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Rep. Charles Rangel

Rep. Charles Rangel

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The Disastrous Legacy of the Bush Tax Cuts

Posted: 06/ 7/11 07:00 PM ET

Our nation is currently faced with a $14.3 trillion debt ceiling that must be raised to preserve the full faith in credit of the United States of America. Ten years ago, President George W. Bush signed into law a series of irresponsible tax cuts that has led us into our current fiscal crisis. Combined with our two unfunded wars in Iraq and Afghanistan and a culture of deregulation, the Bush Administration turned President Clinton's $5.6 trillion surplus into record budget deficits and has brought the economy to its knees.

Unfortunately, rather than offering a long-term solution to balance our budget, the Republicans have been ruthlessly intent on extending Bush tax cuts for the wealthiest Americans on the backs of our seniors, the disabled and the poor.

Extending all of the Bush Tax Cuts beyond 2012 would cost $2.4 trillion ($3.9 trillion if coupled with continued patches to the Alternative Minimum Tax). Even allowing the upper income tax cuts to expire, the remaining tax cut extensions could still cost over $1.7 trillion. Big corporations have for too long benefited from tax loopholes while working families across our great nation are barely struggling to get by. Unfortunately, GOP has chosen to gamble America's financial future by refusing to lift the debt ceiling unless they cut drastic funds for those who need it most by slashing Medicare and Medicaid.

The Republican agenda is reckless: It ends the guaranteed health care coverage seniors paid for, and instead puts them at the mercy of private insurance companies. Seniors would see their out-of-pocket costs rise by more than $6,000 and would have to spend more on prescription drug costs. They will also lose benefits, such as free preventive care under Medicare, which went into effect under the Democrats' health care reform.

The GOP plan also calls for drastic Medicaid cuts that would impact over 69.5 million Americans who depend on it. According to the Economic Policy Institute, the proposed $207 billion cut from repealing health care reform along with the additional cuts proposed by the Republicans would result in a loss of 2.1 million jobs over the next five years and potentially leave up to 44 million people across the nation without medical coverage.

It is time to get serious about creating jobs, strengthening the middle class, and providing opportunities for people to contribute to our economic growth. I recently introduced with Congressman Aaron Schock the Work Opportunity Tax Credit Improvements Act of 2011. This bi-partisan bill would extend tax credits to spur employment for high-risk youth and discharged veterans after those provisions were not renewed at the end of 2010. Moreover, several hiring tax incentives -- which include an Indian hiring credit, D.C. hiring incentive, and two credits for Empowerment Zone residents -- would be consolidated and placed under the core WOTC program. I also plan to introduce legislation to reform our corporate tax code, not only to simplify them but to generate corporate revenue by closing massive loopholes.

I have never stopped fighting for the working families in America. Our deficit will not be reduced by ending Medicare and Medicaid. It makes no economic sense; it certainly is not morally justifiable. We must honor the moral obligation that our country has to help the less fortunate among us.

 

Follow Rep. Charles Rangel on Twitter: www.twitter.com/cbrangel

Our nation is currently faced with a $14.3 trillion debt ceiling that must be raised to preserve the full faith in credit of the United States of America. Ten years ago, President George W. Bush signe...
Our nation is currently faced with a $14.3 trillion debt ceiling that must be raised to preserve the full faith in credit of the United States of America. Ten years ago, President George W. Bush signe...
 
 
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meglon978
Beware of gifts bearing Greeks.
05:54 PM on 06/08/2011
Simple solution. Raise tax rated back to where they were when Truman was in office, and eliminate all loopholes. We'd be running a surplus right now most likely.

But then i understand, that was back when people (even conservatives) took responsibility.. and they knew what the word meant.
ByAndForThePeople
and corporations aren't people!
10:51 PM on 06/08/2011
Hell, if the rates were raised only back to where the Republican subdeity Reagan had them, we'd be in much better shape!
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TMS3100
Tea Party has run off with his light saber.
09:46 AM on 06/09/2011
That is not true at all. Totally false.
05:08 PM on 06/08/2011
Funny how old Charlie doesn't mention how much of the deficit increase under Bush happened after the Dems took control of congress.
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scottishboy
Born in the USA!
04:51 PM on 06/08/2011
Charley, maybe you should have paid your.
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meglon978
Beware of gifts bearing Greeks.
05:51 PM on 06/08/2011
He did.
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scottishboy
Born in the USA!
07:07 PM on 06/08/2011
When?
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knott wrench
04:29 PM on 06/08/2011
So Mr. Rangle why is it that the Dems. do not seem to be shouting this from the Roof Tops of the Highest Buildings. This is one time and issue to nail the GOP and their Tea baggers continually
with the FACTs. The Bush cuts deflated our economy and made the Fat Cats fatter. Now the GOPers are "locked-in" to Grover Norquests "No Tax Pledge", which continues to harm the economy and job growth.

What' s the Pay Off for these GOPers to continually vote in lock step? The backlash to come is when everyone finally realizes that giving more tax breaks to the wealthiest 1-2 percent of the US Population won't bring new jobs but only to deflate the economy and the eventual dismantlelng Social Security and Medi Care as we know it and this is just the start. This is another point to take the GOPers on. Where's the bull horn?
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TMS3100
Tea Party has run off with his light saber.
09:48 AM on 06/09/2011
The Tax cuts did not deflate the economy. If you think that is the case, explain why.
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Ranveig Elvebakk
Innovator, author and lecturer on weight and nutri
04:21 PM on 06/08/2011
What about the disastrous results of Reaganomics???
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scottishboy
Born in the USA!
04:52 PM on 06/08/2011
You must be a Keynesian.
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03:04 PM on 06/08/2011
The Disastrous Legacy of the bush 150 dollar a barrel oil....

The Disastrous Legacy of the Bush illegal iraqi war...

The Disastrous Legacy of the Bush 100 billion dollar bonus plan for the execs who robbed their own banks.....

The Disastrous Legacy of the Bush/greenspan ridiculously low interest rates in the face of huge oil induced inflation...

The Disastrous Legacy of Bush spending 8 trillion dollars of china's money....

The Disastrous Legacy of the Bush etc....etc....etc....
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PRR Fan
8 year-olds, dude.....
02:38 PM on 06/08/2011
Congressman Rangel, you just don't get it. First, we're over $14 TRILLION in debt. How in the name of Almighty God does giving ourselves permission to borrow even more help? Second, taxes are a burden on the economy. President Obama and a majority of Democrats recognized that when they extended the Bush tax cuts in the first place. Increasing taxes will slow the economy, drive capital and jobs overseas, lower Federal revenues while leading to calls for even more spending and make an already bad situation much worse. Meanwhile, you might have more credibility on this issue had you not been censured by the House for dodging your own taxes despite being a senior member of the committee that wrote them.
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procrustes13
03:09 PM on 06/08/2011
"How in the name of Almighty God does giving ourselves permission to borrow more even help?" Simple. To not borrow is to destroy the economy, the GDP will crash but that debt shall remain. The deflation shall lead to a cascade of bankruptcies. In short, it helps prevent a catastrophe that shall surely happen if it's not done. Moreover, the debt to GDP ratio right now is less than half of that of Japan. There is no significant problem.
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Badwater
Call any vegetable Call it by name
03:32 PM on 06/08/2011
Taxes were raised during Clinton's first term and the economy boomed. Decider Bush cut taxes and the economy crashed. Who doesn't get it?
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PRR Fan
8 year-olds, dude.....
09:39 AM on 06/09/2011
You think that raising taxes did that? So I guess there was no information revolution and emergence of the internet never happened? The economy boomed in spite of the tax rate increase, not because of them. Had the tax rates not been raised, the economy would've improved even more. And the economy boomed for several years after the Bush tax cuts, it was brought down by a housing market that had been turned into a bubble by a combination of bad monetary policy from the Fed and a bad housing policy of the government that forced banks to make loans to people who couldn't repay them.
02:35 PM on 06/08/2011
They are now the Obama Tax Extensions.
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beckjr2000
been there done that & tired of it
01:34 PM on 06/08/2011
No one knows more about not paying taxes than Charlie Rangel! You would think that as long as he has been in office he would realize that the President doesn't write Tax Law and doesn't control Government spending! What was the name of the committee that he was Chairman of?
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CelticMajic
The answer lies in each of us individually
01:08 PM on 06/08/2011
Mr. Rangel, pretty sure you are one of the "wealthy" you speak of. If this is so egregious did you send in the amount you thought more appropriate to the government, or did you make your point all the way to the bank?
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procrustes13
03:10 PM on 06/08/2011
Government is not a charity with a collection plate nor should it be.
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CelticMajic
The answer lies in each of us individually
04:00 PM on 06/08/2011
If I am not mistaken, he did not send in the amount he owes at current rates, never mind the amount it would be if the rates increase.
01:05 PM on 06/08/2011
Mr Rangel if the tax cuts were re-instated as you suggest it would not generate as much money as you claim. You helped in getting six million people off of the tax rolls. So you are complicit in problems that are occurring here in America. Both parties are complicit in the economic disaster that has occurred. The biggest area of the disaster would be in the housing market where people were allowed to buy a house and not have the funds to even pay the bills. This goes back to Clinton administration in letting everybody get a home loan.

Mr Rangel if you were serious about creating jobs you would have done so by now. First in foremost that should have been your job since day one of your career as a politician. You should be trying to get jobs that were sent overseas back here in America. That should be the goal of every politican from both parties from the President to the newest member of congress.

SSG Rangel as a prior NCO in the Army show the American people why jobs have been going overseas. That will require openig up the tax rolls and all of the regulations that effect all tyes of businesses. This would give people a greater understanding why people do not have jobs or why they lost their job to out sourcing to some cheap thirld world labor force.
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procrustes13
03:11 PM on 06/08/2011
Oh, so now the problem are those people too poor to stay on the tax rolls, squeezing them dry is the answer. These people have a very high Marginal Propensity to Consume and as such tax savings for them have a very excellent multiplier effect through the economy. Taxing such people would slow down the economy.
12:56 PM on 06/08/2011
America needs people to pay the taxes they owe. Like you geithner and many other of your friends that did not fire any of you for not paying yours. You trying to tell anyone about america tax problem is a joke. You are americas tax problem and people like you.
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12:55 PM on 06/08/2011
Republicans do not believe in "moral obligation".
12:50 PM on 06/08/2011
Easy to say by some one who does not pay what he owes. Thief!!
12:46 PM on 06/08/2011
So your solution to the budget problems is to merely raise taxes Rep. Rangel? We spend 1.65 trillion dollars per year more than we take in, even eliminating all the tax cuts will not make up for that revenue. How about being honest and admiting there is a real problem with both SS and Medicare. Somehow you seem to think only government can make important decisions and that somehow people are capable of making these decisions for themselves. The fact is government needs to do less and TAKE LESS FROM TAXPAYERS.
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procrustes13
03:13 PM on 06/08/2011
The real problem is unemployment. The high unemployment means less taxes taken in and more benefits paid out. That's the main cause of the imbalance. Attacking social security and Medicare will only serve to keep unemployment high.
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plumnelly
03:48 PM on 06/08/2011
The more the rich don't pay their fair share, more taxes will be put on the middle class. The rich can afford private schools and gated communities and healthcare, they're not hurting one damn bit. So don't give me these feel sorry for the super rich and let's not raise their taxes. They usually dont' even serve in our wars all they do is jet around and ship jobs overseas. Wake up! You must be rich!