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Fiscal cliff deal includes $76 billion in corporate tax breaks

January 3, 2013

 While Barack Obama was running for reelection he stated over and over again that it was time for the wealthy to pay their fair share. He claimed that he would fight to keep taxes from going up on the middle class while promising he would make the millionaires and billionaires contribute more. He claimed that he would not let the Republicans hold the middle class hostage in the fiscal cliff negotiations.

  On January 2nd the Congress finally passed fiscal cliff legislation and despite claims made by the Congress and the president this bill does not stop taxes from going up on 98% of Americans–in fact, taxes are actually going up on 77% of Americans. (Yes, that does include the middle class.)

 Promise number one broken, but how about raising taxes on the rich? Well, for the most part if you are rich your taxes are going up as well…..as long as you are not a movie producer, rum manufacturer, or a green energy company, because in that case there is a good chance you will be getting part of the $76 billion in corporate tax credits which were slipped into the legislation.

    Barack Obama’s defenders will probably say that he must have fought against this aspect of the bill but had to give in as part of the give and take of  the negotiating process, but they would be wrong. In fact it was Barack Obama himself who insisted this language be included in the bill.

A Republican Senate aide familiar with the cliff negotiations tells me the White House wanted permanent extensions of a whole slew of corporate tax credits. When Senate Republicans said no, “the White House insisted that the exact language” of the Baucus bill be included in the fiscal cliff deal. “They were absolutely insistent,” another aide tells me.

  So it was the man who once called himself a warrior for the middle class who signed legislation which raises taxes on most Americans while he insisted that tax breaks continue for certain corporations.

    None of this is surprising but I wonder how many people who voted for   Barack Obama thinking that he would be different because they bought into his class warfare rhetoric are feeling just a little bit duped.

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12 Comments leave one →
  1. John Carey permalink
    January 3, 2013 7:34 am

    This whole deal was a sham. All it did was show me that they’re all in it together and to make matters worse is John Boehner will probably retain his speakership because there it take courage to do the right thing and vote him out. We need to start looking an alternative to the Republican Party.

    • January 3, 2013 7:46 am

      I agree John and the more I think about it the more I am convinced that you were right about this deal having been struck awhile ago. I think some of us have already started looking for a third party and that is why so many people stayed home in 2012. There is very little difference between the two parties and if Boehner doesn’t go it will remain that way.

  2. January 3, 2013 8:39 am

    It appears to me that this fiscal cliff deal does everything its supporters claim it doesn’t.

    • January 3, 2013 10:26 pm

      And the MSM is complicit in the lies!

  3. January 3, 2013 9:05 am

    Well, from Spain we think that the most important is save the deal and avoid the fiscal cliff. Then we have to discuss about where US Goverment has to cut or obtain money towards taxes: corporations, rich people … A big step to save global economy was taken with this deal. America´s fiscal debate is open

    I wrote something about this topic bases on some US newspapers and what I have listened in some US media broadcasating.
    http://nocionesdeeconomiayempresa.wordpress.com/2013/01/03/high-earners-facing-first-major-tax-increase-in-years/

    • January 3, 2013 10:29 pm

      Taxes have just gone up on nearly all Americans while tax breaks to certain corporations were handed out, this was not a good start and we can expect that no cuts will ever be made. We are in real trouble here and not enough people seem to realize it.

  4. MaddMedic permalink
    January 3, 2013 11:03 am

    Reblogged this on Freedom Is Just Another Word….

    • January 3, 2013 10:29 pm

      Thank you.

  5. January 3, 2013 11:37 am

    “Reward friends and punish eneimies” is Obama’s code. Besides, he calls what he did “investments”.

    • January 3, 2013 10:30 pm

      I believe they call that quid pro quo, and yes, that is Obama’s way.

  6. Betrayed permalink
    January 3, 2013 12:40 pm

    Yes, this deal sucked. My congressman voted no. Thank god. A hedge fund manager making a billion a year will now pay a 20% “carried interest” tax rate, up from 15%, Boy howdy! Same with someone who made 50 million off of a capitol gain. I pay 54.9% off of all my income because I work 50 to 80 hours a week. I am so blessed! 39.6% plus 1.45% x2 plus 6.2% x2. I am the real small businessperson getting really really really screwed.

    The rich pay a little more, but nowhere near their fair share. We all keep getting screwed.

    • January 3, 2013 10:32 pm

      My congressman was the only one in the New Hampshire delegation who voted against this bill. Unfortunately this was the last vote he will take as my congressman as he was replaced by a person who would have voted for it today.

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