This one is very good.
Two years ago, Obama had to eat crow and extend the Bush tax cuts. Now it’s payback time. And behind their arrogance lies a belief that the GOP cannot say no. For if the Bush tax cuts and the payroll tax cuts expire on Jan. 1, Americans will face the highest tax hike in history.
– Every family earning up to $100,000 would see 2 percent of its income lopped off, as the employee half of the Social Security tax rises from 4.2 to 6.2. percent. The discretionary income of Middle Americans would be ravaged.
– The federal tax rate on capital gains will rise from 15 percent to a maximum 24.7 percent, a jump of 60 percent.
– The federal tax rate on interest and dividends will triple from 15 percent to a maximum 44.7 percent.
– Where $5 million of an estate can now be passed on to one’s heirs non-taxed, that will be cut to $1 million. And the death tax rate would shoot from 35 percent to a neo-Marxist 55 percent.
Even Senate Democrats fear this would force a selloff or breakup of family farms and family businesses at death. Yet somewhere, the radical socialist Saul Alinsky, who inspired the young community organizer, is smiling.
What to do?
Forget the deal. Walk away from the talks with Geithner. Pass an extension of the payroll tax cut, and send it to Harry Reid. Pass the Bush tax cuts, and send them to Harry Reid and say:
“Harry, you are going to have to pass this extension of the tax cuts, or kill them, or send us a counteroffer. Do nothing, and you, not we, will take America over the cliff.”
When Sen. Edmund Ross rose to cast the decisive vote in the impeachment trial of President Andrew Johnson, he said, “I looked down into my own political grave.”
Reviled by the radicals of his era, Ross yet made it into JFK’s “Profiles in Courage.” We are at such a moment.
Indeed we are, and the Democrats are going to own this one, big time. Ignorant overreach has consequences and the Democrats are going to reap the whirlwind come 2014 and so will the establishment Republicans as well.