Who’s Controlling Spending Now, Part II

On January 2nd I wrote these words:

“After campaigning for so many months about the “massive deficit” and
faulting Republicans for massive increases in government spending, will we now
see the Democrats restore limited government spending and less pork-barrel
spending? Nope.

They will increase taxes “on the wealthy” – which for practical purposes is
every living working person – increase pork-barrel spending and begin rebuilding
the welfare state, and watch the deficit rise even farther with barely a word
said. Mark my words.”

I was scoffed at.

This flash just in from AP, via Drudge:

“Democrats are not ruling out raising taxes for the wealthiest people to help pay for tax cuts for middle-income families, House Speaker Nancy Pelosi said.”

Pelosi’s actual words:

“As we review what we get from ... collecting our taxes a [sic] reducing waste, fraud and abuse, investing in education and in initiatives which will bring money into the treasury, it may be that tax cuts for those making over a certain amount of money, $500,000 a year, might be more important to the American people than ignoring the educational and health needs of America's children.”

(Need I even point out how asinine that statement is. The nerve!)

*****

“What we're saying is Democrats propose tax cuts for middle-income families. And we want to have 'pay-go,' no new deficit spending. We're not going to start with repealing tax cuts, but they certainly are not off the table for people making over half a million dollars a year,” Pelosi said.”

(Nancy Pelosi; "Face the Nation," 1/7/07)

The big thing that you should take away from reading this article is that the American people are certainly not in the mood for a tax increase – apparently for anyone.

The days of focus groups and “polling as policy” didn’t go out with the Clintons; Pelosi would never make a statement like “it may be that tax cuts for those making over a certain amount of money, $500,000 a year, might be more important to the American people than ignoring the educational and health needs of America's children” if the majority of the American people were wanting to raise taxes – even on the wealthy.
If the Democrats truly believed they were on the right side of the taxation issue, they would produce plan, after plan, after plan on increasing taxes. Make no mistake; they are doing this – as her statement about “initiatives which will bring money into the treasury” indicates, but to get the American public to accept this, they have to create a “boogie-man” that the public can hate. So every one making $500,000 per year: you’re the boogie men. So for historical purposes, Nancy Pelosi has just defined who “the rich” are: those making over half a million per year.

Here’s Nancy’s plan of action as in her own words:

1. “Collecting our taxes….” (I would have love to let her defend the “our” in that statement.) Look forward to having the IRS become even more aggressive about collecting anything you owe them.
2. “Reducing waste, fraud and abuse….” This statement would be great if what she meant was the end of the proverbial “$500.00 hammer.” This, though is not what she meant. Read into it “investigate Halliburton contracts.”
3. "Investing in education...." Read; “more money into the teacher’s unions, and more money per pupil dumped into failing public schools for initiatives that have nothing to do with the “three R’s.” Can you say “increased pork-barrel spending?”

Need more evidence that you wallet in now in danger?

“Democratic Rep. Charles Rangel of New York, the new chairman of the tax-writing House Ways and Means Committee, is seeking GOP cooperation in making inroads on bloated tax laws. ‘We have to look at all of the deductions, all of the credits, and to come up with what we think we can do,’ he said. ‘Is it going to be difficult? You bet your life.’”

Again, if you are sopping “the rich” who deserve it, why is this going to be “difficult?” Truth is those “bloated tax laws” are going to be deductions and credits that the vast majority of tax filers use, not just “the rich.” Every one will find out that you can be “rich” at $50K per year.

Remember when increased capital gains taxes were supposed to stop “the rich” from prospering? The ones who really felt the pinch were those people who sold their homes at a profit during the housing boom. The increased equity left a lot of regular working people paying a lot of money on capital gains taxes on their homes when the sale price of a rancher worth $95,000 turned into $165,000.00.

If you didn’t pay the gains taxes, woe unto you: the Pelsoi IRS Collection agency is getting ready to take you down. Hard.

I say again, for those conservatives and Republicans who stayed home to teach our side a lesson I hope you enjoy it because you’re about to pay for it.

*****
Previously:
Who’s Controlling Spending Now?