OK, just to be clear, nobody is getting a tax cut under the proposed Obama compromise. Everyone would be paying the rate they've been paying for the last 10 years. you probably already know that.
Point B: If the old rates were allowed to expire, the top tax bracket rate would increase from 35% to 39.6%. That's 11.6% more tax at the bottom line. So when Alan Grayson claims that Rush Limbaugh would get 2.7 million dollars more if the present tax rates are extended, it follows that Rush is already paying 23.3 million dollars in tax. Maybe Grayson should consider saying thank you for the taxes Limbaugh already pays.
Point #3: The bottom tax bracket rate goes from 10% to 15% if the current rates are not continued. That's a huge difference.
Point Last: Hard economic times are not the time to raise tax rates on anybody. You want to stimulate growth, not stifle it.
Point OK this one is really the last: Why not bring money into the country for a change:
During last year's "Jobs Summit," President Obama said he was open to any good idea to get the economy moving again. Today he should be especially so, since Washington's many monetary and fiscal policy decisions have not been able to spur the robust growth or job expansion that we all would like. And yet there is a simple idea—the trillion-dollar elephant in the room—that has apparently been dismissed for no good reason.
One trillion dollars is roughly the amount of earnings that American companies have in their foreign operations—and that they could repatriate to the United States. That money, in turn, could be invested in U.S. jobs, capital assets, research and development, and more.
But for U.S companies such repatriation of earnings carries a significant penalty: a federal tax of up to 35%. This means that U.S. companies can, without significant consequence, use their foreign earnings to invest in any country in the world—except here.
The U.S. government's treatment of repatriated foreign earnings stands in marked contrast to the tax practices of almost every major developed economy, including Germany, Japan, the United Kingdom, France, Spain, Italy, Russia, Australia and Canada, to name a few. Companies headquartered in any of these countries can repatriate foreign earnings to their home countries at a tax rate of 0%-2%. That's because those countries realize that choking off foreign capital from their economies is decidedly against their national interests.
Why won't we follow the lead of every other big industrialized country? Because the Democrats would call it a gift to big business. Democrats. Listen up. Foreign profits are a good thing to bring back to this country. They've already been taxed in the country where they were made. Let them build a factory or two here.