Analysis: House Democrats Oppose Obama Tax Deal

by Adaoma
December,10 2010

"This seeming contradiction - falling sales and rising profits - is one reason the mood on Wall Street is so much more buoyant than in households, where pessimism runs deep and joblessness shows few signs of easing.

Many companies are focusing on cost-cutting to keep profits growing, but the benefits are mostly going to shareholders instead of the broader economy, as management conserves cash rather than bolstering hiring and production. Harley, for example, has announced plans to cut 1,400 to 1,600 more jobs by the end of next year. That is on top of 2,000 job cuts last year - more than a fifth of its work force.

As companies this month report earnings for the second quarter, news of healthy profits has helped the stock market - the Standard & Poor's 500-stock index is up 7 percent for July - but the source of those gains raises deep questions about the sustainability of the growth, as well as the fate of more than 14 million unemployed workers hoping to rejoin the work force as the economy recovers.

Because of high unemployment, management is using its leverage to get more hours out of workers," said Robert C. Pozen, a senior lecturer at Harvard Business School and the former president of Fidelity Investments. "What's worrisome is that American business has gotten used to being a lot leaner, and it could take a while before they start hiring again."
http://www.nytimes.com/2010/07/26/business/economy/26earnings.html?_r=2&adxnnl=1&ref=business&pagewanted=all&adxnnlx=1280235664-V5js5Rj3R8amwAACTQt3ZQ

Profits are directly related to production. Profits are up when production is up. As the article demonstrates, business have laid off workers and made their profits by requiring remaining workers to work faster and work longer. Understanding the realtionship between production and profits makes it clear that allowing tax cut extension to those businesses that make over 250 thousand dollars is as devastating to workers as not extending unemployment benefits. Profits come out of the labor of workers!

This is not the fault of Obama, but the entire Democratic party and the Republican parties who have in bipartisanship enabled capitalist interests, rather than worker's interest. The financial bailouts of banks was used to give bonuses to their CEO's, not increase lending to workers who needed money to end foreclosure and invest in their small business. Businesses that used bailout monies did not create jobs and take millions off unemployment rolls, but increased production with fewer employess to the extent that profits soared higher than they have been in several years.

The Democratic Party has been in partnership with the Republican Party in funding the wars in Iraq, Afghanistan and Pakistan. Bipartisanship supported and funded the troop surge to Afghanistan.

Eisenhower warned of the Military Industrial Complex

Map of Federal Spending



http://www.world-business-peace-network.com/uploads/pics/Fed-budget-2008_01.jpg

The deal that Obama made with Republicans to allow those who make over 250 thousand dollars to keep tax cuts should be rejected, not because it is 'unfair' or because it is 'common sense", but because it exploits the labor of workers.

Although factions of the Democratic Party (Black Caucus, Progressive Caucus, Blue Dogs) are challenging the deal President Obama made with Republicans over the current bill on Bush-era tax cuts, where Democrats stand as a class party and the interest's these members of Congress actually represent are being revealed as capitalist interests.

Worker's interests are clearly not represented by either party. Workers need our own party the defines our own interest. Workers need a labor party.

Adaoma

Senator Bernie Sanders -Independent from Vermont Analysis on rejecting Tax Cuts to Wealthy

http://www.c-span.org/Watch/Media/2010/12/10/HP/R/41779/Sen+Sanders+Held+a+Tax+Cut+Filibuster.aspx

http://www.c-span.org/Watch/Media/2010/12/10/HP/R/41780/FRIDAY+congress+update+and+latest+on+Tax+debate.aspx

http://www.c-span.org/Watch/Media/2010/12/10/HP/R/41739/FRIDAY+congress+update+and+latest+on+Tax+debate.aspx

C-Span interview with Rep. Keith Ellison

Progressive Caucus Co-Chair Rep. Ellison gives the latest on the debate over Pres. Obama's deal with Republicans to extend tax cuts. Rep. Ellison opposes the deal. Pres. Obama agreed with Republicans to a deal that extends the tax cuts through 2010 for all tax brackets. The President also agreed to an estate tax at a maximum rate of 35 percent and an exemption of $5 million. Rep. Henry Cuellar (D-TX) joins the segment over the phone, and explains why he supports the agreement.
Washington, DC
http://www.cspan.org/Watch/Media/2010/12/09/HP/A/41712/Rep+Keith+Ellison+DMN.aspx
http://en.wikipedia.org/wiki/Keith_Ellison_(politician)

Welch and 53 House Democrats oppose Obama tax deal

Thursday, 09 December 2010 09:25

In a significant demonstration of opposition to President Obama's tax deal, Congressman Peter Welch (D-Vt.) and 53 members of the U.S. House came out against the President's proposal Thursday morning.

In a letter sent to Speaker Pelosi Thursday, Welch and his colleagues called the proposal "fiscally irresponsible" and "grossly unfair."

"America is wading into fiscal quicksand. Borrowing nearly a trillion dollars to finance tax cuts that disproportionately favor millionaires and billionaires threatens our ability to create jobs, grow the middle class and protect seniors," Welch said. "Digging the country deeper into debt to pay for misguided tax policy is irresponsible and simply doesn't make sense."

The letter, which Welch authored and first circulated late Monday, was signed by: Reps. Earl Blumenauer, Judy Chu, Yvette Clark, Steve Cohen, John Conyers, Elijah Cummings, Danny Davis, Peter DeFazio, Donna Edwards, Keith Ellison, Anna Eshoo, Sam Farr, Bob Filner, Barney Frank, John Garamendi, Alan Grayson, Raul Grijalva, Luis Gutierrez, Alcee Hastings, Martin Heinrich, Maurice Hinchey, Rush Holt, Jay Inslee, Jesse Jackson, Sheila Jackson-Lee, Paul Kanjorski, Dennis Kucinich, Barbara Lee, John Lewis, Ben Ray Lujan, Steven Lynch, Doris Matsui, Jim McDermott, Mike Michaud, Jim Oberstar, John Olver, Chellie Pingree, David Price, Tim Ryan, Linda Sanchez, Jan Schakowsky, Carol Shea-Porter, Adam Smith, Jackie Speier, Pete Stark, Betty Sutton, Bennie Thompson, Mike Thompson, Paul Tonko, Anthony Weiner, Lynn Woolsey, David Wu and John Yarmuth.
The full text of the letter is copied below:

Dear Madam Speaker,

We oppose acceding to Republican demands to extend the Bush tax cuts to millionaires and billionaires for two reasons.

First, it is fiscally irresponsible. Adding more than $900 billion to our national debt, as this proposal would do, handcuffs our ability to offer a balanced plan to achieve fiscal stability without a punishing effect on our current commitments, including Social Security and Medicare.

Second, it is grossly unfair. This proposal will hurt, not help, the majority of Americans in the middle class and those working hard to get there. Even as Republicans seek to add billions more to our national debt in tax cuts to the wealthy, they oppose extending unemployment benefits to workers and resist COLA increases to seniors.

Without a doubt, the very same people who support this addition to our debt will oppose raising the debt ceiling to pay for it.

We support extending tax cuts in full to 98 percent of American taxpayers, as the President initially proposed. He should not back down. Nor should we.

Sincerely,
PETER WELCH
Member of Congress

http://welch.house.gov/index.php?option=com_content&view=article&id=1268:welch-and-53-house-democrats-oppose-obama-tax-deal&catid=37:2010-press-releases&Itemid=77

House Dem Caucus Votes Down WH-GOP Tax Package

Today 12/09/2010

The House Democratic Caucus today voted against taking up the White House-GOP arranged tax package unless changes are made in bill.

President Obama has been pushing Congress to quickly pass the bill to ensure the nation's economic stability and provide unemployment benefits for an estimated 2 million jobless Americans. Several legislators have balked at the proposal due to its continuation of upper-income tax cuts and its estate tax provision.

Other legislation left for congressional members to complete include the passage of a Continuing Resolution (CR) to fund the federal government in the absence of a permanent budget for FY2011. Last week, Congress passed a temporary CR that is set to expire on December 18.
http://www.cspan.org/

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