Super Rich Tax Cuts - What They Mean

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polycarp2

QUOTE: The Greater Traitor

By ALEXANDER COCKBURN

As an Irish-American, I ask myself, Which of the two is the greater Judas to his nation: the Irish prime minister, Brian Cowen, or the American president, Barack Obama?

Both of them are carrying out the same mission– plunging the bulk of the citizenry of their nations into debt peonage, so that bankers and the rich can prosper.

There’s no need to choose, though in terms of sheer magnitude of the disaster, Obama would carry the prize.  No one has described his sellout on taxes  last week better than  Michael Hudson [world class economist] who turned in an acrid resume of Obama’s “compromise” on this site last Wednesday. The highlights:

“Monday’s deal to re-instate the Bush era tax cuts for two more years sets up a 1-2-3 punch…enabling the Republicans to legislate the cuts in perpetuity in 2012 – an estimated $4 trillion to the rich over time….

 

“To ‘save the dollar’ the Republicans will propose to replace progressive income taxation with a uniform flat tax (the old Steve Forbes plan) falling on wage earners, not on wealth or on finance, insurance or real estate income. A VAT will be added as an excise tax to push up consumer prices.

 

“Third, the tax giveaway includes a $120 billion reduction in Social Security contributions by labor – reducing the FICA wage withholding from 6.2 per cent to 4.2 per cent. Obama has ingeniously designed the plan to dovetail neatly into his Bowles-Simpson commission pressing to reduce Social Security as a step toward its ultimate privatization and subsequent wipeout grab by Wall Street….

 

“The bottom line is that after the prolonged tax giveaway exacerbates the federal budget deficit – along with the balance-of-payments deficit – we can expect the next Republican or Democratic administration to step in and ‘save’ the country from economic emergency by scaling back Social Security while turning its funding over, Pinochet-style, to Wall Street money managers to loot as they did in Chile….

 

“Welcome to debt peonage. This is worse than what was meant by a double-dip recession. It will be with us much longer.”

 

http://www.counterpunch.org/

Retired Monk - "Ideology is a disease"