A GOP Dilemma: Oppose Obama or Oppose Tax Cuts?

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The 2009 stimulus bill included a tax cut called the Making Work Pay tax credit. Bruce Bartlett writes about what happened last year, when it was set to expire:

At the end of 2010, all of the tax cuts enacted during the George W. Bush administration were scheduled to expire, as well as the Making Work Pay credit. Although President Obama wanted the tax cuts for the rich to expire on schedule, Republicans insisted on an all-or-nothing strategy. Republicans also asked that the Making Work Pay credit be replaced by a temporary two-percentage-point cut in the employees’ share of the payroll tax.

….In short, the payroll tax cut was a Republican initiative. So why did they turn against it? The answer is unclear.

Unclear? Let’s roll the tape:

  • 2009: Obama favored the Making Work Pay tax credit. Republicans were opposed.
  • 2010: Obama wanted to keep the MWP and initially opposed the payroll tax cut. Republicans supported it.
  • 2011: Obama is in favor of extending the payroll tax cut. Republicans are now opposed.

Do you see the trend? Sure you do.

Also of note: Bruce includes a chart from the Tax Policy Center showing why Republicans wanted to replace the MWP with a payroll tax cut in the first place. Partly to annoy Obama, of course, but it turns out that the payroll tax cut is far friendlier to rich people than the MWP. The absolute dollar amounts are small enough to be a rounding error for the truly wealthy, but I guess it’s the principle that counts.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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