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.
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.
- 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)