate tax rate based on the value of an estate. For estates worth up to $5 million, the tax would be 45 percent, rising to 50 percent for up to $10 million and 55 percent for those above $10 million. That would cost about $203 billion, according to the Joint Committee on Taxation.

In an alert to UFE members Tuesday, senior organizer for estate tax policy Lee Farris wrote the McDermott bill was the best policy "because our country needs funds for long-overdue investments in health care, education, clean energy, and other public services -- not more tax breaks for the heirs of the richest 1 percent."

Addressing the current law exemption of up to $7 million per couple, Farris wrote: "If a person won $7 million in the lottery and then complained that it wasn't enough, we'd call it ridiculous."

Some of the biggest advocates of making the 2009 estate tax permanent are Blue Dogs, a key voting bloc on nearly every controversial bill from war-funding to health care. Blue Dog Rep. Earl Pomeroy, D-N.D., is the lead sponsor, and he has a champion in House Majority Leader Hoyer. Hoyer said Tuesday the current situation makes it "impossible to plan within that context for any kind of rational estate planning for families and for small businesses."

One GOP aide snickered that House liberals have had the rug pulled out from under them numerous times, including on a smaller healthcare bill than they wanted -- and even that had to be paid-for, unlike the estate tax. "In many respects, they haven't had a major victory since the Johnson administration," the aide said. "It's been 40 years, and they want their piece of the pie."

McGovern said some policies were trending in the wrong direction, but there were positive signs as well. "There are some good things happening, too; we're moving forward on health care. I'm a liberal who doesn't like everything the administration is coming out with, but overall I think they're doing a good job," he said. "If we can get health care, I think that's a pretty big deal for progressives. One of the things the speaker has to do is keep this entire family happy. We all have different wants and different needs, and I get it. But I'm not complaining - yet."

Comments

[mojo]

See also:

Ghost in the Shell: The Solid State

[Elmo]

I haven't waded too deeply into Buraq the Magic Pony's floetry, of last night, yet. But what a joke. And all too predictable. A dedicated program, based on his past behavior/actions ... could have easily created this gobbledygook. In .003 seconds.

He cannot be trusted. At all. For anything. He is a foreign born traitor. Who needs be shown the door. Without haste. We spit on that sack of shite. Proudly.

[Alex]

"If a person won $7 million in the lottery and then complained that it wasn't enough, we'd call it ridiculous."

Presumably this gentleman will tell us when we've had enough. He and the rest of the them can go **** themselves. Our money doesn't come from them at their grace.

[Firehand]

This is a bunch of filthy thieves talking about armed robbery; just because someone dies they think they have some privilege to simply take more than half of the estate.

"Lottery" my ass, Farris is a dirtbag.

[syn]

Tax Hollywood 100% of everything they earn to pay for the war.

Hollywood should dearly pay for their anti-war agit-propaganda; 100% tax on everything they earn is a good start.

[mark l.]

I'm watching susan rice on shep smith...

this is one of life's biggest ironies-
she is advocating a surge, and defending the idea of fighting al-queda and the taliban while simultaneously acknowledging that there are few, if any, aq or taliban who haven't already moved to pakistan.

for a party that had vehemently argured agianst the surge, with apresident who also opposed the surge to now advocate a surge, along with the acceptance that the enemeies they are fighting aren't even there is just too good.

change?
please.

forget the "we are all socialists, now"-

"we are all neo-cons, now".
welcome to the club libs.

[david r]

I guess those idealistic young libs are sniffling now that they have learned what we have known all along: Obama is a cynical politician who will do anything to further his cause, including the abandonment of the ideals he ran on. I like this Obama much better than 'Health Care Obama.'

[Mens Health]

Affirmation action is a good thing, but US has to have a system that encourages and maintain excellency too. Do not let "real" gifted students bored in the classroom. NSF should have more money for this important activity too. Does either Obama or Mccain think of this? I do not hear from them yet.
Do you think foreign scientists will stay in US for ever to save US? If not, please pay attention to children (our homegrown products). Please really love USA, both candidates. You do not have to win because your Democrats or Republicans. Honestly, serve for the survival of our country.