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Senate Democrats: Income Inequality Will Drive Politics Of 2012, Hurt Republicans

Posted: 11/28/2011 11:22 am

WASHINGTON -- Next year's election will not look like last year's Republican romp largely because America has woken up to the historic gap between rich and poor, Democrats argue in a new polling memo ahead of this week's push to retain a middle-class tax break.

The memo, written by pollster Geoff Garin for Democratic policymaker Sen. Chuck Schumer (N.Y.), argues that while the 2010 election was a referendum dominated by anti-tax Tea Party rage against Democratic leadership, the 2012 election will be different because Republicans now share control of the federal government and their policies are increasingly seen as favoring the rich.

With the Occupy Wall Street movement highlighting income inequality that has not been this high since the roaring '20s, the side of the rich will not be a good place to be in 2012, the memo argues.

"The Republican/Tea Party narrative about the economy has been superseded by a different narrative -- one that emphasizes the need to address the growing gap between those at the very top of the economic ladder and the rest of the country," Garin wrote.

One way Democrats think they can address that gap is to maintain a payroll tax cut that reduces the Social Security levy, leaving workers with $1,000 extra in their pockets -- or more at the higher end of the pay scale. Social Security tax is only paid on the first $106,000 of income, ensuring that the benefits of the tax cut go mainly to the middle class.

At least one Republican leader, Sen. Jon Kyl (Ariz.), has signaled he will oppose extending the tax cut, although he and most other Republicans favor extending the Bush-era tax cuts for the wealthy.

Democrats think that kind of stance from the GOP will boost the Democrats in 2012. Indeed, the Occupy movement already sees as a victory the death of Congress' super committee, which, if it had succeeded, likely would have increased the burden on the middle class.

For evidence, Garin's memo points to a recent NBC/Wall Street Journal poll that said, while 33 percent of the nation still strongly agrees that the debt and government must be cut and no taxes should be raised, a full 60 percent strongly agree that the current economic structure is out of whack in favor of the rich and that the government should restrain big banks and cut breaks for the wealthy. That includes 62 percent of independents, who are so key in electoral politics.

The Democratic memo also notes an ABC News/Washington Post poll that found 60 percent of Americans want the government to take steps to shrink the gap between rich and poor, versus 35 percent who do not.

"From the perspective of policy, there is a huge gap between what the public wants the government to do and the positions of the Republican Party on those issues," the Garin memo says.

While the data were toted up in a push to extend the payroll tax cut, the survey results are likely to be relevant in several other matters facing Congress over the next three weeks, including dealing with the alternative minimum tax -- which will hit middle-class Americans if a temporary fix is not extended -- and finding a way to extend emergency unemployment benefits again.

Read the full memo here.

Michael McAuliff covers politics and Congress for The Huffington Post. Talk to him on Facebook.

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03:18 PM on 12/07/2011
Love the Huff and this article! I'm also working on my own blog, imdatingaonepercenter.com, in hopes of bringing exposure to OWS and news like this!
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eaarth2
“An era ends when its illusions are exhausted
07:39 AM on 12/04/2011
The republican 1920s Coolidge 'The Business of America is Business' and Hoovers 1928 pledge of a 'Land fill with Prosperity' and a 'chicken in every pot' and '2 cars in every garage' has been the prevailing philosophy again since 1980. We had a IT Meltdown in 2000, and a financial bubble that began bursting in 2007 -both predicated on 'Laissez Faire' economics.

The implosions of 2000 and 2008 where softened by the reforms made in the 1930s- its a wonder where we would have ended up without them. Yet the far right has been very successful at selling a bill of goods to the public- so good in fact that is why we have such economic disparity today.

The public is waking up to the fact they have been duped by the GOP- but its an economic philosophy followed by every US President since 1980- inc Clinton and Obama.
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h111aryc1inton
Just trying to tell the truth
09:51 AM on 12/01/2011
Class Warfare is the plan for 2012 - thanks for letting us know Dems...now go deny that is your plan.
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Dennydorite
To Serve Man--A Cookbook
07:43 AM on 11/30/2011
FINALLY, America is having this discussion. When I first heard the word "billionaire" used years ago to describe one single person's wealth I thought it was an obscenity. Especially in light of how the vast majority live on this planet. Excessive wealth distorts democracy and spoils most things. A sweet, beautiful Caribbean island I used to backpack to is now dominated by ugly high rise condos because some people had to park their excessive wealth somewhere and pampered tourists just couldn't stand to park their big butts in the family run hotels. You don't have to be a socialist to see the damage money worship--the true American religion--has done to the country.
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RUKidding0
Freedom is Fundamental
12:14 PM on 11/30/2011
... and yet, the damage caused by government's lust for OTHER PEOPLE'S MONEY apparently escapes your ken entirely.

Drink deep the Perian Spring ....
RealistBC
Micro-bios must pass muster.
12:27 AM on 11/30/2011
I wish the Democrats had an issue to run on. They will not be able to adequately explain why they allowed the GOP to run things while they had to power to prevent it. Look up Senator Harkin's proposed changes to the filibuster and tell me they aren't reasonable. This rule change alone would have prevented the current stalemate while still allowing time for an opponent of a provision to make the case that it's the wrong decision. THEN maybe the Democrats would have something to run on besides forcing every adult in America to bolster the health insurance industry bottom line.
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jim dorino
let's keep the middle class alive
10:26 PM on 11/29/2011
The main issue next year for me is what party will better represent the interests of the middle class of this country. I work for Verizon which is a highly profitable company. The top 4 executives made over 250 million dollars over the past 4 years.Through loopholes they paid no federal income taxes for the past 3 years and somehow even got a tax refund. They also took 1.5 billion dollars in bailout money from you and me. How do they repay this country's kindness and their workers hardwork? By trying to kill the pensions and healthcare plans of their union workers and more importantly by sending lots of American jobs to India. I don't see any politician from either party calling them out for this behavior.The stink of corruption and cronyism is overwhelming!
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h111aryc1inton
Just trying to tell the truth
09:45 AM on 12/01/2011
Jim - you describe yourself as Middle Class and that you work for Verizon.

Here is my question, did you become middle class because of working for companies like Verizon or because you set out on your own - started a business, borrowed money from family and friends and then worked 80+ hours a week to make sure your family and friends got their money back.

Or did you perhaps - pay your way through college - then Law school or grad school and get a degree in Business and again work 80+ hours a week earning the confidence of those above you so that you could be promoted, often at risk to your marriage and family because of all the hours you worked?

Or perhaps you took your savings every week, making sure that you and your family did without sometimes so that you could save enough money to invest in strong companies and buy their stock (let's say Verizon) and because the company did what they could to raise the value of you stock you did well, bought a house, sent your kids to college ect.

My question is Jim, why begrudge what your boss makes, worry about if you are making enough money. Correct me if I am wrong that strike a few months back when unemployment was around 9% was about contributing to your health care...wasn't it?
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jim dorino
let's keep the middle class alive
08:29 PM on 12/01/2011
h111,

The strike was not about one issue. It was about a hundred different givebacks that the company was demanding including healthcare, jobs being sent overseas, killing our pensions, taking back four holidays, ending doubletime, etc.... and these issues are still not resolved --- but of course you will never get this story from the mainstream media because they know where their bread is buttered and they're afraid of losing ad revenue if they tell the public all the things that a profitable company wants to strip from the employees.As far as begrudging the CEO, when you've got A CEO making 16-20 million$$ a year and then trying to take back 20k worth of benefits from an average employee then your'e damn right it's time to speak up about it. The CEO would send half the jobs to India to make the stock price go up 5 cents and there is something very wrong with that.There is also something very wrong with politicians who have nothing to say about it.
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l78lancer
Wisdom is the principal thing
09:57 PM on 11/29/2011
"The Democratic memo also notes an ABC News/Washington Post poll that found 60 percent of Americans want the government to take steps to shrink the gap between rich and poor, versus 35 percent who do not."
------------------------------------------------------>

While it's fine that the democrats recognize the implications of the poll, if the only thing they the see is the potential political win as opposed to the demands for change then the have missed the point even before the election.

People want the democrats to get something done, not just to win.
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h111aryc1inton
Just trying to tell the truth
09:49 AM on 12/01/2011
Poll shows 60% of Americans want more stuff off the backs of those who have more than them...glad the LIBS understand what made America great.

Just glad they are trying to tell us it isn't class warfare.
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Nigel Patel
People who are against government, govern badly
09:19 PM on 11/29/2011
The irony being, Republican policy is what created this income inequality in the first place.
Only fitting that it would come back to bite them.
08:17 PM on 11/29/2011
Those who fail to perceive increasing income inequality as a significant concern fail to understand that the concentration of wealth leads to inequality in other areas of political and economic life as well and can eventually lead to social unrest and structural destabilization. In other words, it's a very serious issue and deserves serious discussion.
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h111aryc1inton
Just trying to tell the truth
09:50 AM on 12/01/2011
The problem is you never get a serious discussion when Senator Schumer is in the room.
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Hugebrass
Defend the Constitution from "Progressive" Change
02:59 PM on 11/29/2011
This tactic will be destroyed by the simple fact that he Wall Street  protesters, in their hatred of capitalism, overlook things including the  fact that over the last 100 years capitalism has reduced poverty more and increased life expectancy more than in the 100,000 years prior.

http://politicalarena.org/2011/11/27/professor-gary-wolfram-occupy-college-students-blind-to-benefits-of-capitalism/
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themuse
03:33 PM on 11/29/2011
This professor is missing several key points and overlooks the fact that the highest standards of living are in heavily socialized countries. He conflates authoritarian regimes with socialism, which is a bogus argument because true socialism (not to be confused with authoritarian communism, is inherently democratic, whereas the structure of capitalism breeds authoritarianism. Also,just because it worked in the past does not mean that it is the best economic model for the present. In fact, what the protesters are protesting is that market Wall Street has become an anarchic grab for global assets that are hoarded for its own sake.
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l78lancer
Wisdom is the principal thing
09:59 PM on 11/29/2011
Well stated.
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hamp70
02:40 PM on 11/29/2011
I see the biggest problem causing the inequities in the world is thievery. (another word exploitation) The sad part is that it is not always illegal. The S&P bond ratings are an example. It is like accepted as something that nothing can be done about. If the thievery gets too in our faces, we make a new law against it, that no one has any intention of enforcing. It looks to me like the biggest thieves are the ones yelling the loudest to stop all regulation. This stealing is probably the biggest source of all government programs not working. This is what causes everyone to be against any social programs no matter how well intended they might be. This thievery is at every level of society. Many of the poor probably think they need to do it to survive. The rich are doing it to get richer. Most see it as a reality that nothing can be done to stop. I guess that is why so little is said about it directly. The money that it would take to enforce our rules and regulation would be astronomical. The ones doing a lot of the stealing are our politicians. They are the ones that would need to allocate the money to fight against the stealing. Our we doing an injustice to our children when we teach them to be honest? It almost looks that way sometimes. Sad! Sorry, I see the problem but do not see the answer.
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l78lancer
Wisdom is the principal thing
10:29 PM on 11/29/2011
In some ways I agree. Exploitation and thievery committed by free-range capitalist has many faces and facets. You have touched on only one dimension. These same companies - since many are multinationals - exploit resources and people in regions around the world to garner maximum profit, pay less than subsistence wages and avoit taxes. Residents in these foreign countries can't afford to buy the products they make, however, the companies ship these products to other countries including the United States to soak the rest of the money out of the pockets of many of the same people they just laid off.

So while capitalism has numerous benefits, it has some dark sides, too. Ultimately the ethics of an organization are enforced from the top down, so it starts with its execuives. Because the only priority of the organization is to make profit to perpetuate its existence, the ethics of corporations will probalby not change. Ultimately they will either collapse under their own weight or smaller organizations will supercede them, theoretically. So as long as there are corporations and corporate competition there will be theivery and exploitation. Regulations may arrest it to a degree. The people who patronize the organizations fueling their profits are the only force that can correct it.
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hamp70
02:46 PM on 11/30/2011
Great input! I was thinking that this line of thought needs a lot more attention. You just address a lot of what needed to be said. Like you pointed out, there are many other dimensions to this and they need to be brought out. I am going to start donating more of my time toward this. It is something that most people can agree on. We have not been divided yet by the media on this issue. It is hard to ague in favor of exploitation and thievery. Although in some ways this country would not be nearly as well off without it. I guess that could be said of anyone stealing and getting away with it. Anyway, thank you for the input, and I will be looking at your comments.
01:51 PM on 11/29/2011
A tax cut my butt, your taking more from the upper incomes and giving it to the so called middle class, LOL Why dont you just take it all from those who worked hard to achieve success and spread it out then Im sure Obama will be happy.

Why dont the rich also pay for everyone’s collage and put down payments on houses for those who dont have any money.

We might also ask the rich to buy a car for everyone.
DanBest
My micro bio is empty
02:35 PM on 11/29/2011
It would help if you would dial back your histrionic screed in defense of your social betters. They don't need your support. They can pay people who actually know how to spell to repeat the same talking points over and over and over and over and over ...
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Nigel Patel
People who are against government, govern badly
09:21 PM on 11/29/2011
Maybe he's hoping they're buy him a car for defending their privilege.
01:05 PM on 11/29/2011
Democrats are Coward.s, Republican­s are Dum.b, Obama is reactive instead of being proactive, this country is basically Messed up!!. LET ALL THE OBAMA/BUSH TAX CUTS EXPIRE, No more Tax Cuts for Anyone, what the Dems are proposing is called bait n switch, cut taxes here while raising Taxes over there, its deceitful. How about this: NO TAX CUTS FOR ANYONE,LET ALL THE OBAMA/BUSH TAX CUTS EXPIRE PERIOD, AND NO MESSING WITH SS PERIOD!!.
11:09 AM on 11/29/2011
Our government is constipated ... one party gets power ... Americans become impatient when they don't see immediate change ... vote the other party in before the few inches that were gained have a chance to take effect ... the pendulum starts swinging the other way and "s.h. it. DOESN'T happen" ... business as usual ... and the one thing I think we can ALL agree on is that the status quo is unsatisfactory (although I do suspect that the richest 1% like it this way). What we need is a MODERATE government that leaves unsolvable, divisive, emotional issues such as abortion, gun control and gay marriage (which is really only a distraction ... it's really about getting benefits for loved ones ... why did we need to turn it into a "sanctity of marriage" thing?) to the states. We need govt to do a major house cleaning that makes long term policy changes, for example ... capping the size of business ... and THEN downsize itself. In the end, federal govt should address military and foreign affairs, moderating state conflicts, a universal health care system and environmental issues. Religion has no business in govt and should not even be a question in the race for president. Business has no business in govt either. THere's so much more to say .... .... ....
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10:29 AM on 11/29/2011
Anything to avoid running on their records it seems. The Democrats have been in charge of the majority of government since 2007, and held power of both the legislation and presidency for two years, and still hold the majority of power now. The economy stinks, they own it, and so watch them dodge.
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Izzy66
Agree to Disagree
11:03 AM on 11/29/2011
The Democrats did NOT have a filibuster majority, and the Republicans kept threatening.
Republicans had Congressional majority for 14 years.
Democrats have had 4 (Republicans are majority in House now since Jan 2010)
Bush had 8 years
Obama has had 3.
Yet you insist the Federal Government operates like a Porche and turns on a dime. It doesn't, its more like the Titanic, it takes YEARS for legislative policy to permeate the entire strata of our Financial and Societal concerns.
The GOP is more concerned with Gay Marriage, Women's Wombs and Immigrants, rather than focusing on the JOBS they campaigned on in 2009.
FloridaGuy50
Making sure that Obama Is a one term president
04:51 PM on 11/29/2011
Yeah what did Obama do when he had full majority In his first 2 years In office? He did nothing to create jobs In this country but he passed two job killing policies In Obamacare and Dodd/Frank Let's get real here Lady?
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Nigel Patel
People who are against government, govern badly
09:23 PM on 11/29/2011
Our problems that don't come directly from the severity of the crash come from continuing Republican obstructionism. They are deliberately sabotaging the economy for political gain. I hope it blows up in their faces next November.