In case you were wondering how badly the average American can expect to be screwed financially these next two years, wonder no more. You will be screwed blue, tattooed and left to wander in the hills (to use an old expression I kept hearing as a child growing up in Kansas).
Understand, I'm not speaking to the top 10-15% of the taxpayers. You folks are going to just love the next two years since just about every single tax that you now pay will either be dramatically lowered or abolished altogether. Also, just so that you go to bed even happier, there aren't even of those pesky little "liberal" clauses that make you improve the lot of the other 85-90% of America to qualify for these benefits. All you have to do is sit back, relax, and get wealthier by the day.
I am, however, speaking to that other 85-90% of the American people. You're in for some real treats since you will see zero benefits for yourself or your family these next two years. It's your fault, of course, since you weren't wealthy enough to buy your very own representative to kneel before you and do as you wish. Nope! You just have to go to work every day, knowing that your check will get smaller and smaller or disappear altogether when your job is given to some 12 year old Vietnamese girl for $0.16 a day.
Let's get specific, shall we?
First off, the right's tactic or calling the estate tax the "death tax" will pay off handsomely for the 2% of all estates in America. Remember, the only time that the estate tax even came into play was on estates worth a minimum of $1 million. Starting last year, with the able assistance of the weenie Democrats, the moron's tax bill phased the estate tax out over a ten year period. In order to play games with the budgets between then and now, though, a little auditing trick was added to this phase out that said that it would return to its 2000 level after the tenth year. That way, the billions lost to the budget would magically reappear in 2010.
Now, you and I both know that the only reason that clause to reinstate the tax at the end of ten years was passed was that the right figured that the weenie democrats wouldn't get any smarter or braver in the next decade (and 2002 proved them perfectly correct). When 2010 came around, the right knew that they could cow the Dems into just making the cuts permanent at that point. Well, the mid-term elections made all that financial and political skullduggery completely unnecessary. Since the Democrats totally lost any hope of being taken seriously for the next fifty years or so, the government is now totally in the hands of the Nazis from the right. They will simply enact legislation that will abolish the estate tax before 2004, meaning that there will never be another opportunity to re-enact that tax.
The cost to the budget? Tens of billions of dollars or more over the next ten years. Money saved by the highest 2% in taxpayers? That same tens of billions of dollars. The net benefit to he other 98% of Americans? Zero.
As long as the right is at it, they can also remove a little problem that the 2001 tax cut bill threatened those poor, defenseless multi-millionaires with. Inherited capital gains have always been completely free of taxes. The 2001 bill put that wonderful bounty for the wealthy at risk due to the confusing language used. You can be absolutely certain that it will remain tax free for ever now that the top 2% of Americans are running the show.
Loss to the budget? Billions. Gain for the top 2%? Billions. Benefits to the other 98%? Zero.
The right is once again lying to the other 98% of Americans by claiming that they will accelerate the next two tax cuts scheduled in 2004 and 2006 into effect in 2003. They proclaim that this will "put more money into the average American's pockets". Well, that may be true if you consider the upper third of all Americans in income to be "the average" but the truth will be the same as the 2001 tax cuts, the real Americans will see little if any decreases in their tax rates (the 2001 bill actually raised taxes on the bottom ten percent). Instead, 100% of all future tax cuts will be directed at the top one third of all taxpayers. no one else will see a penny's worth of decrease.
Loss to the budget? Hundreds of billions of dollars or more. Benefits to the wealthy? Hundreds of billions of dollars or more. Benefits to the bottom two thirds of all American taxpayers? Zero.
Corporate America won't be forgotten in all the near sexual frenzy of giving the nation away to the wealthy, either. Oh, no, they're already lining up their little lobbyists to write some tax cuts into the next two year's worth of tax bills. In fact, the very first present to the right's owners will be a "temporary" tax credit for investment. While that might look good on the surface, the bills will be so broadly written that it will probably include improvements to the suites for the suits as "investments".
More likely, though, will be direct benefits like another round of decreasing the already minimal corporate taxes paid today. There won't even be the appearance of fairness that often accompanies these cuts where corporations are expected to trade subsidies for the tax cuts. This season will see more subsidies and greater tax cuts and larger and larger loopholes for them to drive their chauffeured Rolls Royce through.
Once again, loss to the budget? Hundreds of billions of dollars. Benefits for the corporations? Hundreds of billions of dollars. Benefits to the other 98% of American taxpayers? Zero.
How about dividends, that huge source of income for the very wealthy that the Flat Tax advocates always omit from paying taxes? The right whines that dividends shouldn't be "taxed twice", once as reported corporate profit and again as income to the shareholder. The right wants to make all dividends tax free to the investor creating a huge market for dividend paying stocks.
You'll notice, though, that there isn't any call for eliminating the taxes that the real human beings pay from their paychecks, even though that money is "taxed twice" in exactly the same manner; as corporate income and then as payroll to the poor slobs who do all the real work. I guess that doesn't matter much to the right.
Again, loss to the budget? Tens or hundreds of billions of dollars. Benefits to the wealthy shareholders? Tens or hundreds of billions of dollars. Benefits to real human beings? Zero.
How about all that money that was lost when the stock market took the dive that I forecast it would back in 1999? did the wealthy and the suits in the suites lose much at all when their companies and stocks went south? Nah, they already knew that they had stolen everything they could from the company and then alerted their other wealthy buddies to unload their stock and then walked away with billions. Cost to the wealthy? Zero. Cost to actual human beings (the workers and others who had invested in these companies through their 401(k)s and IRAs? Hundreds of billions of dollars.
Now, let's look at exactly where the damages will come from in the next ten years and how the criminals in government will cover up their tracks and blame every debt on Clinton and every "benefit" on the moron (who probably has to have his mommy balance his checkbook for him).
Consider the fact that the majority of economists in government credited the tax increases of 1990 and 1993 for the eventual federal surplus of nearly $6 trillion and the healthiest economy in America's history. Now, consider the reaction when this wee fact was brought up to Council of Economic Advisers Chairman Glenn Hubbard (a right winger who never saw a tax cut he didn't lust after), "That's Rubinomics, and we think it's completely wrong."
Okay then, what does this avaristic little toad and his right wing friends plan to do?
First, accelerate the 2001 tax cuts and make them permanent. This, alone, will cost the federal budget $1.35 trillion.
Also, eliminate any pretense that these tax cuts will pay for themselves through a healthier economy and an increase in payroll taxes through increased employment. Granted, this regime and their cohorts who now control Congress, the White House and the Supreme Court will pretend to discuss "dynamic scoring" but it will be an even greater charade than over the past few years.
Next up, completely forget about the idiocy of the "Social Security Lock box" that the moron and his right wing Democrat "opponent" Gore lied about in 2000. Instead, this regime and congress will steal every possible penny from that trust fund and use it to hide the huge cost of the tax cuts for the wealthy and their corporate owners. So, according to the Congressional Budget Office, the budget will see a $1.5 trillion increase in deficits over the next ten years. By stealing the funds from Social Security, they can add $2.5 triilion to the budget, meaning that it will appear to be a $1 trillion surplus. So far, so good.
But what to do about the fact that the CBO predicts that making those tax cuts for the wealthy permanent will cut at least $956 billion out of that "surplus"? Also, instead of using the truly stupid economic trick of pretending that federal spending will remain exactly at the same level as FY 2000, how about if the added costs of the Federal Privacy Invasion Agency (known as the Homeland Security Agency to the unknowing), the cost of the dozens of wars that these criminals are planning in order to steal the world's oil supplies, the increasing cost of education and Medicare and prescription drugs and on and on which, according o the CBO, will add another $1.8 trillion to our debt? Who will pay for all of that?
Then you add in the $123 billion that the Urban-Brookings Tax Policy Center predicts will disappear from the budget as the child credits and other middle-class hand-outs are speeded into the tax code and the$230 billion that the repeal of the estate tax will cost (which gives 91% of its benefits to the top 5% of all taxpayers) and the fact that lower taxes on stock dividends adds another $140 billion and removing the "alternate minimum tax" will add a final $225 billion. Taken altogether, that adds up to approximately $2.5 trillion in deficits by 2012.
Now, let's be honest with ourselves (since there isn't an elected official who will be honest with us currently holding office). This regime, which may well become a dictatorship before the 2004 elections, won't even consider cutting back on he lavish spending on the wars and invasions and such that they have planned for our dear old planet Earth. They wouldn't even consider the idea that the wealthy should pay the majority of the costs for our sons and daughters going off to murder and die in keeping that wealth secure and growing. they won't, for a second, accept any plan would force any of their owners to pay their fair share of anything, particularly since they've already convinced the truly stupid American public that tax cuts for the wealthy are good and teachers and doctors and social programs and consumer protections and the like are all "liberal" and, thus, evil and wicked.
Nope, instead, in the next two years, you will witness the expansion of the carnage in defense of the evil and greedy and the contraction of any funds for the schools and senior citizens and health care and clean air or water or whatever. The American public will just keep right on staring at their flickering boxes, drooling, drinking, buying, and remaining as dim-witted and completely uninformed as they are today and as was proven on 11/5/2002. You will watch as your children and grandchildren are sent away to die. You will watch as they return, burned out shells of themselves, and you will find that the VA simply doesn't exist in any form that can ever again help any American veteran (this has already begun with the moron refusing to sign any defense bill that includes any increased funds for the medical or psychological assistance for veterans). You will see Hell become substanbce right here in the land of stupid and the home or the witless. Sadly, all of us who hate the moron and all that he and his criminal buddies stand for will have to wade through the feces of the elite along with those who caused it all. The difference will be that we will know what is happening while the majority will think its all just more chocolate pudding from their benefactors in government.
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