Wednesday, July 30, 2014

No compromise

November 8, 2010 |

President Barack Obama has said and repeated it recently that he would compromise on extending the tax cuts that President George W. Bush used to pull the country out of the recesi0n that set in at the end of President Bill Clinton’s second term. His idea of compromise is to end the tax cuts for those making $200,000 as single filers and $250,000 as married filers.

We see no reason the new Republican majority in the House of Representatives should accede to this “compromise.” Those in this category are primarily small business owners, the ones who will generate the jobs this country needs. Raising taxes while unemployment remains at 9.5 percent (12.4 in California) is counterproductive.

Besides, there are already plenty of extra taxes already built in to the tax code for this class of taxpayers — things like the alternative minimum tax, phase-outs of various deductions and credits. It is guaranteed the government is already getting its pound of flesh out of this class of taxpayers.

The tax code has become so complicated, especially for this category of taxpayer, that tax returns can no longer be completed by pencil, pen and tax rate charts. Tax returns now require a tax software program to complete the complex computations. Some of the calculations are so bizarre one wonders what maniacal Congress member or senator came up with these. How did that person persuade the committee members to go along with these wacky, convoluted calculations? But, wait, House Speaker Nancy Pelosi can answer that question: “We’ll have to pass the bill to find out what’s in it.”

The the U.S. Tax Code is almost 72,000 pages and growing. That’s 56 times longer than Tolstoy’s “War and Peace.” It is not just a real stumper for average taxpayers.

“More recently, it was reported that 41 aides in President Obama’s White House owe the IRS about $831,000. In fact, federal government employees (including some IRS workers!) and government retirees owe more than $3 billion in back taxes,” according to Frank Gunter, an associate professor of economics at Lehigh University.

We all may be forced to learn something about the tax code, but how many have read War and Peace or Edward Gibbons’ the Decline and Fall of the Roman Empire, even once, let alone 56 times?

Our message to Congress is extend the tax cuts — all of them. Find some sympatico Democrats in the Senate who will agree to extend all the tax cuts. Then let President Obama think about whether he wants to veto tax cuts for everyone.

We want the new Republican majority to  be the Frank Sinatra Congress: “I did it my way.”

No compromise. Don’t wimp out in the face of criticism from the administration, crazy Harry Reid and Nancy Pelosi: “The record shows I took the blows/And I did it my way.”



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