There will be no compromise. Those are the words of the present Republican Whip, during his appearance on Fox so-called News’ Greta Van Susteren show – On The Record. The “no compromise” message is not only something said by Eric Cantor, but it is echoed by all the Republican leaders, including incoming House leader John Boehner and Senate Republican leader, Mitch McConnell.
Republican Eric Cantor
The question posted to Cantor was in reference to the Bush Tax Cuts set to expire at the end of this year. If the tax cuts expire, then the rates for everyone, middle class and the ultra rich, goes back to what they were during President Clinton’s administration.
Democrats are trying to continue the tax cut for middle class Americans and making those tax cuts permanent. Republicans on the other hand, are insisting on extending those tax cuts for millionaires and billionaires.
In an effort to compromise, Democrats have suggested their interest in proposing a permanent tax cut for the middle class, while extending those to the wealthy for one to two years. After the temporary extension expires, the rate for the wealthy goes back to what it was in the Clinton years.
Mrs. Van Sustern asked if there was any possible way for there to be compromise on this issue between now and the time the Republicans are take control of congress in January. Mr. Cantor replied with a resounding NO! He went on to say;
One of the ideas that we’ve seen floated is decoupling – that is we would extend the tax rate as they are for those making under two hundred thousand permanently or within the maximum budgetary window and somehow do it less of a time for those higher earners. That is just a signal right then and there that we are going to raise taxes on small businesses. That’s exactly what we don’t need right now.
This is the information the Republicans making this argument usually and conveniently leave out: In an New York Times article, written by David Kocieniewski and published on September 17th, 2010, the following was reported;
Despite that emotional appeal, Internal Revenue Service statistics indicate that only 3 percent of small businesses would be subject to the higher tax, and many studies of previous tax increases suggest that it would have minimal impact on hiring.
According to the Joint Committee on Taxation, 97 percent of all businesses owners do not earn enough to be subject to the higher rates, which would be levied on income of over $200,000 for individuals and $250,000 for families.
Even among the 750,000 businesses that would be subjected to the higher rates in 2011, many are sole proprietors — a classification so amorphous it can include everyone from corporate executives who earn income on rental property to entertainers, hedge fund managers and investment bankers. Because 80 percent of America’s 32 million businesses are sole proprietorships, 90 percent of the tax cut would be derived from businesses without employees.
Now that’s according to IRS statistics about the real classification of small businesses. But noted in this same article is another report pointing out the hypocritical idea parroted by the Eric Cantor and the Republican Party. The report stated that many large businesses file their taxes as a “small business,” partnerships or S corporations, mainly to avoid paying corporate taxes. More from the article;
But the way the I.R.S. classifies small businesses is vastly different from the public perception of the neighborhood dry cleaner or the small tool-and-die shop. A report released by the Joint Tax Committee in July found that many of the tax returns categorized as small businesses were actually filed by wealthy taxpayers who earned business income through limited partnerships or S corporations to allow their firms to avoid paying corporate taxes.
The study found that in 2005, 19,000 of those small businesses had revenue of more than $50 million.
These S corporations are the ones Eric Cantor and the Republicans are looking out for. These corporations make millions of dollars in profits each year, but according to the Republicans, these business will cease to exist if their tax rate goes back to what it was under Clinton, and according to these same Republicans, if these companies can’t get a tax break, then the average hard working American should not get one either. No compromise!
In addition to all the tax loop-holes that Corporations indulge in to avoid paying their fair share of taxes, Republicans are willing to stop the entire process and deny working families their permanent tax cuts, if these companies don’t get this additional tax cut too.
What’s amazing is that the people of this nation have been fooled, and the effort to keep them fooled is being demonstrated daily, by these Republicans, Fox News and Corporations.
Related articles
- Cantor says no deal on tax cuts (dailykos.com)
- Cantor opposes compromise to reach tax cut deal (dailykos.com)
- Republican Leader Cantor Urges Extending Tax Cut for Wealthy (businessweek.com)
While becoming a millionaire or a billionaire cannot be relegated as strictly an American phenomenon it would be truly un-American to deny a person the ability to become wealthy in this country. That is what a capitalist society is all about isn’t it? I’m certain the ‘Anointed One’ doesn’t deny that fact either. The argument here is that a man can work two jobs putting in 80 to 100 hours a week as a car assembler or chicken plucker to support his family bringing home $30,000 a year–and his labor, blood sweat and tears are deemed less tangible or valued than the man who works his way up the corporate ladder to became CEO making $2,000,000. What should be considered un-American is allowing the CEO to hold onto practically all of his paycheck while the “true red, white, and blue american” gets taxed enough for the both of them. His neighborhood H&R Block isn’t going to be able to qualify him for the loopholes that a weathier man’s accountant can. This is not conducive to a healthy American economy.
@conservative.
You’re right about one thing, and that is, this is America. A place where you are allowed to make as much money as your ambitions will allow.
But America is also a place of morals, and when there is already so much tax breaks and tax loop-holes geared towards the rich, it just seem wrong in every sense of the word is depriving the middle class their tax cuts, because the Extreme Rich didn’t get another one.
That’s just not right!
people who earn more than $250,000 are first off usually people who put in way more than you common 40 hours a week. also corporations is just a group of people living the american dream of setting out of a business venture in order to make as much money as they can. that is the free market american dream, that if you work hard then there is no limit to how big you can be and to restrict that is down right un american. now do i think that these corporations should do more with their money than keep it for themselves…of course but that is their personal choice which is another great thing about living in america, we have choices. and my final point is that just as ezra said that GOP leaders would not go on keith olbermann’s show believe me there are no democrats that will go on shaun hannity or any other conservative talk hosts show b/c if they have to talk about honest facts and policies then they will be very embarrassed. and i believe that GOP leaders wont go on the shows you speak of to be honest in would waste their time to talk to left wing nuts who are constantly just trying to spread ignorant agendas and defend how great “the annointed one” is doing when to be honest the proof is in the pudding. you can talk about how great the left is doing ,but let me tell you the walk they are walking out tells me that they are clueless about what true red, white, and blue americans want and what will truly help this country.
And there lies the problem. There are no more “serious interviewers.” I think the last one was Tim Russert and after his passing, what we’re left with are just Primadonnas all concerned with face time on television.
The facts are so easy to point out to these GOP liars, but they’re allowed to come on television/radio spew their talking points and go unchallenged, while at the same time, asking for donations. This is the “FOXNEWS” way. That is why FOX is infested with ex Republican politicians masquerading as political pundits. And that’s where the Eric Cantors and Mitch McConnells go to broadcast their lies.
Have you ever seen these GOP leaders on MSNBC’s Keith Olbermann or Rachel Maddow?
Exactly!
The next serious interviewers of Mr. Cantor should arm themselves with these facts about S corporations with 0 employees — belying the truth that these are small businesses that are creating jobs — and corner him into responding with counter facts (which he’ll pull out of thin air). The majority of middle class Americans need to know that the GOP is willing to scrap the proposal of giving them a break on already exorbitant taxes so that the super wealthy minority can keep their loop holes. This is unjust and unfair.