Tag: Obama Tax Cut Deal. Social Security

Not Good News!

I’ve been off and on the telephone this afternoon, after learning that Senator Durbin, was going to vote “yes” on the Obama Tax Cut Deal.  I asked, why?  Because of the compromise, I was told, i.e, child-care tax credit, $250 for Seniors and Disabled, earned income credit (which we’ve had for so long now, anyway).  I was trembling with anger.  I did go into a rant, not once, several times.  The last call I made, I asked point blank:  Why do we keep bending over backwards to the screaming, whining, already rich Republicans and a few Dems?  Sen. Durbin has lost my vote and so has President Obama, who’s demonstrated that he has a very good pair of knees!  Thank you, the Staffer said, and click!

The Roll Call is still going on, and it is being held open for Senators who have been unable to return due to inclimate weather conditions.

Right now, 79 Senators have voted for the bill, while 11 have voted against it!  

I am seeing stars.  Called Sen. Durbin’s office back again.  I have a proposal, I said –what if I simply offered my house and, whatever Social Security I may have coming to me, to the government now, instead, of it taking from me incrementally?  This is where we are headed — Americans have been and are being bled to death — what is to become of them?  We are headed toward 3rd world status — we have nothing left to give.  The wealthy will be walking amongst dead bodies on the streets — people who hung on as long as they could.  How on earth could things be so perverse.  I read the rules concerning Unemployment Insurance, why couldn’t we have simply extended those benefits, as is provided for in the rules, in bad economic times?  At the worst time of our country, we extend tax cuts that benefit the upper 1% to 2% of the wealthy to the tune of $700 billion to be paid back over the next 10 years.  And Social Security will be defunded by those still working Americans by 2% that will not be paid into Social Security Trust Funds, yet individuals must pay taxes on their total income for the year. . . . . I went on — I will not ever vote Republican, but Sen. Durbin has lost my vote.  She was the only one of the staffers I spoke to today that seemed to have any concern!

Yahoo/Reuters couldn’t wait to get the news out!  Tax deal clears first test in Congress!

By Andy Sullivan and Kim Dixon Andy Sullivan And Kim Dixon – 56 mins ago

WASHINGTON (Reuters) – President Barack Obama’s bipartisan tax plan was on its way to passing its first test in Congress on Monday but a major Wall Street firm warned that damage to America’s strained finances would outweigh any short-term economic boost.

The $858 billion package, which would keep lowered income-tax rates from expiring at the end of the year, picked up 62 votes in the 100-seat Senate. Voting continued but the tax measure had effectively passed a procedural hurdle and will now go to a full vote in the chamber on Tuesday or Wednesday.

Both chambers of Congress could approve the bill by the end of the week, despite complaints from many Democrats that Obama has given away too much to the Republicans who will soon enjoy greater clout in Washington.

“I think we’ll pass a bill, as opposed to simply not passing anything,” House of Representatives Democratic leader Steny Hoyer said at a news conference. He said he aimed to get a bill to Obama by the end of the week.

Income taxes would rise by an average of $3,000 per household if Congress doesn’t act by January 1 — an unlikely outcome, Hoyer said. [$3,000? for those below $200,000?]

Many economists say the deal could boost the sluggish economy, in part because of a payroll tax credit and extension of jobless benefits, at a time when Congress has shown little appetite for spending-based stimulus efforts. . . . .

But Moody’s Investors Service warned it could move a step closer to cutting the United States’ top-notch triple-A bond rating in the next two years if the package becomes law.

“From a credit perspective, the negative effects on government finance are likely to outweigh the positive effects of higher economic growth,” Moody’s analyst Steven Hess said in a report.

The report could give additional ammunition to Democrats in the House who say the package gives away too much to the country’s wealthiest 2 percent as the country is struggling with budget deficits that are higher as a percentage of the economy than any time since World War Two. . . . .

We can only hope that the House will remain steadfast in its stand against this dreadful bill, which will actually backfire against Americans.  There must be a way to demand that Unemployment Insurance be extended NOW without the “provisos” attached by Obama’s tax cut deal!