We’re all hearing a lot about the upcoming so-called “fiscal cliff.” It consists of two main things. First, automatic cuts in spending coming on December 31st – half in defense, and half in domestic programs. The other part of the cliff is the expiration of the so-called Bush tax cuts on December 31st. This week I’m going to focus on the expiring tax cuts.
The battle lines between President Obama and Congressional Democrats on one hand, and Congressional Republicans on the other hand, are the following. Most Republicans believe that the problem is that Washington is overspending, not that we are undertaxing. Therefore, we should not raise taxes on anyone, period. (And of course if tax cuts are allowed to expire, that has the same effect as raising taxes.)
The Democrats and President Obama say that 98% of the tax cuts are good, and should remain the same. (This is, according to them, the middle class.) However, the reduced tax rates on the top 2% of Americans is bad, and their taxes should be raised.
At least that’s what Democrats say now. But that’s not what they said when Republicans in Congress and President Bush passed the tax cuts back in 2001 and 2003.
I know. I remember. I was there.
Over and over Democrats would go to the floor of the House to rail against the tax cuts. They made the same case through the media. According to Democrats, these tax cuts were only “tax cuts for the rich.” Allegedly, none of the tax cuts went to the middle class.
A few examples. Nancy Pelosi was the leader of the Democrats in the House. Here’s what she had to say. “I urge my colleagues to reject this reckless, irresponsible Republican tax cut for millionaires that leaves working families out in the cold.” She went on to say, “The Republican tax plan overwhelmingly benefits those who need it least at the expense of the working families of America.” (Now she want to keep 98% of these terribly unfair tax cuts.)
Congressman Steny Hoyer of Maryland, who was, and still is today, the number two Democrat in the House, said the Republican tax cuts were “extraordinarily unfair to middle-income tax payers while advantaging wealthy people.” (Now he wants to keep 98% of these terribly unfair tax cuts.)
And New York Congressman Charlie Rangel, who was the lead Democrat on the Ways and Means Committee (the tax-writing committee) at the time, said that the Republican tax cut plan amounted to “if you are not rich, you are not entitled to a tax cut.” He concluded by proclaiming “Republicans… should be ashamed of themselves for what they are doing … to the good people of the United States of America.” (And Charlie too now wants to keep 98% of these terribly unfair tax cuts.)
The hypocrisy is overwhelming. A good trial lawyer would ask, “were they lying then, or are they lying now.”
Or both.