A tax deal only the ultra-rich could love

By Harold Meyerson

Harold Meyerson

Harold Meyerson

How much do the newly enacted tax hikes on the wealthiest Americans actually affect them? Hardly at all.

Almost all of the debate that convulsed Capitol Hill in December concerned the reinstatement of the highest marginal tax rate on earned income — that is, on wages and salaries. But as Fitzgerald said, the rich are different from you and me, and one of the primary ways they’re different is that they don’t get their income from wages and salaries. Continue reading

Boehner’s Plan for Fiscal Showdown—Cut Social Security COLA to Pay for More Tax Cuts for the Rich

by Damon Silvers

Boehner-s-PlanOn Sunday night, House Speaker John Boehner made clear he would like to make a simple trade with President Obama. He asked the president to extend tax cuts on income between $250,000 and $1 million a year—a tax bonanza of nearly $400 billion over 10 years, about half of which would go to millionaires.

And how will we pay for this very expensive gift to the least needy among us? By cutting $122 billion in Social Security benefits from the neediest, including elderly seniors and people with disabilities who depend on the Social Security cost-of-living adjustment (the COLA) to keep inflation from eating away their benefits as they age and incur health care expenses. Moreover, this COLA cut affects current as well as future beneficiaries. Yesterday, press accounts said that President Obama offered to accept this cut to Social Security as part of a larger deal, which Boehner then rejected on Tuesday evening, saying he was going to take his “Plan B,” more tax cuts for the rich, to the House floor.  The AFL-CIO is calling on members of Congress and the president to oppose Boehner’s cuts to Social Security and his Plan B.   Here’s why: Boehner wants to cut the COLA through a technical change to the way the COLA is calculated, called the Chained Consumer Price Index or “chained” CPI. This index underestimates inflation for seniors and people with disabilities, according to 250 economists.

Call the White House at 202-456-1111; tell President Obama you oppose the “chained” CPI.
Continue reading

Follow

Get every new post delivered to your Inbox.

Join 1,219 other followers