Today seems like a slow fiscal cliff news day, after the drama of the past couple of days.
The only news seems to be that Obama is digging in on marginal tax rates:
President Obama on Tuesday rejected a GOP offer for avoiding the so-called fiscal cliff and underscored his refusal to accept any deal that does not increase income tax rates for top earners.In his first interview since reelection, Obama said the Republican plan offered Monday was “out of balance” and acknowledged that talks between the president and congressional Republicans were hung up on the tax rate dispute.“We’re going to have to see the rates on the top 2% go up. And we’re not going to be able to get a deal without it,” Obama told Bloomberg Television.
What’s left unsaid in all this is that tax rates on the “rich” are going up via Obamacare:
The U.S. Internal Revenue Service has released new rules for investment income taxes on capital gains and dividends earned by high-income individuals that passed Congress as part of the 2010 healthcare reform law.The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend incomeReleased late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals…Together, the two taxes are estimated to raise $317.7 billion over 10 years, a ccording to a J oint Committee on Taxation analysis released in June.
Since Obama insists that rates rise, and they are, what’s the problem?
Why can’t he take “tax rate hike” for an answer?
Because it’s not about rates or revenue. It’s about “fairness” and the deep emotional desire to get even with those who, he thinks, have taken advantage.
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