Associated Press
Iowa Gov. Terry Branstad speaks with Virginia Gov. Bob McDonnell at the 2012 RGA Annual Conference yesterday.
Earlier this week, Bill Kristol, a leading voice in Republican media, raised a few eyebrows when he urged his party to "take Obama's offer" and allow higher rates on income above $250,000. Kristol asked, "Really? The Republican Party is going to fall on its sword to defend a bunch of millionaires?"
Oddly enough, Republican governors are also reading from a different script than their congressional brethren.
"The people have spoken, I think we're going to have to be [flexible] now," said Virginia Gov. Bob McDonnell, when asked if his party would now have to be open to taxes on the highest earners. "Elections do have consequences. The president campaigned on that."
McDonnell, the outgoing head of the Republican Governors Association, made clear that raising taxes isn't his first choice. But he said that the political reality of a Democratic president and Democratic Senate makes it unlikely that a grand bargain can be struck without some compromise on raising revenues.
Remember, Bob "Ultrasound" McDonnell isn't exactly a moderate voice in his party. On the contrary, he's an ambitious conservative and graduate of Pat Robertson's right-wing college. And even he concedes asking the wealthy to return to Clinton-era rates "absolutely has got to be discussed." Indeed, the Virginian added, "Clearly, overwhelmingly people in America believe that raising rates on people that are in the upper income is part of the mix ... and I think the reality is something like that is going to be part of a final deal."
Former Mississippi Gov. Haley Barbour, a former RNC chairman and influential Republican voice, also said he opposes increasing the top rate, but as part of negotiations on a larger deal, he would also soften his opposition to letting the Bush tax cuts on the wealthiest expire. Idaho Gov. Butch Otter (R) also said he'd "be willing to make that accommodation" in exchange for Democratic concessions.
Others, including Iowa's Terry Branstad and New Jersey's Chris Christie, were more circumspect, but even they didn't rule out the possibility.
What I found striking is that none of the GOP governors Politico talked to urged congressional Republicans "to fight to political death on the issue." Some were more flexible than others, but the line from John Boehner and Mitch McConnell -- no tax increases on anyone at any time by any amount for any reason -- wasn't echoed by these state chief executives at all.
President Obama's talks with congressional leaders started just a few minutes ago. Whether the Republicans in the room realize it or not, their refusal to compromise on taxes has left them increasingly isolated -- from mainstream opinion and leading officials in their own party.
Leave a Comment:
News flash- there will be more taxes on everyone. Only left wing innuendo suggests there are enough rich that increasing taxes on them would be something more than symbolism.
It is a trillion dollars over 10 yrs that does not have to be cut from programs that help a much larger percentage of America.
You've GOT to be among the rich, to make this statement. Does it feel good to look down on others?
Nomore...I believe that the figure is MUCH less than what you are stating. Can you provide a link to your source that this is an extra $100 Billion per year?
just saying...
Another tool spewing BS. How does it feel to be in the minority?
Stormguy53. I got it from Steve Benen post on Nov.14, 2012 835am "Learning to Negotiate"
@ 1.2, : You've GOT to be among the rich, to make this statement. Does it feel good to look down on others?
Not really.
The Rich have plenty of Stooges. Poor Dumb Saps who do the fighting for the wealthy.
It's understandable for people with money to fight to keep their money, their just looking out for themselves.
It's the poor, dumb social climbing bastards who do the wealthys dirty work for free that make me wonder. They have my contempt and sympathy.
@Rob Berman
Yes, the rich have stooges working for them - but now it's time that WE the PEOPLE start working for US. For decades there has been a relaxing of the rules, regulations and taxes for the rich - that have enabled their hubris and arrogance until they now feel indignation at being asked to pay a fairer share of taxes. Really? The nerve! Paying taxes is what you do as a citizen of this nation and as a patriot - the fact that there are those that refuse to want to see this doesn't mean it should not happen. It also doesn't mean that WE as citizens shouldn't remind our "representatives" of how their salaries are also on the public purse and they need to remember that they really are supposed to be working for US!
Not to worry, there will be higher taxes on the rich, and everyone else too. That should make everyone very happy.
Consider that tax hikes on the over $250 crowd will garner $36-$70 billion a year. Tax hikes on everyone will garner $238 billion a year! Think about how much that will help poor people!
On the other hand, we spent a trillion on means tested welfare programs last year, and poverty increased. Perhaps you bleeding hearts should consider that for that amount of money Govt could send each household with a tax return a check for $10,000. maybe even $25,000 if it was means-tested. Or you can keep funding bureaucrats. Take your pick.
http://www.washingtonpost.com/wp-dyn/content/article/2010/08/11/AR2010081105864.html
Liberals might have bleeding hearts, but you goppers have a bloodless brain. That's why you can't come up with anything that doesn't stink.
@ 1.8, Stooger wrote: "Not to worry, there will be higher taxes on the rich, and everyone else too. That should make everyone very happy."
Stooger, your arguments only work on Conservative Talk Radio where the counterpoint isn't allowed.
The Republicans plan is what? Further tax cuts for over $250K and a larger tax burden placed on those below $250k .... The people not doing as well have to carry those who are doing great?
With Obama and the Dems I think the odds of my burden increasing is a coin flip, it may or may not go up.
With the Republican plan I know I would be paying more, probably lots more, all so those with privilege can pay less.
So Stooger, your point is?
?
By the way how can taxes go up on everyone? I thought over half of us don't pay taxes. Get your story straight!
This is not how these programs work, you do understand this, yes?
And, yet again, the article you're linking to Shooter states that the Republican plan will add an additional $31 billion a year to the deficit on top of what our current deficit is, while the Democratic plan would reduce the deficit.
I would say it doesn't support your argument, but then again you just seemed to aimlessly link to the article. I guess your point here being that 31 billion added to the current deficit is better than 70 billion taken away??? Well that's some funny math there conservative. Good to know.
Shooter - how does it feel to b e able to give yourself your own colonoscopy?
Here's what is going to be funny. Obama will see increased revenues this year and will act as if he's got it figured out. In reality, with all of the discussion on eliminating the 15% capital gains rate, there is a lot of selling ( read, taxable events) to lock the gains in and pay the current rate.
@Paul S. Campbell: I think Shooter is referring to the end of the Payroll tax holiday.
Further clarification, If Congress is going to raise taxes, the only fair thing to do is raise everybody's. The 1% already pay an inordinate share of the income tax, it's time for the rest of the country to contribute.
http://www.taxfoundation.org/taxdata/show/27235.html
IT'S about time to open their eyes. It must be hard to walk around with their eves closed, and ear plugs in their ears. I guess they came upon a smelly situation, which made them look, only to find the the smell, came from them, themselves!!!!!!!!!!!!!!!!!!!!!!!
Call me "O one of little faith". We'll see is the best I can come up with. I trust them as far as my 120 lbs. can throw them, and with Chris Christie, well........let's say..........not far.
Wait a minute- the governor of Idaho is named Butch Otter? LOL
LOL, That is funny!
Bet he's a good swimmer.
This talk about the marginal rates on earned income is bull.
The marginal tax rate has little influence on the bulk of Romney's income- The vast majority of the income of the 1% is from capital gains and dividends.
Where is the talk of raising the rate on capital gains from 15% to 20%? That idea dies in the white house because market fundamentalists tell the president that this minute change will cause the job creators to not make shifts in capital needed in a dynamically adjusting healthy economy.
Toss Geithner and his cohorts from the White House and get Krugman or someone else outside of the gravity well of the Chicago school of economics. The President needs much better advice than what he has been getting.
POB is also proposing returning to the 2009 estate tax rates as well as possibly capping deductions and a few other things that are more negotiable.
Regardless of what economists may say, in any moral order the earnings of my active labor should be worth at least as much, and arguably more, than the passive earnings my money makes in investments. But to avoid that fight, the easiest and best thing to do is simply have the government be agnostic and state the obvious: a dollar is a dollar is a dollar, and all income will be treated the same. Wages from labor, compensation for hedge fund managers, capital gains, earned interest, winnings at the casino. . . all the same, all taxed on the same marginal rate table. In terms of political deal making, it has the added benefit of doing what Republicans all claim to want: it simplifies the tax code and broadens the base on which taxes are collected.
Capital gains rates absolutely must go up. It's ridiculous that people with enough money to have their money work for them are taxed at rates much lower than people who actually work for a living. Income is income. I prepare tax returns and I've seen many returns where people with gross income over $100K paid no tax at all because it was capital gains. That's why millionaires were part of the 47% that paid no income tax.
These people aren't job creators - their capital gains are from the secondary (stock) market. Buy stock low and selling it high doesn't create any jobs.
While it's refreshing to see Republican's actually willing to increase tax rates on the wealthy, these Governors will have no influence on the obstructionists in Congress. Boehner acts as if he will only accept Romney's "plan" of tax cuts for all and reduced, unspecified, deductions. I bet he changes his tune in January when Obama calls his bluff.
Meanwhile, I wish there was a mole at the RGA that would uncover the next round of voter suppression and anti-abortion efforts these clowns are undoubtedly cooking up.
NoMoreMagical- I couldn't follow your meaning with the acronym. POB means?
POB Pres.Obama
I like Paul Krugman a lot and respect him. Especially since, like me, he says going over the "cliff" isn't a bad idea.
Hmmm, I must have persuaded him..... LOL.
It's actually more like a Bunji jump than falling off a cliff. You can spring back right away.
Bunji jumping is fun and can clarify things rather quickly, or so I hear.
I have a real problem with the concept of closing loopholes and limiting deductions. Those items will never get done. The special interest groups will be out en masse lobbying Congress to maintain their deductions and subsidies. It is also a vehicle for Republicans to stall actual tax hikes. Let the rates go up and negotiate the other matters in the next Congress so that the Republicans have motivation to do a deal. A short term deal would essentially operate to allow Republicans to stall until the next elections. If the rates go up, then Republicans will have a lot of motivation to negotiate a deal on everything because they no longer have a weapon to obstruct. And if their benefactors rates go up, I am sure the Republicans will be hearing from them long before the next time the Republicans solicit campaign contributions.
Krugman is basically an idiot
They're kidding... right? I mean, are they really going to ask the rich to pay more? Or is this just a stunt? I smell an alternate agenda going on...
It's just incredulous. 3 weeks ago they were fighting tooth and nail in direct and vehement opposition to such things.
5% capital gains tax increase to begin with or no comprimise.
I think there are a couple of different things going on here, and they have very little to do with shellacking.
BEFORE the election, they had to keep their wealthy donors and tea party base happy by saying no-no-no to taxes. They don't have to worry about another election for two years, which, as we know, is an eternity in politics. So they have room to stop looking like fat cat stooges.
The second thing is the hemorrhaging the stock market has suffered over the last couple of weeks, somewhat because of ongoing Europe woes (still or again, take your pick) but mainly because of the post-election stark impending fiscal cliff reality and Boehner posturing. When Wall Street is unhappy, Republicans are unhappy.
Sal, why stop there. Why not make a 50% tax on capital gains? And dividends?
What the President and the Democrats need to do, is say to the Republicans, "You guys all revere Ronald Reagan, right? And you claim he fixed the economic mess he had 'inherited,' right? So, we propose to return to Reagan Era tax rates of roughly about 50%. You loved it when Reagan had to raise taxes 11 times, right?"
Start off at 50%, give the rich bASStacrd something to scream about. And then say that you'll "compromise" on 41% - a HIGHER rate than what Clinton had. And if that still doesn't fly - THEN go back to the Clinton rate.
Instead, President Obama and the Democrats do what they always do - start negotiating from the middle, and work their way back into a "
Grand Screwing" "Grand Bargain," that will not be a bargain for anyone but the rich and powerful, who'll find new loopholes to drive their BMW's and Rolls Royce's through.Capital gains will go back to 20% on January 1, 2013, according to current law. The Senate bill extending tax cuts under $250,000 does not affect that.
So for the capital gains not to go up, there will indeed have to be a more comprehensive bill. I would not be opposed to keeping capital gains at 15%, as long as hedge-fund managers, etc, could not keep claiming what is actually earned income as capital gains. If you do work, and because of that work someone pays you in stock or stock options, that is earned income, not capital.
Mike- wouldn't the capital gains tax increase be an increase on the middle class as well? Plus, an indirect cost to many middle class people depending upon a 401k?
Also, what about the expiring payroll tax cut? You can consider it gone.
Historically Americans do better when annual income over one million dollars was taxed at about 70%. We have depressions when that rate has dropped below 40%..
All food chains build from the bottom up. Economic chains are no different. That's why "trickle down economics" make as much sense as building a skyscraper from the penthouse down.
Tracking? Hang in there.. This last one's a zinger..
Lassiez Faire Economics appear to make sense because they're based on natural law and that's their fatal flaw. There is absolute integrity across a level playing field in nature that will never exist in human interaction rendering Lassiez Faire Economics little more than a justification for financial predation and anarchy...
Yes Rachel, it really is that simple..
Keynes got it right a long time ago. He is still correct.
The GOP, under Bush and supported by the likes of Ryan, put us in this mess. Bush cut taxes based on a surplus he inherited and then started 2 unfunded wars (not to mention Medicare Advantage, also unfunded). It's time for the GOP to pitch in and help pay down the debt they largely created. Our Governor Branstad is also in favor of extending the Wind Energy Subsidy as Wind Energy has become a large, viable employer in the state of Iowa. He knows enough NOT to bite the hand that feeds him. I hope other GOP govs follow his lead.
Since when do governors vote in congress? Its just a poke poll as far as I'm concerned.
Its really a conundrum for the Teapublicans they want to keep their insane base and yet raise tax revenue without getting any backlash from them. Not a peep out of Romney or Trump....yet. Hey Mitt show your TAXES! Thought not chickenhawk still laying eggs.
Far as I know the Bush tax cuts were passed with the understanding the cuts would be funded, which last I heard the cuts were never funded.
So Bush Era has to go.
Rob Berman...............everything Bush did still on the credit card. The tax breaks must expire. Do the Bunji jump off the cliff.
We will bounce right back and the GOP will be sweetly reasonable when they are asked to lower taxes on 98% of their constituents. In fact, it is probably 99.9% of their constituents. They'll do it. Reelection is real important to these folks in Congress.
When I tell my cat to eat his food or go hungry, he can get sweetly reasonable in a hurry. He eats.
Obama says! "Eat those pea's"
I'm just glad everyone must be in agreement on what to cut but because we never hear much discussion on that. If we can just get these taxes higher, then we can address the real problem...spending.
I'm waiting for the gnashing of teeth and rending of garments that cutting the fat out of the DoD is going to cause. It'll make the uproar over the faux "Bengazi-gate" seem like a whisper!
Oh, and I'm a veteran.
A retired, 20-year, pension-receiving veteran.
In talking to many conservatives, I have come to realize that their beef seems to be over "free stuff" and the idea that they worked very hard for what they have and do not like the idea of "handouts" to the "lazy". They are not opposed to taxes so much as to where they believe the money is being spent. Robbing from the rich (or in so many cases, middle and upper middle class) to give to the lazy. This was a very powerful and visceral message rammed home by the GOP.
I did have to laugh when Barbour referred to the GOP reassessment as a "proctology exam". More like a colonoscopy.
Yes, this does seem to be a common thread amongst republicans. I like to point out to them that when they vote in their republican representative and senator, that they have just agreed to "handout" their own hard earned cash to that elected official for the rest of that elected official's lifespan - even when the elected official doesn't serve in the house or senate anymore. You do know, I ask them, that you are handing them money to pay for their salary, their per diem, their healthcare, their housing, their vacations, their security personal, their assistants, their cars, their travels, their investments, their entertainment, their campaigns, their retirement?
Interesting how that piece doesn't seem to register.
"The people have spoken, I think we're going to have to be [flexible] now," said Virginia Gov. Bob McDonnell
"as long as I still get to wand-em.. just a little!"
Love,
-Bob
Somehow that doesn't sound ultra good!