Eleven months after adopting stringent new rules aimed at reining in the federal deficit, the Senate last night shrugged off its pledge of fiscal rectitude and overwhelmingly approved a measure to spare millions of families from the growing reach of the alternative minimum tax without providing an offsetting tax increase.While Rep. Mike Ross and other Blue Dogs are concerned about controlling the rising deficit, being democrats they often forget (or compromise) that the major aspect is controlling the rising deficit is cutting costs, especially their collegue's pork projects. With regard to the AMT, they appeared more willing penalize the middle class with the AMT or to find another tax rather than to cut spending. Consider the following by Spree, Wake up America:
The Senate's 88 to 5 vote blew a $50 billion hole in the Democrats' promise not to pass any spending or tax measure that would add to the deficit. The outcome brought a furious response from conservative "Blue Dog" Democrats in the House, who assailed the Senate and vowed to block passage of any tax measure that would add a cent to the federal debt.
"We run for reelection every two years. They run every six years," fumed Rep. Mike Ross (D-AR). "Don't try to tell me the Senate can't take a tough vote."
Despite the heavy toll the AMT exacts on some middle-class taxpayers, Congress has been loath to repeal it outright because that would leave a trillion-dollar hole in the federal budget over 10 years. Instead, successive Congresses have opted for one-year "patches" that hide the long-term cost.
The Senate acted responsibly, the House did what they do so often and passed something just to say they passed it, knowing it didn't stand a chance of becoming law.
Take a good look at this graph, the top %5 of wage earners pays 54.36% of all Federal income taxes, the top 10% of wage earners pay 65.84% of all Federal income taxes and the top 50% of wage earners pays 96.54% of all Federal income taxes. The top 50% of wage earners already pays for everything except 3.46%. Instead of treating those that already pay to run our country like their own piggy banks to reach into, the House needs to use the other methods available to them to "offset" the monies that will be lost by the Senates bill.
Edward Morrisey explain just a few of the common sense solutions that Congress and the Senate keep ignoring: "Think about the scale for a moment. All it takes to save the taxpayers from a bigger bill or larger debt from a fix of the AMT is a reduction in spending of less than 2%. Four hundred and thirty-five Representatives apparently can’t figure this out, and neither can 100 Senators. Does anyone doubt that the federal budget has 1.67% fat, duplicative programs, inefficiencies, or flat-out waste? Why not get rid of that before looking for a tax to replace a tax?"
Senate Democratic leaders claims that they have done all they could to preserve their highly touted, pay-as-you-go -- or "paygo" -- rule, which says that any new entitlement spending or tax cuts would have to be offset by tax increases or spending cuts. They are always willing to use the "tax increase" option but they continue to ignore that the same "fix" could be done by reducing spending or even foregoing some of their much talked about "pork" aka earmarks. The pay-go is a good idea on paper but unless the House and the Senate are willing to reduce spending, it is an idea that cannot withstand the test of time.
Tags: AMT, Blue Dogs, Excessive spending, increased taxes, Mike Ross To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
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