Is a “millionaire tax” on the table for the House GOP?
But conversations with more than a dozen Republicans — from across the ideological spectrum — tell a different story. Hardly anyone ruled out a tax rate increase on the wealthy.
“I certainly think we have to have an open mind, and that includes any and all scenarios,” Florida Rep. Tom Rooney said of fiscal cliff negotiations, noting that he will support Boehner in his negotiations. “Do I believe that higher taxes on small-business owners will help with jobs? Hell no. We have to find a way forward, or we’re going to have to go back to our constituencies just like last Congress saying, ‘We couldn’t come up with anything for this country.’”
This isn’t only a fear ricocheting through the rank and file. Some higher-ranking Republicans, including South Carolina Rep. Tim Scott, who was elected to leadership for a second term last week, say they know lawmakers look like they could buckle on a million-dollar threshold.
“Oh, absolutely,” Scott said when asked if some of his fellow Republicans will support the increase. “People are actually coming out saying that.” Scott said he would oppose tax hikes even if the threshold is raised.
Blowback
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What’s amazing to me is that they’re going to raise taxes in return for… continued spending increases. It would actually be better for America if we let the fiscal cliff hit because then we’d get real spending cuts!
Doomberg on November 15, 2012 at 1:54 PM
What a bunch of spineless wimps.
topdawg on November 15, 2012 at 1:54 PM
If that was the compromise, they’d be crazy not to go for it. C’mon, a millionaire’s tax? If they block that, they’ll never live it down in 2014 and 2016.
Doughboy on November 15, 2012 at 1:57 PM
It’s a crony shop, they dont want the money to stop flowing.
the_nile on November 15, 2012 at 1:57 PM
For a party that is and should be skeptical of the media, they sure do embrace it’s narratives.
MechanicalBill on November 15, 2012 at 1:58 PM
Just let all of the Bush tax cuts expire. Let taxes go up on everyone, and get your 10% across-the-board budget cuts.
Caiwyn on November 15, 2012 at 1:59 PM
I hope so. Tax everyone above $250k/year at 100%. Eat the rich. Make them pay their fair share. ™
The Rogue Tomato on November 15, 2012 at 2:00 PM
They should accept the”millionaires” tax on condition of having a congress tax.
MechanicalBill on November 15, 2012 at 2:00 PM
Hey, 8 out of the 10 wealthiest counties in America voted for Obama. Elections have consequenses…
dczombie on November 15, 2012 at 2:01 PM
And what do they get in return RE cuts? Nothing? A mere “reduction in the rate of growth”?
changer1701 on November 15, 2012 at 2:05 PM
Give Obama exactly what he wants, an increase on $250K+. It takes that weapon out of his hand and when the downturn comes, as we all know it is, he will own it. People can criticize the GOP because they haven’t seen the alternate outcome with Obama’s taxes. Let them see it.
Mark1971 on November 15, 2012 at 2:08 PM
A millionaire tax, that will be passed down to the consumer.
I can see it now. Hollywood actors will say they don’t mind paying more, but what you won’t hear is them asking for higher salaries to make up for the loss in taxes. Of course that will all be passed down.
darwin on November 15, 2012 at 2:10 PM
A millionaire tax will bring in what … about 5 billion maybe a year?
darwin on November 15, 2012 at 2:11 PM
I say give it to him with a string attached: If the deficit it not cut in half by next year, the increase is reversed and all taxed collected on it would be refunded.
Odysseus on November 15, 2012 at 2:13 PM
Agree on a “millionaire’s tax” in exchange for the rest of the Bush Tax Cuts being made permanent.
Abby Adams on November 15, 2012 at 2:13 PM
we need a unified R party to say Yes on millonaires tax (say 60 percent above 1M)…it will be fun to see schumer’s eye’s bug out.
he’ll start cussing out the Rs big time
r keller on November 15, 2012 at 2:15 PM
Well, okay so long as it doesn’t cut into my inherita–
D’OH!!
Ladysmith CulchaVulcha on November 15, 2012 at 2:16 PM
Is anyone in the media ever going to mention that income tax increases don’t really hit the millionaires (even when targeted)? Is anyone in the GOP? That this is all a dog and pony show to distract from real fiscal issues? I realize there are few millionaires so their votes aren’t worth pursuing, but both sides seem content to allow the real fiscal conversations to be diverted.
MechanicalBill on November 15, 2012 at 2:16 PM
But for some reason, Obama seems to think that $200,000 makes you a millionaire.
Oh wait…Math Is Hard.
ProfShadow on November 15, 2012 at 2:17 PM
I was a millionaire once. Then I left Italy and exchanged my lira back into dollars.
CycloneCDB on November 15, 2012 at 2:19 PM
Heyyy…same thing happened to me with Thailand and the bhat!
Ladysmith CulchaVulcha on November 15, 2012 at 2:23 PM
Yeah – but what were you buying in Thailand?!?!?
In all seriousness – set the bar at $200k, then devalue the $#it out of the currency. Raise your hand if you’ll be surprised when it happens.
CycloneCDB on November 15, 2012 at 2:26 PM
What’s your point? The millionaire’s tax isn’t about revenue. It’s about punishing those who succeeded.
We need to stop defending the rich for now. Sure, the economy will suffer, but the rich themselves will be fine. Canada will certainly be happy for the influx of wealthy folks.
As others have said, that disarms the issue to some extent for the next election. And we might be able to get something in return.
I think we should tell the Dems to come up with whatever tax they want on the wealthy, up to and including a 100% net worth tax. It’s time to let the Dems enact their plan, so people can see how bad it works. But we need to be producing ads to TELL people what’s causing the problems, and what the GOP version of life would be like.
hawksruleva on November 15, 2012 at 2:26 PM
And, as someone said on another thread, we need a surtax on people making over $10 million a year. That would hit the movie stars and professional athletes (people who are likely 0bama voters) the hardest.
And make it a 75% tax rate so they really feel it.
UltimateBob on November 15, 2012 at 2:27 PM
This * 1000;
dogsoldier on November 15, 2012 at 2:28 PM
On every member of the government earning or with total combined weath over one million, and make the rest of the Bush TAX RATES permanent.
There ya go. Now that’s a plan.
dogsoldier on November 15, 2012 at 2:30 PM
The Buffet rule was about 3-4 billion a year. About 1/400 of the deficit.
This isn’t about fixing a deeply indebted nation – it’s the same old petty class warfare and playing to his idiot base.
Every population gets the government it deserves.
Chuck Schick on November 15, 2012 at 2:31 PM
LIB… Everyone pays more in taxes m’kay.
Illinidiva on November 15, 2012 at 2:33 PM
The upside to having outright anti-liberty statists in power (that would be the Democrats) is that it is highlighting just how anti-liberty and statist the Republican party is.
They resemble Hezbollah and Fatah.
Hezbollah believes in fast Jihad – missiles into school buses of jews, 6 year old suicide bombers, and so forth.
Fatah believes in a little small arms fire, turning up to ‘peace’ conferences and mugging it up for the camera.
At end they’re both Islamic Supremacists quite willing to kill individuals (the ultimate deprivation of liberty) to make a political point which will gain them power over others and financial benefit.
CorporatePiggy on November 15, 2012 at 2:35 PM
Annual deficits are now about a trillion a year.
Obama’s tax-the-rich part is supposed to net about $80 billion a year.
Victor Davis Hanson suggests that the GOP take the deal as long as Obama agrees to cut spending by $920 billion a year.
I say let him have the 39.6% rate. Make sure to commission a study on how much 39.6% tax money the Treasury actually receives. I’ll bet it’s far short of $80 billion. The 39.6% rate under Clinton yielded only a nominal amount of revenue. But the revenue poured in after Congress cut the CG tax rate from 28% to 20%. But Obama doesn’t understand that inverse relationship, because it’s all about “fairness” for him.
BuckeyeSam on November 15, 2012 at 2:35 PM
Aaah, the age old debate:
0bama doesn’t understand = he’s stupid
OR
0bama understands but doesn’t care = he’s evil.
Which is it? I still say it can be both. There have been many dictators throughout history who were both evil and not very bright. 0bama is among that class.
UltimateBob on November 15, 2012 at 2:44 PM
BINGO!
Justice: When you are punished for stealing money.
Social Justice: When you are punished for earning money.
The Rogue Tomato on November 15, 2012 at 2:45 PM
It is both. There are things he is ill-equipped to understand and/or doesn’t want to know.
And there are things he knows pretty clearly and simply doesn’t care about.
NPD is like that.
Now shush and let him eat his waffle.
CorporatePiggy on November 15, 2012 at 2:48 PM
Raising my hand because I’m just not the pessimistic sort. But please remind me when your dystopian scenario comes to pass!
Ladysmith CulchaVulcha on November 15, 2012 at 2:48 PM
Bobby Jindal thinks this is GREAT news!
portlandon on November 15, 2012 at 2:55 PM
The only way Republicans should agree to tax hikes is if they’re tied to present-day spending cuts. If Obama wants $160 billion a year in tax hikes, then there shoud also be $160 billion in spending cuts–immediately, not in the “out years.”
Outlander on November 15, 2012 at 2:56 PM
Let’s end the deductibility of state income taxes on your federal income tax, and stop the massive giveaway to the poorly run democratic states.
How much will the California state income tax increase alone cost us?
slickwillie2001 on November 15, 2012 at 2:57 PM
Unfortunately the modern Democrat party “doesn’t do” budgets, at least not in the past 3 years.
visions on November 15, 2012 at 3:10 PM
Unfortunately, my current representative is a
Democrat, so he won’t care about my views.
However, any Republican who wishes to vote for this with the express intention of saying “This won’t work, but elections have consequences. Enjoy the double-dip and if you want it fixed, send us a competent president”, will suffer no consequences for having voted for the tax increase from me, at least.
The people want this, apparently. Give it to them hard and fast.
makattak on November 15, 2012 at 3:10 PM
Sigh. That should have been a strike, not a quote. Oh well, he’s a moron, notwithstanding.
makattak on November 15, 2012 at 3:11 PM
35% tax rate on salary and investment income over $1 million. No deductions other than charitable contributions.
25% tax rate on income from Subchapter S small business, and on corporations.
Kill the deduction for state and local income taxes.
Close the loopholes that allow movie studios to avoid taxes on billion-dollar movies.
$5 excise tax on movie and concert tickets, monthly cable TV bills, and smartphone data plans.
In other words, tax the hell out of the Obama voters, and cut taxes on small business.
rockmom on November 15, 2012 at 3:15 PM
Actually I thought it was cool to have it as a quote. It was like someone edited the audiotape and spliced the word “moron” in there.
Regardless, the words “Democrat” and “moron” can be used interchangeably.
UltimateBob on November 15, 2012 at 3:20 PM
Shhhhhh. It’s amazing how little federal income tax one can pay when living in California with a few kids and paying a mortgage even when making well over $100k. I’m surprised more people don’t talk about it. Is it a little wink wink secret or do people just not understand? One of my pet peeves is when someone like Hannity starts listing his litany of taxes and adds the state and federal percents. It doesn’t work like that doofus, first you pay your state and local percent and then the federal on what is left, not the total. It’s close until you get to states with high taxes, then it really does reduce the federal liability. And the other two big deductions are mortgage, kids, and charitable giving, you can really get it down. And then another flat out child credit on top! If they get rid of that it would *really* hurt.
rose-of-sharon on November 15, 2012 at 3:49 PM
Seeing how a majority of “rich americans” voted for BHO i can’t seem to find a reason not to compromise on this millionaire tax.
cjv209 on November 15, 2012 at 3:51 PM
Good summary which happens to mostly match my thinking: And I’m saying to myself, why am I going to war for these people? All this effort to try to protect the “job creators” and they’re voting for Obama and ever larger government and more taxes. I think it’s time to give them what they want! I would love to see a Republican bring forth a bill to tax the sh*t out of those making over $500k (the 1%).
slickwillie2001 on November 15, 2012 at 3:58 PM
Ok, ya’ll, let’s not loose sight of conservative principles and start talking about taxes in the context of punishment. The point is the lost opportunity cost of the resources not belonging to the individuals who will stimulate the economy with it, creating jobs either by expanding their business or even just spending it, versus it being in the governments hands being wasted and abused. Taxes don’t just hurt the high income earners, but all of us by hurting the overall economy, if that is the natural consequences of the election that people are getting what they voted for, fine, but the pain is for everyone whether their own taxes are going up or not.
rose-of-sharon on November 15, 2012 at 4:10 PM
By all means. Let’s punish hardworking people who build and then sell their business and find themselves millionaires for the first time.
stvnscott on November 15, 2012 at 4:17 PM