Taxes and the Do Nothing Congress

In today’s Washington Post Sen. Patty Murray (D-WA) is quoted as saying, “If we can’t get a good deal, a balanced deal that calls on the wealthy to pay their fair share, then I will absolutely continue this debate into 2013,” Bold words from the party that has not even submitted, let alone voted, on a budget in three years—even the two years they had an iron clad majority in both houses.  Some $600 billion dollars worth of tax hikes and spending cuts will take place automatically in January.  The Democrats are counting on both tax payers and tax users being upset by this. 

            Murray’s speech, by the way, is not going to be delivered on the floor of the Senate, where it might actually lead to debate, compromise and action—that would be way too much to ask from this dismally impotent Congress.  No, Ms Murray is offering her, “…here I stand” musings to the like-minded theorists at the Brookings Institute.  I can see the solemn head nodding, the fingertips closed in a pyramid of intellectual focus, and hear the, “ahhhh, yes” mantra from here.  What a bunch of supercilious nonsense.  President Obama has already promised the Democrats on the hill that he will veto any bill that maintains the Bush era tax cuts for those making over $250,000.  The Democrats call this a tax break for the wealthy.  Now, let’s have a little disclosure here.  I do not have a fiscal dog in this fight.  My husband and I are living on the income of retired school teachers and no where near that income threshold.  We lived frugal lives, got as much education as we could, and worked two jobs more often than one.  But, I do not consider people in the $250,000 income level to be, “the rich.”  In my mind, rich is when your money works for you and not the other way around.  Most of the people in the $250K area are working for every penny.  They frequently are two income households and even more often are small business owners, employing less that 30 people, and working every single day.  These people operate on thin profit margins and live and die by the rhythm of the market place. 

            Any tax increase that targets people with an income of $250,000 is a middle class tax increase.  Sen. Murray doesn’t get that.  President Obama doesn’t get that.  The Hollywood stars and multi-millionaires that support the Democrats have so many lawyers, accountants and loop-holes protecting them that they don’t worry about tax increases.  Look at Denise Rich, the Clinton friend and bundler (I’m assuming in Clinton’s case that still means a fund-raiser), who recently renounced her American citizenship to escape paying taxes.  Neither will these superrich be touched by the $1.5 billion dollar spending cuts.  They will cluck their tongues at it, but none of these cuts involve them so it is just lip service.  

            The Republicans have offered the debate that Murray says she is looking for. In the same article Rep. Jeb Hensarling (R-TX) says, “We were on the record saying we would agree to a conventionally scored tax increase if they would clear out the tax code, make it fairer, flatter and simpler and begin to take us off the road to bankruptcy on entitlements.”  When Murray says she needs a partner in discussions she is using rhetoric to cover an obstreperous refusal to compromise.   Action would mean a commitment to reality.  I don’t think reality is on the agenda this year.

            Protect both ends of the middle class and keep the faith.