Your morning jolt: If a deal’s at stake, consider bigger tax hikes, says Saxby Chambliss
Signs of pessimism in Washington, over Congress’ inability to reach a deficit reduction agreement in the next seven days, includes this from Politico.com:
Supercommittee co-chairman Jeb Hensarling (R-Texas), speaking bluntly to a closed House Republican meeting Tuesday said any deal that the panel produces will either be an “abject [failure] or a ‘kiss your sister agreement.’”
One assumes that [failure] is something unprintable. On the other hand, green sprigs of hope include the decision by U.S. Sen. Tom Coburn, R-Okla., to release a 37-page report this week critical of government subsidies for wealthy Americans.
He called it “Subsidies of the Rich and Famous.” From the Associated Press:
The report found that in an average year, those earning $1 million or more each year benefit from tax breaks and federal grant programs totaling $30 billion. His report noted that in tax year 2009, nearly 1,500 millionaires paid no federal income tax.
Among the government subsidies cited in the report are unemployment checks, farm subsidies and funds for the preservation of ranches and estates.
Read the report here. The best line from a section on mortgage deductions for second and third homes:
Even a yacht can be considered a second residence, as long as the luxury boat has a sleeping, cooking and toilet facility and an individual lives in it for at least two weeks a year.
On a similar note, Bloomberg/Business Week reports that the European turmoil over Greece and Italy, has some Republicans in Washington rethinking their opposition to tax increases as part of a deficit-reduction deal. The piece ends with this:
Senator Saxby Chambliss, a Georgia Republican, said his party’s lawmakers should consider bigger tax increases if it would lead to a larger debt-reduction deal, because the political price they would pay will essentially be the same.
“You’re going to be criticized by the same people irrespective of what the number is,” said Chambliss.
***
Now that he has been restored to the top tier of GOP candidates for president, it’s no surprise that the scrutiny of former U.S. House speaker Newt Gingrich has resumed. From the Washington Post:
Newt Gingrich made between $1.6 million and $1.8 million in consulting fees from two contracts with mortgage company Freddie Mac, according to two people familiar with the arrangement.
Previous reports had put the cash at a single payment of $300,000.
***
A look by OpenSecrets.org at the wealth of members of Congress says U.S. Rep. Sanford Bishop, D-Albany, may be among the poorest of its 535 members – and could be as much as $430,000 in debt. The same report says that nearly half of Congress – 47 percent — are millionaires. In that category, among Georgia members, U.S. Rep. Tom Price, R-Roswell, edged out U.S. Sen. Johnny Isakson.
***
Darrell “No Relation” Galloway, chairman of the 14th District GOP, reports this morning that Walker County Sheriff Steve Wilson and Tax Commissioner Carolyn Walker have renounced their Democratic affiliation and joined the Republican camp. Their defection was put together by Walker GOP chairman Nathan Smith. State GOP chairman Sue Everhart attended the Tuesday evening festivities.
Transportation Secretary Ray LaHood, center, speaks with reporters about the Savannah Harbor Expansion Project during an event at the Georgia Ports container terminal Tuesday. AP/Georgia Ports Authority, Stephen Morton
***
First thing this morning, to show that he’s a polite winner, Gov. Nathan Deal issued a press release pledging that he and U.S. Sens. Saxby Chambliss and Johnny Isakson would “support efforts to deepen not only the Port of Savannah but also the Port of Charleston.”
On Tuesday, after a tour of the Port of Savannah with Deal and Atlanta Mayor Kasim Reed, U.S. Transportation Secretary Ray LaHood gave a much-needed thumbs-up to federal funding for a dredging of the Savannah River channel.
South Carolina and Georgia have been competing for the same federal cash. The difference, according to a report by Orlando Montoya of Georgia Public Broadcasting, is the power of The Ask.
In other words, that odd-couple trip to Washington by Deal, a Republican, and Reed, a Democrat, paid off:
As to why Savannah’s project merits funding over similar ones nationwide, LaHood says, Deal and Reed reached out.
“What I’m saying is that these guys called me, they came to see me, they talked to me about this port,” LaHood says. “When people come and see me, we funded 13 ports. We haven’t been ignoring ports.”
***
We’ll close this morning with a bit of weirdness – an email from an enterprising publicist:
”I was wondering if you would be interested in speaking to legendary mentalist The Amazing Kreskin about an offer that he’s extending to Herman Cain and his accusers. The world renowned mind reader has offered to meet with each accuser separately for 10 or 15 minutes and, by asking only a few questions and listening to their verbal responses and thoughts, will announce who is lying and who is telling the truth.”
Or, we could make a reservation for January and turn Kreskin — “‘Zing” to his friends? — loose on the General Assembly.
- By Jim Galloway, Political Insider
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94 comments Add your comment
Not So Casual Observer
November 16th, 2011
11:30 am
The 100 richest Americans have a total net worth of over $1 trillion but less than the annual deficit under Obama. Thus, confiscating their entire net worth would not cover the deficit for one year.
The idea promoted by the Left that somehow government has a larger claim to one individuals money than another flies in the face of the Left dream of “fairness”. But the Left will counter with an argument that the wealthy became so by climbing the backs of the workers.
The workers, however, would have no job but for the creativeness of their employers.
If the Left truly desires “fairness” then eliminate all of the unions, all of the welfare, all of the unemployment pay and every other social program. Throw them in the pool and find out who swims and who sinks. Those who have the strength of character to seek out employment will do so and the others can seek the nearest house of worship for assistance.
Buckhead Boy
November 16th, 2011
11:31 am
Yes, one would think that $1.6 million would buy more of a “historian” than a former assistant professor at West Georgia College who was denied tenure there after being booted from the history to the geography department.
Aquagirl
November 16th, 2011
11:32 am
The statement by Chambliss is if taxes are raised in the grand deal, whether it be $1 or $500B, the opposition will be the same.
Thanks for re-stating my point, I’m not sure why you think I’m the one who missed anything. If you oppose raising taxes by $1, your concern is clearly political. And you’re concerned about your voting drones turning on you for that $1 tax raise, because you crossed Grover Norquist’s symbolic line. Your opposition to taxes isn’t because you think the economy is going to collapse and put people out of work, which is the standard Republican “thought” on this subject.
On behalf of America, Anthony, let me apologize for NCLB. It has apparently left you unable to either read, or understand your imagined zinger is a public faceplant.
@tc
November 16th, 2011
11:32 am
So you are impressed that Rep Bishop is a $430k in debt! He is a poor business person, irresponsible, and makes poor decisions is why he is $430k in debt. And he has a key role in decisions that impact the health of our economy. You think that makes sense! That kind of thinking and leadership is exactly why our country is in the mess that it is!!
Reminds me of someone else…hmmmm…Our illustrious new republican Governor
JR
November 16th, 2011
11:33 am
I continue to be perplexed at how many people, from politicians to people who post on internet message boards, that continue to support liberal policies and the charlatans who practice liberalism. Liberalism has failed EVERY time it’s been tried. Liberalism has NEVER succeeded in solving any problem facing the US, or any other country. It has created many untold problems, but has never solved any. Yet people continue to march like lemmings to the likes of Obama. I don’t get it. Is it shortsightedness? Do people really think they can continue to get their government handout and the country will continue to prosper. Maybe people don’t care what happens to the country, as long as they get their freebee. Obama talks about sacrificing. Well, the ones who need to start sacrificing are the ones living off the government dole. The rest of us don’t have enough sacrifice left in us to continue to support you.
And Sen. Chambliss, be careful. You’re precariously close to facing a primary defeat the next time you come up for reelection.
td
November 16th, 2011
11:33 am
ByteMe
November 16th, 2011
11:20 am
td: it’s the difference between “income” and “assets”. People with “assets” don’t need to pay “income” taxes… they pay cap gains instead…. at a lower rate than the little people pay.
Capital gains is included in your income every year (you just pay 15% on long term investments but 30% for short term). The numbers I provided includes capital gains for all classes (you do realize if you have a 401K that you are paying capital gains on it every year in your income taxes). If you go read the IRS tables you will see the last category is average tax rate (Income taxes plus cap gains minus deductions). The numbers say the top 1% average tax rate is 24.01% and the bottom 50% is 1.85%. The average tax rate reduces as you go down with each group.
clem
November 16th, 2011
11:33 am
just discussing fed income taxes not total picture, other taxes should be viewed as well at federal and state to see who and how much each group pays.
to that end on the state level: http://www.itepnet.org/whopays3.pdf
depends what side of fence you are on….should taxes be flat, %, progressive, consumption based etc…
here’s what i do know….income growth for top earners is growing faster %&absolute faster than middle and lower classes
and you have to get the money from the people who have it
td
November 16th, 2011
11:40 am
double
November 16th, 2011
11:27 am
centrist what if intrest ,dividend,qualified dividend,how is it reported,and taxed?
It is taxed at either 15% long term cap gain or 30% short term. The same amount your retirement income or 401K is taxed. If you ever looked at the distributions in your 401K account then you would find these different classifications of distributions. Do you want less money in your 401K or retirement accounts?
Centrist
November 16th, 2011
11:41 am
@ R U Kidding Me – Republicans HAVE offered revenue increases by expanding the tax base to include those who are not now paying taxes, reducing deductions, exemptions, and credits. But Democrats want to increase tax RATES on those who are already paying through the nose.
Where do you propose tax revenue to be increased?
Not So Casual Observer
November 16th, 2011
11:44 am
R U @ 11:30,
Actually the federal budget is approximately $3.7 trillion and revenues are approximatley $2.3 trillion creationg an annual deficit of approximately $1.4 trillion.
Now, the only change that has ever served to reduce debt and deficits is a booming economy. The Congress and administration, if actually concerned about the problem, should take whatever steps are required to grow the economy
Unfortunately, the Left is more concerned with continuing the class warfare chant, allowing George Soros to fund and create the OWS fiasco, turning this problem into a debate of 1% versus 99% (a totally false position) and diverting the left lemmings away from the spending problem that put us here.
“Demagogue Forever” should be the motto of the Left and the Democrats, for without the tactic of divide and abscure the problem – the Left has nothing.
Republicans seem intent on destroying themselves so the rest of us are here without representation.
Not So Casual Observer
November 16th, 2011
11:45 am
Should be “obscure…
td
November 16th, 2011
11:46 am
clem
November 16th, 2011
11:33 am
Those numbers are a little skewed. When the numbers are counted as households and not individuals then the increase in single parent households will make it look like the income level of the middle class is stagnant (one also remember that Child support, FS and other government entitlements are not counted as income). When you look at the rise in income of college graduates over the same time period then you will see that income has increased at near the same levels as the rich.
Ol' Timer
November 16th, 2011
11:47 am
@td: A guy running for political office once asked if it was fair for a bus driver in Atlanta to pay more income taxes than a millionaire — and then he answered his own question by saying it wasn’t. And, the person that posed that question was Ronald Reagan on a visit to Atlanta while running for his first term as President.
It will not save the economy, but it’s an issue of fundamental fairness. Particularly since tax revenue as a percentage of GDP is at a 60 year low.
Not So Casual Observer
November 16th, 2011
11:53 am
JR @ 11:33,
Agreed, and one step further – liberalism is at the root of EVERY problem the United States faces today.
This applies to SS and Medicare, terrorism, border security, the crashing value of the dollar, the social envy so well expressed by aquagirl, the failure in Viet Nam, the failure of GHW Bush to finish the job in Bahgdad 20 years ago, failed energy policy for the past 40 years, etc, etc.
Liberals seek utopia in the US, something like Africa or Afghanistan.
roughrider
November 16th, 2011
11:56 am
Funding for Fannie Mae and Freddie Mac needs to be cut if they can pay Newt 1.3 -1.5 million as a do nothing consultant. Newt cannot even handle his own money.
td
November 16th, 2011
11:57 am
Ol’ Timer
November 16th, 2011
11:47 am
I am sorry and I must be a little dense but for the life of me I can not see what is not fair about the top 1% earning 16% of all income and paying 36% of all taxes while the bottom 50% make 15% of all income and pay 2% of all taxes. Can you please point out why this is not “fair”?
Smoke
November 16th, 2011
11:58 am
Have you noticed that those who decry that Liberals are the root cause of all of our problems, are the same ones who criticize those who believe that racism still exist?
DannyX
November 16th, 2011
11:59 am
“He is a poor business person, irresponsible, and makes poor decisions is why he is $430k in debt.”
@tc, so what you are saying is that Rep Bishop should become a republican then run for Governor of Georgia?
clem
November 16th, 2011
12:00 pm
td, i may concede that, and i admit i am retired and don’t keep my nose to the day to day job salaries, but are you saying that college grads starting salaries are rising comparable to rich? guess my friends kids aren’t getting degrees in right sector. point me to something that verifies that if not too much trouble
clem
November 16th, 2011
12:02 pm
also, forgot to ask if you are comparing salaries with salaries or in the case of rich salaries plus non salaried income
clem
November 16th, 2011
12:06 pm
here’s a question on fairness issue……if a large part of our national budget is defense & homeland security, etc…..why is taxation just based on income taxation…..if i live in a big home and it’s worth increases with no federal tax impact why shouldn’t it be taxed like home insurance…..ie income has nothing to do with the protection of that asset?
td
November 16th, 2011
12:12 pm
clem
November 16th, 2011
12:00 pm
I will have to go back and try to find the data that showed the salaries again to be sure. I do not think it is starting salaries that they showed but the increase in salaries over time for college grads. I do remember that certain degrees like engineers, lawyers, financial sector and science fields increased at the greatest rate. I have no idea about you second post and that data probably can not be found because a college grad is more likely to contribute to and enjoy the benefits of non salaried income.
td
November 16th, 2011
12:16 pm
clem
November 16th, 2011
12:06 pm
I do not have an opinion on that question but would just add that do not the people that live in these mega houses not also have private security that they pay for out of their own pocket to protect their property and family?
clem
November 16th, 2011
12:24 pm
to
borrow from the hermanator…you are comparing apples with oranges…..
doubt private security can protect property from being overrun by foreign invaders or nuclear threats
Ron Mexico
November 16th, 2011
12:27 pm
Republicans – This arguement is irrelevant. Listen, Listen…………
There’s a white beluga whale pregnant at the georgia aquarium, Where’s Herman Cain…………..D9, D9, D9
The Great and Powerful Community Organizer
November 16th, 2011
12:41 pm
“…ignorance is up and intelligence continues on the downslide…”
How else could you explain how I was elected.
hfs
November 16th, 2011
1:23 pm
How many of these people spouting off about taxes do their own income taxes? That is making a wild assumption that they even pay income taxes. The dumbing down of education in this country is probably as bad in math as in any other subject. That may be why we see so little in the way of logical thinking. RECALL SAXBY CHAMBLISS!
Ronin
November 16th, 2011
1:31 pm
Hopefully enough Georgians will realize that Saxby is simply a career politician and is more interested in playing politics rather than solving issues. It’s time to enact term limits via the ballet box and vote him out of office.
clem
November 16th, 2011
1:35 pm
love how some people only can think of federal income taxes….talk about illogical
Atlantan
November 16th, 2011
2:09 pm
Obama thinks Hawaii is in Asia, but who is counting….
Saxby is no conservative. He was a demo(taxa)crat before he was a Republican and he continues to vote like the Tom Murphy Demo(taxa)crat he has always been.
Jqhiggins
November 16th, 2011
2:13 pm
Regarding subjecting the general assembly to the truth-finding powers of Mastermind Kreskin, I believe Mark Twain described Congress as America’s “only native criminal class.”
R U Kidding Me?
November 16th, 2011
2:16 pm
Centrist @ 11:41
Expanding the tax base should be priority #1. When 49% of American wage earners pay $0 income tax, there is something wrong. I don’t care if your income is $1,000 a year, you should be paying something, even if its only $100. Nobody should get a free ride. And those with high incomes, ought to pay a higher per centage than their secretaries who answer the phone. Buffett is right on that one.
honested
November 16th, 2011
2:29 pm
Saxby and everyone just needs to remember American recent history and revenue levels that worked…
1996-2000, higher marginal tax rates, fewer deductions, fewer arbitrary accelerated depreciation and we had a surplus and a diminishing national debt.
2001-2008, the revenue plan that worked was flipped on it’s head and huge borrowing to finance one bungled war that should have been over in 3 years and one war of choice that had no legitimate reason.
But now the wrong-wing prefers to ignore the period that provided adequate revenue and pretend the ensuing disaster never happened.
Super committee or not, if truth is banned from the equation we can be sure no improvement will occur.
Centrist
November 16th, 2011
2:51 pm
@ R U Kidding Me?
Of course the tax base should be expanded – but Democrats buy votes by heavily taxing only a minority in the higher brackets who lose their deductions and exemptions. They, along with the Republicans are NOT going to increase taxes on the truly rich including themselves and their contributors who pay lower capital gains rates, get preferred credits, and trust loopholes.
The only way out of this mess is to expand the tax base, have the economy improve to collect more revenue, and MOST IMPORTANTLY – reduce government spending.
Atlantan
November 16th, 2011
2:57 pm
@ R U Kidding Me – the tax base should be expanded, but quoting the hypocrite Warren Buffet just takes away from your argument.
David
November 16th, 2011
3:12 pm
Well pigs do fly!!! The common people are saying the wealthiest have squeezed enough juice out of that lemon, there is nothing left; it’s not fair to ask us (99% ers) to pay more taxes to fund your next big tax cut. Here in Georgia, private jets owners, General Dynamics and Gulfstream, talked the governor into exempting them from sales tax on their aircraft repair parts, so to make up that money, the governor decided those who merely own cars will could make up the difference, let’s just tax them for parts and LABOR for auto repairs. The auto repair industry protested, but the private jet owners prevailed. Why?
Sam the Sham
November 16th, 2011
6:03 pm
When their yacht gets taxed by the feds, I promise YOUR car will be next. And most millionaires money has already been taxed. They’re just smart enough to save it.
Just Askin
November 16th, 2011
7:04 pm
Not being political. Not being mean. Just don’t understand. Why is Mayor Reed so concerned with the Port of Savannah? I understand why Gov. Deal is involved but why does he carry Mayor Reed with him?
The Truth
November 16th, 2011
8:05 pm
tbird
I certainly hope the Greene Co Tax Assessor has reduced the assessed values of the Reynolds. Those developments are broke, banks threatening foreclosure, property values tanking. There have been no legitimate offers made on the golf courses. Giving the poor real estate market, given the market around the lake, given the foreclosures and depressed property values it seems only logical that the Reynolds values should be reduced. Am I missing something? Why shouldnt values be reduced?
Philiopo
November 16th, 2011
8:29 pm
The answer to our deficit? Legalize pot and tax it!
clem
November 16th, 2011
8:48 pm
td, you really are misguided:
http://www.reuters.com/article/2011/11/16/us-usa-economy-middle-class-idUSTRE7AF2G520111116
and stanford is not bastion of liberals
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November 16th, 2011
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November 16th, 2011
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ME
November 17th, 2011
5:07 am
What difference does it make if you continue to raise taxes but you do not cut your spending? The only way to get out of debt is STOP spending money you do not have. Why do people keep thinking that if congree raises taxes, that will help? The more money they take in the more they are going to spend. It does not matter to them how much they take in because it is not their money and they could careless about you or me. The only way to stop all this mess is vote them out but the voters across the US will not do it. They will continue to whine and cry about everything but why you have a chance to do something about it you refuse to vote against the ones who are causing all this mess. So to be honest, most of the voters across the US are a bigger problem than the politicans themselves. You have no one to blame for all this mess but yourself if you keep voting them back in office because u r telling them to do as they please because you do not care.