Tax Cut Compromise Will Help Fund NASCAR Tracks and Rum

December 15, 2010

(ChattahBox Op/Ed) – It’s bad enough that President Obama became an accomplice to the blackmailing of the American people with the now infamous tax compromise of 2010, but recently published data from the non partisan Joint Commission on Taxation smacks of the kind of hypocrisy that tease at the idea of revolution.  The hypocrisy is shared by both political Parties, but I hold the Republicans in contempt of the Constitution for continuing to lie to all of us in the name of fiscal responsibility and what they keep telling us is a clear mandate from the voters.

Earmarks…remember them?  Republicans signed a letter that was sent to the President and paraded around to the media extolling their insistence that not one earmark would be allowed until the tax deal was done and the budget deal was completed.  They lied yet again.  Here is a partial list of what the tax compromise Bill titled HR 4853 includes:

  • Income Tax Extensions through 2012: $545 Billion
    -Bush Tax Cuts, extend through: $408 Billion
    -Alternative Minimum Tax protection: $137 Billion
  • New Payroll Tax Cut for 2011: $111 Billion
  • Business, Investment and Other Tax Extensions: $77.2 Billion
    Includes:
    – Depreciation and other business incentives, through 2012: $22 Billion
    – Research and experimentation tax credit, through 2011: $13.3 Billion
    – State and local sales tax deduction, through 2011: $5.5 Billion
    – Ethanol tax credit extension, through 2011: $4.8 Billion
    – Restaurant and retail tax credit for capital improvement, through 2011: $3.6 Billion
    – Biodiesel and renewable diesel tax credit, through 2011: $2 Billion
    – Tuition tax deduction, through 2011: $1.2 Billion
    – Railroad track maintenance tax credit, through 2011: $330 Million
    – Rum excise tax change, to increase the tax floor on rum from Puerto Rico and Virgin Islands:
    $262 Million
    – Washington DC investment tax credit, through 2011: $138 Million
    – NASCAR and other race tracks, credit for capital improvement. Through 2011: $36 Million
    – Mine rescue team training credit, extend through 2011: $5 Million
  • Estate Tax Change/Cut for 2011: $68 Billion
  • Unemployment Extension for 2011: $57 Billion

Obviously you don’t need a degree in Economics to see that there are items here that have nothing to do with our understanding of what this compromise was about.  The added items are called in the political world sweeteners for obvious reasons.  They are added to appease some lawmakers and to encourage them to vote for something they weren’t totally happy with.  It’s another way of saying Earmarks!

The cost of this tax compromise, and all the sweeteners, will tally almost $900 billion dollars and its all debt.  None of it is paid for in any way.  And for those of you have screamed that we have spent billions of dollars funding wars in the Middle East while our own have suffered, relax because this Bill will surpass the costs of spending for the wars in Iraq and Afghanistan COMBINED.

For all the good that is in this Bill, it must be comforting to NASCAR fans to know that the race tracks you rush to will be paid for by tax dollars.  What a relief that is.  I know I will sleep better knowing that item is covered.

I realize this Bill has lots of good things in it.  I realize it will keep billions of dollars in taxpayer pockets, and I don’t have a problem with the, per se, but continuing to ignore the reality of the debt this Bill creates and what a gift it is for the wealthiest Americans is still and always will be wrong.

$476 billion of this debt is a direct gift to the wealthiest Americans.

I’m watching and taking notes.  Something will happen today on this Bill.  The Senate will surely pass it today.  The House is still threatening to derail it, but I have serious doubts that it will be anything more than loud conversation that will go mostly ignored.  Be that what it is, get ready to swallow it and move on.

My anger stems from only one simple issue and one simple solution.  President Obama should have played hard ball on this and just refused to extend the Bush tax cuts and insisted on the rest, save the Earmarks.  He would have won.  It would have been a colossal political battle and it would have been messy and nasty, and it would have unified a nation in need of something to feel good about, but he would have won.

Tony Trupiano is a former national syndicated progressive radio talk show host, author, and a former candidate for Congress. He is also a nationally recognized media trainer.  He can be reached at tony@mediatony.com


Comments

One Response to “Tax Cut Compromise Will Help Fund NASCAR Tracks and Rum”

  1. znuttyone on December 19th, 2010 6:52 am

    Actually, just perusing this list, it looks like we are comparing apples to oranges. Almost all these on the list are either the prevention of a tax increase or a reduction in taxes on a business entity that would otherwise be required to pay those taxes. If you rightfully and logically understand that all taxes are ultimately paid by the consumer,(what you thought a business just took it on the chin or it comes out of the CEO’s salary, wow.. you might want to use logic and think for a change, they roll the cost of products, services including all taxes into the price of goods and services..) then these are simply decreasing the burden on consumers, otherwise the taxes are simply passed onto the consumer. Most people that are upset with earmarks are upset with the idea of giving away tax revenue, i.e money taken from American tax payers and given to special interest groups for some ridiculous pet project.

    If we want jobs in this country, then if a company manufactures or delivers a service utilizing 60% of the labor in the geographic boundaries of the United States, then that entity owes not federal tax. We will have an immediate growth in manufacturing industry as this will give businesses here in the US a competitive advantage, it will also encourage companies world wide to build manufacturing facilities here in this country getting goods closer to the consumer reduces time to market, reduces shipping cost and the combination of no taxes and these operational cost means their product can be priced much more competitively against others. The overall tax revenues would be increased due to the higher number of employed paying taxes.. and the taxes are no longer hidden in products, but the payee actually can see the true cost of government services.

    IMO.. this is a win, win.. lets quite with the Republican and Democrat finger pointing.. start thinking outside the box.

    oh well if nothing else I can at least enjoy watching the races with a little rum 🙂

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