Middle and lower class workers see taxes rise so Obama can give Goldman Sachs a tax break

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Kailua Hawaii is situated on the East coast of Oʻahu, about a 14 mile drive from the Honolulu airport and much closer even to Kaneohe Marine Air Base. It’s home to about half a dozen exclusive hotels and it is also the Obama family vacation destination.

Last year Obama’s dog Bo visited some damage to the property the Obama’s rented so this year Obama issued an Executive Order guaranteeing that the taxpayers of the United States would make good for any damage Bo left this year.

It seems Barack Obama needs constant reminding that he is the President of the United States of America so he has built and shipped to Hawaii an exact replica of the White House gate. Obama also ordered a custom made Hawaii-themed golf bag for his enjoyment.

The Obama family vacation is estimated to cost the US taxpayer $20 million this year.

As I write Obama is either frolicking in the surf or hitting the links. He was so intent on his vacation that he had to autopen the fiscal cliff into law from Hawaii.

The Hawaiian setting makes for a very poignant contrast in the world of Barack Obama. And it is no small irony that Obama cavorts in the tropics having signed a into law a bill that raised taxes on the middle and lower class so that Goldman Sachs, among other wealthy entities, could enjoy corporate welfare courtesy of Harry Reid and Barack Obama.

Thus Michigan Democrat Debbie Stabenow was able to retain an accelerated tax write-off for owners of Nascar tracks (cost: $78 million) to benefit the paupers who control the Michigan International Speedway. New Mexico’s Jeff Bingaman saved a tax credit for companies operating in American Samoa ($62 million), including a StarKist factory.

Distillers are able to drink to a $222 million rum tax rebate. Perhaps this will help to finance more of those fabulous Bacardi TV ads with all those beautiful rich people. Businesses located on Indian reservations will receive $222 million in accelerated depreciation. And there are breaks for railroads, “New York Liberty Zone” bonds and so much more.

And the lower class is paying more so that Hollywood could get a tax break:

But a special award goes to Chris Dodd, the former Senator who now roams Gucci Gulch lobbying for Hollywood’s movie studios. The Senate summary of his tax victory is worth quoting in full: “The bill extends for two years, through 2013, the provision that allows film and television producers to expense the first $15 million of production costs incurred in the United States ($20 million if the costs are incurred in economically depressed areas in the United States).”

You gotta love that “depressed areas” bit. The impoverished impresarios of Brentwood get an extra writeoff if they take their film crews into, say, deepest Flatbush. Is that because they have to pay extra to the caterers from Dean & DeLuca to make the trip? It sure can’t be because they hire the jobless locals for the production crew. Those are union jobs, mate, and don’t you forget it.

The Joint Tax Committee says this Hollywood special will cost the Treasury a mere $248 million over 10 years, but over fiscal years 2013 and 2014 the cost is really $430 million because it is supposed to expire at the end of this year. In reality Mr. Dodd will wrangle another extension next year, and the year after that, and . . . . Investing a couple million in Mr. Dodd in return for $430 million in tax breaks sure beats trying to make better movies.

Senators even voted against listing the perks:

The Senators even voted down, 14-10, an amendment to list the corporate interests that receive tax perks on a government website. This “tax extenders” bill passed Mr. Baucus’s committee, 19-5 (see the table nearby),

Those tax breaks didn’t find their way into the bill until Harry Reid and Barack Obama put them in there:

and then sat waiting until Harry Reid and the White House stuffed it wholesale into the “fiscal cliff” bill.

As it turns out, middle class workers will take a bigger hit than will the high end.

Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the nonpartisan Tax Policy Center.

Earners in the latter group will pay an average 1.3 percent more – or an additional $2,711 – in taxes this year, while workers making between $30,000 and $200,000 will see their paychecks shrink by as much as 1.7 percent – or up to $1,784 – the D.C.-based think tank reported.

Overall, nearly 80 percent of households will pay more money to the federal government as a result of the fiscal cliff deal.

GE scooped up a huge amount of tax credits in this bill. GE paid no taxes in 2010. GE CEO Jeff Immelt is the head of Obama’s Jobs Council.

Poor Lloyd Blankfein, CEO of Goldman, scraped by with $16 million in 2011. A guy like that needs all the tax breaks he can get.

Goldman’s tax breaks are estimated to be $1.6 billion.

This from the guy who said he wanted to end “corporate welfare.”

And then something else caught my eye today:

“”President Barack Obama and congressional leaders have indicated they’d like to see a “grand bargain” on taxes, which would feature lower overall rates but close a slew of loopholes.”

This was Mitt Romney’s plan!

But details aside, the tax cap is a big idea, and potentially a very good one. The proposal makes economic sense to the extent that it helps to pay for lower marginal tax rates. Lower rates with fewer deductions improve the incentive for investing and taking risks based on the best return on capital rather than favoring one kind of investment (say, housing) over another. This would help economic growth.

When it was Romney’s plan, it was stupid. It was wrong. It was widely derided by Obama and the left. When it comes out of Obama’s mouth it’s gold.

If you voted for Barack Obama, you’re an idiot. A blithering, terminal idiot. It’s not even open for discussion.

Re-electing Obama was akin to the proverbial second marriage- the triumph of hope over experience.

Just plain stupid.

DrJohn has been a health care professional for more than 30 years. In addition to clinical practice he has done extensive research and has published widely with over 70 original articles and abstracts in the peer-reviewed literature. DrJohn is well known in his field and has lectured on every continent except for Antarctica. He has been married to the same wonderful lady for over 30 years and has three kids- two sons, both of whom are attorneys and one daughter on her way into the field of education. DrJohn was brought up with the concept that one can do well if one is prepared to work hard but nothing in life is guaranteed. Except for liberals being foolish.

6 Responses to “Middle and lower class workers see taxes rise so Obama can give Goldman Sachs a tax break”

  1. 2

    Rob in Katy

    I think an amendment that I would go for is that members of Congress and President must have worked Commercial/Retail for 5 years. Some real world experience amy weed out the dolts that go straight from law school to congress.

  2. 3


    of course Obama voters have it all backwards. Romney was the one against corporate welfare and crony capitalism. Romney was the one who wanted tax cuts across the board to help stimulate growth in the economy and help take the burden off the middle-class. Romney was the one who cared about the debt. Obama could care less about the American people and the American ideals this nation was founded upon. he’s not doing anything to help the average person–but continues to give special deals to those who have helped him out. what a joke.

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    @Nan G: That’s funny. I’m sure Mooshell can find something racist about it. The picture reminded me of the first time I ever heard Elvis’s name: 1954, Red River Arsenal, Texarkana, Tx. He was performing at the Civic Auditorium and the screaming kids were spilling out into the streets…..and the Obamas didn’t exist.
    BTW. What happened to likes and dislike icons? Is this the influence from the new progressives schools? “Great job” everyone. Everyone passes. Egads, do I ever hate that expression, “great job” used on children. I want to scream ‘just STFU’.

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