Granddaddy of tax gazetteers, David Cay Johnston, is poking at Grover Norquist again, this time over the quagmire that the Republicans find themselves in over President Obama’s payroll tax cut proposal. The very proposal that could make Obama the biggest Grinch of 2011. Ruined holidays aside, DCJ points out that if the Republicans shoot this down, they do so at the behest of what seems to be a very popular idea:
[N]umerous opinion polls show overwhelming public support for continuing tax cuts for workers and for raising taxes on millionaires. That has left Republican leaders no choice but to silently cry uncle and agree to the president’s request to extend and possibly expand the payroll tax cut.
The reason that Republicans aren’t so hot on the payroll tax cut is that it’s “temporary.” They’d rather see “permanent” tax cuts enacted, although those “permanent” tax cuts are never “permanent.” The “permanent” Bush tax cuts, for example, had to be “extended” last year because they were about to “expire” which basically makes them “temporary.” The payroll tax cut was originally enacted last year with the Bush tax cuts but as Paul Ryan says, it’s supposed to be like a holiday, which is to say, “We lived through it and we’ll just move on with our lives and never to speak of it again.” DCJ writes that this means Obama has beat the Republicans at their own game:
Having outsmarted Norquist, Obama gets to run for a second term as the champion of at least a $100 billion tax cut. Obama can even say that if Republicans had had their way, working people’s taxes would have gone up while taxes on billionaires would have gone down. And he gets to tell small business owners that, but for Republicans, their taxes would have gone down too.
This is a marketing fiasco for Republicans to rival the Ford Edsel and New Coke. Already more than 40 congressional Republicans have taken steps to distance themselves from Norquist, who scowls at the mere mention of what could have been his, but is now Obama’s, very popular tax cut.
In other words: Whose shorties are snagged now?
Republicans paint themselves into a tax-cut corner [DCJ/Reuters]
Yesterday we called attention to the 60 Minutes interview of tax hatchetman Grover Norquist. Norquist haters nationwide were no doubt gritting their teeth while GGN yukked it up with Steve Kroft and spread the gospel of the Taxpayer Protection Pledge (aka “THE PLEDGE”). This may have inspired today’s column by the Godfather of Tax Journalists, David Cay Johnston. It explains first, how the utter failure of the Congressional Supercommittee actually will result in tax increases:
[B]arring a mad scramble to pass new laws in the next six weeks, workers will pay around $110 billion more in payroll taxes next year and they will not get a $55 billion tax cut proposed two months ago by President Barack Obama. Absent another last-minute fix, more than 22 million families will be required to pay higher income taxes due to the Alternative Minimum Tax, some only because a parent or child has cancer or some other costly medical need.
DCJ is of the opinion that these tax increases would violate THE PLEDGE and thus, should put every signer of THE PLEDGE directly in the tax assassin’s crosshairs. In short, THE PLEDGE is bullshit, says DCJ and its signers should really thinking about another pledge they took and act accordingly:
Pledge signers cannot serve two masters, Norquist and the Constitution. Politicians who do not renounce their pledge of allegiance to Norquist do not deserve to hold office as it prevents them from doing whatever is in the country’s best interests.
You have a choice to make, GOP lawmakers. This plea comes from another bearded man, so it should be taken just as serious.
GOP inaction means higher taxes [DCJ/Reuters]