Former Labor Secretary Robert Reich was on Countdown discussing the dirty little secret behind the GOP’s tax cut hypocrisy. If taxes are lowered for the rich, everyone else must pay more.
Here is the video from Current TV:
Reich said, “I think the most important point is that the president is pointing out very very clearly for the entire country to understand the two pieces of hypocrisy here. Number one that the Republicans don’t want to raise taxes on the rich, but that may require and mean that taxes are going to be raised on almost everybody else, but number two that suddenly they are sort of born again oh, you’ve got to pay for tax cuts. Tax cuts don’t pay for themselves when for years they have been saying that tax cuts pay for themselves, and they can’t have it both ways.”
The former Labor Secretary talked about what will happen if the payroll tax cut and unemployment insurance are not extended, “Eighty percent of Americans pay more in payroll taxes than they do in income taxes, so this is a big deal, and a thousand dollars on average per family or worker for that matter is a big deal for most families. The second is the extended unemployment benefits and given how many people are actually still unemployed in this economy, that’s important. It’s puts money in their pockets. They can turn around and buy things, and that creates jobs or at least keeps people in jobs. If the Republicans have their way and neither of these things is extended, neither the payroll tax nor the extended unemployment benefits then it will be a tremendous fiscal drag on the economy.”
Yes, the dirty little secret of the Republican Party is that they recognize the need to raise taxes. Even the GOP knows that their tax free utopia is not possible. After all someone has to pay for those huge defense budgets, and that someone is you and me. Republicans know that taxes will have to be raised on everyone else in order to fund their tax cuts for the wealthy.
They understand that trickle down economics does not work, and they expect every American who isn’t a member of the income elite to pay more so that our country can afford their ideological driven generosity to the rich. How else can the GOP conversion from the mantra of tax cuts pay for themselves to the payroll tax cut must be paid for be explained?
The truth is that the Republican Party is engaged in a massive wealth redistribution plan. Their plan is to concentrate America’s national wealth at the top, and expand the economic inequality already present at historic levels in our current system. The GOP is out to fundamentally transform America into a rigid class structure where poverty will be inescapable for many, and advancement up the economic ladder will be a myth.
Republicans don’t hate all tax cuts, just those that will require the rich to pay more.