Making Matters Worse

Protester at Madison, WI Tea Party in April 2009.

Image via Wikipedia

The Tea Party has the fascinating habit of doing things that have the opposite effect of what they claim to care about. They say they are defenders of the little guy, but their policies consistently favor the rich over the poor.

Now they are boldly threatening to refuse to raise the debt ceiling. To their minds this probably sounds like a good way to force those undisciplined government workers to hold down costs. In fact what they have managed to do is to convince ratings agencies to downgrade the quality of U.S. debt instruments. What does this mean in real-world terms? It means that the U.S. will have to pay higher interest rates. It means that government spending will go up, and consequently the U.S. deficit will get worse.

That is fine for the puppet masters behind the Tea Party. They love for the debt to get worse because it is their most effective excuse to eliminate more programs that help the poor so that they can lower taxes for the rich.  They will also certainly mis-direct the blame for this rate increase; they will use it as an opportunity to demagogue about how government spending is causing inflation.

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Comments

  • marriagecoach1  On April 18, 2011 at 9:35 pm

    You can’t blame the Tea Partiers for the downgrade in our credit rating. Obama and the libs did that all by themselves by qaudrupling the federal deficit in two short years.

    We don’t favor the rich, we beleive in eqaulity. The rich are already paying 70% of all taxes while 50% of all households don’t pay any taxes.

    I can give you the history of dems trying to stick it to the rich that has blown up in their faces, has failed every time and only succeeds in hurting the little guy.

    John Wilder

  • jwhester  On April 18, 2011 at 9:55 pm

    We disagree. I think I can blame the Tea Party because this downgrade is based on the very real threat that the U.S. will default on its debt. That will only happen if Congress doesn’t raise the debt ceiling. The only people encouraging Congress not to do that are Tea Partiers.

    Every policy decision favored by the Tea Party benefits the wealthy at the expense of the common folk. Take for example the latest example: Ryan’s budget plan. He wants to reduce taxes for the wealthy and corporations while taking regular people’s Medicare dollars and giving them to Financial Institutions.

    Many of those 50% who don’t pay taxes are wealthy. A new study came out this week showing on average, the wealthiest Americans pay only 17 percent of their income in taxes, a dramatic decline from the 26 percent they paid in 1992.

  • marriagecoach1  On April 18, 2011 at 11:24 pm

    Actaully it is the lower income people who don’t pay any taxes. I don’t know where you got that they only pay 17% of their income, but I don’t believe it.

    I believe in a flat tax where everyone pays the same percentage and that we all get rights and priviliges and we should all pay taxes. It is unfair and unamerican to punish the rich with higher tax rates. When Reagan dropped the tax rates they got more revenue in. When Bush dropped the tax rates we got more revenue in. The reason is that the business owners hired more people who them payed taxes off the unemployment roles. Also more people took risks with their money and invested in businesses and became well off and paid more taxes.

    We need to reduce spending. Obama has quadrupled the federal deficit in a little over two years and wants to increase our deficit even more. It is for that reason that our credit rating was downgraded. If Obama gives in to spending cuts then the Tea Partiers will vote to increase the debt ceiling. If the spending continues uncontrolled it will be a short time before we are in the same boat as Europe who is in desperate financial straits.

    Let me give you a couple of examples of how raising the rates on the rich blow up in your face and hurt the little guy.

    Back in the eighties the libs passed a 10% luxury surcharge tax assuring us that we need to stick it to the rich. It virtually killed the profitable yacht building industry in our country. The rich wanting to buy a 5 million dollar yacht were not willing to pay a 1/2 million dollar tax on that yacht and looked overseas. Not only could they save the $500,000 tax but could buy the same yacht for 3.5 million. The ones who got hurt were the little guys, the blue collar workers who had high paying jobs building those yachts. They lost their houses as well as their jobs but by god they stuck it to the rich. The tax was quietly killed for the utter and complete failure that it was.

    Another example, I lived in Minnesota also populated by libs who decided that they needed to stick it to the rich landlords.l So they passed a 300% increase in their property tax on rental properties. The landlords had no choice but to raise the rent on the renter, the guy who could least afford to pay the tax. The landlords also sold off a lot of their rental houses which of course reduced the supply which caused the rents to go up (classic supply and demand). but By god they stuck it to the rich. This tax was also quietly kiilled a while later for the complete failure that it was.

    It blows up in our faces every time that they do it and the little guy gets hurt. Why do you think that the British pop bands came to this country? To escape the bad taxes in England, so they repatriated to this county.
    ]
    You need to understand this or you are doomed to repeat it and it will be the little guy who will be hurt again.

    John wilder

  • jwhester  On April 19, 2011 at 12:35 am

    Classic Tea Party sort of response: “I don’t know where you got that they only pay 17% of their income, but I don’t believe it.”

    When facts become inconvenient, just deny them and continue to cling to the few exception cases that are the bread and butter of your world view.

    Where did I get my data?

    A quick Google search yields many sources:

    http://www.myfoxphilly.com/dpp/money/Changing_Middle_Class_041811

    http://www.dailyamerican.com/opinion/editorials/da-ot-working-the-system-20110418,0,3427571.story

    http://www.dailykos.com/story/2011/04/18/967905/-Wealthiest-Americans-paying-17-percent-effective-income-tax-rate,-down-9-points-since-1992-

    http://www.minnpost.com/ericblack/2011/04/17/27543/happy_tax_day_richest_people

    http://www.guardian.co.uk/commentisfree/cifamerica/poll/2011/apr/18/taxandspending-taxavoidance

    http://www.ksl.com/?nid=895&sid=15196089

    http://legal-sleaze.com/blog/2011/04/18/wealthiest-americans-paying-17-percent-effective-income-tax-rate-down-9-points-since-1992/

    I will allow you to have the last word, as I grow weary debating this with you since clearly neither one of us is likely to be convinced by the other.

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