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No Extension for Unemployment, and Still No Tax Breaks for Middle Class (11-19-10)

with 6 comments

I intended to go into a long post today, but I wisely forgot my notes at work. So, I will do my best to remember what I can. And the rest, I will make up as I go along.

So, I want to first start with something that was just passed. Or, not passed, for that matter. Yesterday, Congress had a vote for unemployment benefits. People who have been unemployed from the failing economy are often called 99ers. This is because their unemployment benefits run for 99 weeks. It didn’t pass. Republicans feared it would add too much burden to the debt. The extension was for only 3 months more.

During the last week of November, the first wave of 99ers are set to lose their benefits. Now, before I go any further, let me explain. My first thought with this a while back was, ‘Wow! 99 weeks of unemployment. That’s crazy to be on it that long, and why should they get it any longer than that.” But the fact of the matter is, this isn’t a handful of people. This is entire states that have been hit by the recession. Hard. Think Michigan, and the auto industry.

There are people who may not be college educated. Most are older. They know a trade, and they do it well. But because of cut backs, and often outsourcing, their livelihood has been ripped out from under them. They do not know anything else. And to find a job in a failing industry; Well, it’s difficult. Next to impossible.

So, until the economy turns around, these people are stuck. Please allow me to throw some figures at you:

Unemployment gives $310/week. That’s hardly livable.

The unemployment rate right now is 9%. Allow me to refer back to an older post of mine when I say, in a strong economy, the unemployment rate should be around 5%. This allows for competition.

Never in 75 years, when the unemployment rate was this high, have we cut unemployment benefits.

The cost for 1 year for unemployment benefits is around $65 billion. This is money that will keep shelter over the heads of Americans, food on the plates of families, and clothes on their backs.

(http://thehill.com/blogs/on-the-money/801-economy/129829-house-democrats-introduce-bill-to-extend-unemployment-benefits-for-three-months)

Well, yesterday, the Now for the disheartening facts.

Just after Thanksgiving, 800,000 people will lose their unemployment benefits.

By the end of the year, over 2 million people will be without any benefits or a paycheck.

If you think things are bad now, they are only going to get worse. And the rational behind blocking the bill, because of the debt, is absolutely absurd. First off, Tea Party members are crying over earmarks, which only makes up 1/2 of 1% of the debt, and cut benefits to millions of Americans. But in the meantime, the Republican party will rally for the upper 2% to get their tax breaks. This will add 750 Billion dollars to the already burning debt. The small cost that it would take to provide the unemployed with additional benefits is a drop in the bucket compared.

The fact of the matter is, we have 2 un-fianaced wars. We have for over 10 years now. Trickle down theory is just that, a theory. It’s not proven. The fact of the matter is, it is the 98% of Americans that are the spenders. They spend near every last dollar they earn. That is what gets the economy rolling.

(Note: I hate the term “lower.” We are not the lower class. We are the ex-middle class that has been waged in war for the past 10 years, and near destroyed. However, when 90% of the wealth in America is controlled by the top 2%, then what else can you call us. That’s all we are to them. Peasants.)

That being said, the lower 98% are the ones that spawn the economy. There would be no tax hike under the new policy for us. But the upper 2% would see a tax increase of 3% on anything made above $250,000. Now, many think this is unreasonable. Under the trickle down theory, these millionaires will reinvest into their companies, spur new jobs, which will put more people working, which will help the economy. It all sounds good on paper, but that’s where it ends. In reality, the money sits in their bank accounts, and never gets any further. Instead of using the money to reinvest in America (so to speak), they are using the money to send jobs to China or Mexico.

However, if you raise the taxes on the top 2%, here’s what happens. They look for ways to get tax breaks. One way to do this, is to hide the money into your company. You buy new equipment, hire new employees, etc. All of this is a write off. That will lower their taxes down to a rate that they are paying now. In the process, middle class Americans have more spending money, have more jobs, have higher wages. That is what makes a strong economy. Take a look at past trends. How was the economy under Reagan? Bush, Sr? Clinton? Bush, Jr.?

The fact of the matter is, Trickle Down was instituted and theorized by an Actor. Somebody who made his living on deceiving the public to the truth. He did it to pad the wallets of the wealthy, and to do it at the cost of the “lower” 98%. They are basing their entire economic philosophy off of a man who had Alzheimer’s. I’m sorry, that isn’t somebody that I would trust with my personal finances.

Here is my suggestion for Democrats. Let the Bush tax breaks expire. All of them. Then rewrite the bill. When the vote comes up, let the Republicans expose themselves and show who they are really looking out for. Because they will not try to help the “lower” 98% by any means. They would rather allow all taxes go up, than to see only the “lower” 98% go down. If they truly cared for the average American, this wouldn’t be an issue, and they wouldn’t be willing to sabotage the bill to protect us.

Personally, I would rather see my taxes go up, and be put to good use (infrastructure, reducing the debt, community programs, etc) than to see this country raped anymore by the careless spending, with no means of financing.

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Written by aversas

19/11/2010 at 9:12 PM

6 Responses

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  1. Hiring new employee’s is what gives us peasants a job. I never got a job from someone that was more poor than I. Keeping the Bush tax cuts gives some stability to a nation that’s hunkering down on their spend because they don’t know what’s coming next. Otherwise we can keep marching on towards Communism.

    Robin

    20/11/2010 at 8:59 AM

    • I may write more on this for my next post, because this seems to be the common thought on the Right. But if you would just look up some facts on the issue, from reliable sources (not Fox News or any of the talking heads on the Right, but rather real reliable sources), you would see that these are all just talking points with nothing to back it up. The fact of the matter is, this tax breaks to the wealthy, is a theory. In practice, it doesn’t work. Just look at the past 10 years. How many jobs were created from these tax breaks? They were given to employers and corporations with the intent that they would put the money from the break into their company. But they didn’t and instead shipped jobs out of the country and built elsewhere, where they could work people at a cheaper wage.

      When Bush put the tax cuts in, they were intended to be temporary. Otherwise, he wouldn’t have had them expire after 10 years. And the corporations didn’t do what they promised, so why should they be given this again? Tax them at the Clinton rates, when this economy prospered, and get some money back into our system. If they want tax breaks, have them be forced into investing into their own corporation for breaks. That is how jobs are created. That is fact. You can look up online at job creation, and take a look who was in office and what the tax rate was at the time. Trickle Down theory is a 30 year old theory that has no evidence that it ever worked.

      And the last comment I want to make on your post is the one about communism. If anything, we are closer to a Fascist system, with corporations owning our congress (see Citizens United v. FEC). If we were headed towards communism, the gap between the rich and poor wouldn’t be so great. Trust me, we are 110% a Capitalist society. Besides, how is giving a tax break to the wealthy not considered “socialistic?” They are getting a free handout with tax breaks, are they not? Isn’t it kind of like wealthy welfare? THe fact of the matter is, paying taxes is one of the most patriotic and American things you can do. It’s needed for revenue for financing our war machine, improving our infrastructure, and helping out in our daily lives, helping people who truly need it, etc.

      And let me just add, my family is a real small business owner. We own a restaurant and bar, employ around 10 people, and are well managed. “Small Business” in Washington terms is any corporation that has 100 or less owners (shareholders) http://en.wikipedia.org/wiki/S_corporation. That isn’t the same small business as us. And the fact of the matter is, there have been more tax cuts and loans made available to small businesses under President Obama than any other president. This isn’t to bury them. This is to have everybody put in their fair share. Why should multi-millionaires be taxed at the same rate as everybody else? This isn’t going to sink anybody. It’s simply 3% on everything over $250,000. It used to be 90% under Eisenhower, and you know what, there were rich people and multi-millionaires back then, too.

      aversas

      20/11/2010 at 2:23 PM

  2. Facist, 110% Capitalist – lol, wealth redistribution is straight up communism. Government taking over banking institutions and Auto corporations is also straight up communism.

    Businesses left the US because it was financially beneficial to do so. They were escaping excessive government regulations, taxes and Unions. Unions and special interest groups own congress. Obama gave tax credits not tax cuts, which is better than nothing after doing so much damage, still a different animal.

    I find it incredibly sad that too many think that government should be in control of everything. Conservatives believe in paying taxes, they believe in government. Your small business may be well managed but our government isn’t.

    Robin

    21/11/2010 at 2:06 AM

  3. What we can agree on is what we should work together on, unless you look forward to communism and a one world government. Conservatives want constitutional adherence, they want to preserve our constitution and our sovereignty.

    Newt Gingrich was a major player in keeping the deficit balanced during the Clinton administration. FactCheck .org got their numbers from the Congressional Budget Office that only works the numbers they are given, proof of this is how they initially accepted ObamaCare was going to lower healthcare costs and be deficit neutral.

    I didn’t agree with Bush’s TARP but it wasn’t just Bush, it was a Democrat controlled House and Senate that voted it through. Obama voted yes and blamed Bush for the mess he inherited. Obama voted for his mess. Previously, both sides spent too much and both sides enacted laws that hurt the American economy. Because I believe Democrats are worse of the two evils is really here nor there. The damage is done and we can fix it.

    The real issue is that millions of fingers are in the pie trying to micromanage the economy. Our government has grown to be so large and convoluted it’s impossible to sort out or follow the money. They successfully keep us divided through infighting while they are sustaining and expanding their own existence at our expense.

    The rise of 501c(4) non profits (both dem. and rep.) don’t have to divulge where they get funding and can put a politician into pockets without us even knowing. Having the ability to circumvent the system is deemed a problem I agree should be fixed. If I want Unions to be politically neutered, then so should big corporations and special interest groups.

    If you’re suggesting we focus on leveling the playing field, eliminate corruption and reduce the size of government, we should certainly work together, lest we just be fools.

    Robin

    21/11/2010 at 1:20 PM

    • I agree with you that we need to be willing to work together, and the elimination of corruption. But corruption is something that will never be out of any system, from a mom and pop store to the government. I just question, where exactly is government too big for you? “ObamaCare” is a great talking point, but it isn’t real. There is no “ObamaCare.” It doesn’t exist. What there is a bi-partison agreement for insurance reform. What is bad about it? The fact that people cannot be denied for preexisting conditions? 35 million American’s can now have insurance? That you won’t be dropped if you get ill, and when you need insurance most? Personally, I would like to see single payer insurance. Every other industrialized country, and even a lot of developing countries offer it. Medicare for all. It works, and it works well. You work for an insurance company. I am sure you have seen the problems with it, people in desperate situations. When you are ill, you should be able to focus on getting well again, not if you will be able to make your mortgage at the end of the month. Which bill should you not pay. A raise in taxes is a big concern for a lot of people. But if you take what you pay for insurance premiums, medications, visits to the doctor, etc., even with a 5% tax, it wouldn’t come close to what you are paying out now.

      aversas

      21/11/2010 at 7:09 PM


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