Not deterred by polls or fiscal integrity, the Republican Congress continued to gut the future of the country to fund empty tax giveaways to the rich. Never mind the ballooning cost of their war, nor the continuing deficits and looming debt, it was important to lock in the big boys' favorites, dividend and capital gains cuts, for two more years -- the years after 2008. Thus a gain of $41,000 for millionaires and $100 at best for the middle income, according to the Tax Policy Center.
Capital gains taxes were raised to the rates of ordinary income during the 1986 Tax Reform Act as a trade-off for reducing marginal income tax rates for the top tiers. Since then, it has been a Bush family tradition to renege on the 1986 deal. With full control of Congress, W has done it in style, to the great detriment of us and our children.
Notice that not one penny of the Scroogian December cuts in Medicaid, student loans, veterans health, child support enforcement and the rest has gone to deficit reduction. It has all, and four times more, gone to these benefits for the predator cult.
This reconciliation bill came in under $70 billion, which it did by duplicity and worse, to avoid exposing the action to filibuster in the Senate. So this one has the least defensible tax cuts, and the more popular -- including my favorite, the sales tax deduction -- are coming in a second round. Part of the staging. This was the bill that was the litmus test for fiscal responsibility.
In any event, if you were worried that there would be a lull in the feasting at the public trough by the rich, or that Republicans would run from W's falling approval into some sort of fiscal responsibility or fairness, you can rest easy tonight. They have continued their unbroken string of dishonest, incompetent, corrupt, profligate budgets.
Details at CBPP
or the Tax Policy Center