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Sen. Dianne Feinstein

Sen. Dianne Feinstein

Posted: December 3, 2010 01:07 PM

I don't know a single millionaire who needs a tax cut right now. But I know plenty of middle class Americans who desperately need every extra dollar in these tough economic times.

That's why I strongly support the "Middle Class Tax Cuts Act" to give permanent tax relief to the struggling families that need it most. The economic turmoil of the last three years has left many Americans cash-strapped and struggling to stay afloat. And make no mistake, extending the current tax rates for the middle class is crucial to encourage economic growth.

By extending current tax rates for 98 percent of taxpayers, we provide certainty and security for hard-pressed, working-class Americans.

Here's a basic truth: America is in trouble.

And I firmly believe that it's important for those people who can step up to do so. The best way to do that is for the richest to pay the additional 4.6 percent tax. That's not asking much. It's not the wealthiest Americans bearing the brunt of this recession (sales of luxury goods are surging -- the rich seem to be doing pretty well), it's the middle class doing the most suffering.

Evidence does not support extending tax cuts for the wealthy. When the CBO analyzed a number of different job-creation polices, tax cuts for the wealthy came in dead last. In addition, extending the Bush tax cuts for the wealthy would require $700 billion in deficit spending. On one hand, Republicans preach the need for fiscal restraint. At the same time, they call for tax cuts for the rich that will deepen our debt. Something doesn't add up. It would be one thing if the Bush tax cuts for the wealthy had contributed to an era of sustained economic growth and prosperity. But we know that history doesn't back that up.

In 2001, when the first round of Bush tax cuts for the wealthy were proposed, we enjoyed a long-term surplus of $5.6 trillion. Eight years later, President Bush left the country an economic mess. The surplus had devolved to a 10-year budget deficit of $9.3 trillion, and the national debt had increased by more than 80 percent. Need more figures to prove that middle-class Americans need tax cuts more than the rich?

  • From 2003 to 2007, income for families in the top 5 percent of taxpayers increased by 7 percent, while incomes for the other 95 percent of taxpayers' remained stagnant.
  • The average income of the top 1 percent of earners increased by 10 times that of the bottom 90 percent.
  • During the expansion of 2002 to 2007, families saw their median income drop by2,000, the first time ever that Americans have seen their incomes drop during a period of economic growth.
  • During that time, income tax rates for the top 1 percent of earners were reduced by twice as much as rates for everyone else.
  • And in 2007, the top 10 percent took home almost half of the country's total earnings, the highest level of income inequality in our nation's history.

Clearly it's time to extend tax cuts for those Americans who need it. And it's time to end the Bush tax cuts for wealthy Americans.

 
 
 
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12:12 PM on 12/08/2010
As a lifelong Democrat, I will never ever give money to the Democrats again. I will never vote Democrat again. My eyes have been opened.
This was Obama's Waterloo moment - he has made his decision and he's going to lose the war. I am finally ready for a third party candidate and will offer my money, my time and my support elsewhere. We need to save this democracy from oligarchy.
Sorry Sen. Feinstein, but you are part of the problem and lip service doesn't change that fact.
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Patricia013
American made - where the heck are my badges????
03:09 PM on 12/07/2010
Give the rich a tax break and they'll stuff it away. Give the poor and middle class tax breaks and they'll spend it paying their bilss and buying things - which creates new jobs and moves the economy. This is a no brainer to everyone except the republican hard heads who are desperate to pander to their rich friends.
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Skeptical Patriot
02:09 PM on 12/07/2010
Senator Feinstein, what would you do with all the taxes you raise from the wealthy? Would you invest it into new programs to stimulate the economy? No, you haven't proposed anything and in fact know that you can't launch new stimulus. Would you suddenly become a deficit hawk and start cutting expenses. No, that would be counter to the party's view on the deficit commission+if you wanted to, you would be proposing spending cuts right now. So, in fact the only reason to increase taxes on the wealthy is for some misguided sense of retribution or worse just simple politics.
05:38 PM on 12/08/2010
Are you kidding me? Ended the tax cuts will decrease the deficit by more than $700B over the next ten years. That money can and will be budgeted in to pay for unemployment extensions for the innocents who lost their jobs due to no fault of their own, for schools, for jobs creation and for infrastructure. You seem to have forgotten that the Bush Tax Cuts for the wealthy were not in the budgets for last ten years and neither were the two wars Bush got us into. The first stimulus (you know, the one Bush did in 2008 with no strings attached so the banks just took the money and then did nothing to help the taxpayers they were already screwing) was a disaster as was Republican run government knowing that we were in a recession as early as spring 2007 and doing nothing because the election was more important than the American public.

Republicans have consistently screwed the American people with their pants on, without the courtesy of a reach-around, for years. THEY got us into this disaster of an economy and have kept us there is their abuses of the system and false propaganda to get the ignorant to believe the Dems and President Obama caused all this. Do some objective research and you will find that the repubs don't give a lick about you.
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LemonMeringue
Happy Birthday, Steve Jobs - Feb. 24th
04:15 AM on 12/07/2010
Democrats will pay for this, and hard. America understands which party is holding the unemployed hostage. And which one caved to the rich without a decent fight.
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LemonMeringue
Happy Birthday, Steve Jobs - Feb. 24th
04:12 AM on 12/07/2010
This Senator should be rallying every single Democrat to vote against the miserable "compromise".

Let the GOP ruin it for the unemployed. Then let them take the heat for it. They'll come around on that soon enough, or be thrown out on their butts.
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ron ray
mad as heck moderate who won't take it much longer
02:19 PM on 12/07/2010
pretty cavalier attitude about letting the unemployed starve until the 2012 elections.
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Justin Satzman
01:46 AM on 12/07/2010
Please House Democrats, vote no on this deal and Senate Democrats should filibuster this if possible.
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ron ray
mad as heck moderate who won't take it much longer
02:24 PM on 12/07/2010
the majority party doesn't filibuster. and if senate democrats wanted to keep taxes low on the middle class and extend unemployment benfits without a break for the rich...

they'd have put that bill on the president's desk.
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Madbunny
Prison Guard - FireFighter - now a School Teacher
01:20 AM on 12/07/2010
I can only agree.

These tax cuts need to die.

Most importantly, they cannot be allowed to be used as a tool against the American people, the way they were designed to be; hence the 10 year expiration date. As I see it, I'll deal with not having 70.00 a year if that's what it takes to help the economy.

I can only hope that WHEN the White House capitulates to whatever lies the Republicans throw at them that they don't stand for it. If they want all this stuff to pass, they need to vote on it all separately. Let them show that they're willing to do this FIRST and make sure that you get 700 billion dollars worth of concessions out of them FIRST.
12:14 AM on 12/07/2010
Senator Feinstein, you are my Senator, and I would hope, given your stance on this, that you will not be joining Obama in giving in to the Republican hostage-taking. It's disgusting. Please fight. I guarantee that if the Democrats don't back down and allow the tax credits to expire, ESPECIALLY coming from a position where the Republicans are on record as having shot down both bills to extend them for those earning less than $250,000 or $1 Million, that the Republicans will want to compromise. Otherwise, they go on record as having allowed the tax breaks to expire, and they don't want that. I for one, as a middle class American, would rather take the hit now in order to secure a more equitable bargaining table politically in the future. Caving to Republican strong-arming is selling out your base in a deep and unrecoverable way. I for one will be done with my representatives if they fail me on this, and you are one of those representatives.
02:36 AM on 12/07/2010
P.S. If Obama and any of the dems considering making a deal with the republicans think they will be thanked and win any points, think again. These are the typical comments over at the conservative websites in reaction to the news that Obama has agreed to extend the tax cuts for the wealthy:

"Can someone explain to me why giving 13 more months (not weeks) of unemployment to the non working free-loaders is a victory? "

There is NOTHING Obama can do to get the Republicans to like him, so he should just stop trying. They are just laughing at him every time they get him to give them something else. They won't be happy until he's destroyed. They are LAUGHING at your "compromises".
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LibertyRoy
Listen up! I am a Libertarian, not a Republican!
08:39 PM on 12/06/2010
Just a point.... this is NOT a tax cut for the rich. It is a prevention of a tax INCREASE on them. Might seem like a small point, but it needs to be understood. They are not getting a cut, the rates are set to increase.
12:06 AM on 12/07/2010
Yes, it is a tax cut. It is a tax cut that Bush instated, which is expiring now. It would not be expiring if this, as you are implying, were the regular rate and they were now increasing it. If the cuts expired, we would all go back to the NORMAL rates that were in effect before the tax cuts were instated by Bush. It may feel like an increase because for the last ten years you've been getting a break, but technically it is not an increase, regardless of how the Republicans want to spin it. That's like saying if something in a store is on sale for 50% off for 2 weeks, that they are doing a price increase when it is no longer on sale. No. That's the regular price. It's just no longer on sale.
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LibertyRoy
Listen up! I am a Libertarian, not a Republican!
03:02 AM on 12/07/2010
You mean to the Clinton INCREASED rates! I call the normal rates the ones under Reagan. 28% top bracket. Or maybe I call it the rates prior to Woodrow Wilson.... 0% income taxes. =) So-called "normal" is in the eye of the beholder.
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search4meaning
Democracy is the worst govt - except all others
01:23 AM on 12/07/2010
Just a small History Lesson: When Clinton left office, the government was taking in more money each year in taxes than it was spending each year. It was a strange, rarely seen phenomenon called a *SURPLUS*.

Bush pronounced that it was wrong for the government to take in more money than it *needed*. So he decided to implement what was known as the "Bush Tax Cuts":
-> Avg amount given to those earning under $250K? Around $ 500
-> Avg amount given to those earning over $250K. Around $100,000

Bush "fixed" that surplus problem via the "Bush Tax Cuts" (which were designed to be temporary and end after ten years), unfunded changes to Medicare, and oh yes, starting two wars. No more surplus, hooray!!! Instead, our country now holds HUGE deficits.

Which means that the government is no longer taking in more money than it needs. The original reason that Bush gave for the tax cuts is now invalid.

Giving tax cuts, especially to the rich, WHILE WE ARE AT WAR!!! HELLO!!! WE ARE STILL AT WAR!!! is not only disgusting and immoral, it is fiscally irresponsible. Whatever happened to the concept of PAY AS YOU GO?

Allowing tax cuts that were scheduled to expire to continue is called "giving rich people a new tax cut".
11:25 AM on 12/07/2010
When Pelosi took over in Jan 2007, everything from that point on was going to be PAYGO !!
What happened ?? Pelosi has spent more than all the HS`s since Muhlenberg in 1789, combined !!
01:57 PM on 12/06/2010
Who are you and what have you done with Senator Feinstein? Who ever you are I could not agree more. glad to see we are on the same side of this issue.
11:48 AM on 12/06/2010
Republicans say the millionaires are going to create jobs.That we will hold them to.This is one lie they are going to have a hard time with.
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LibertyRoy
Listen up! I am a Libertarian, not a Republican!
08:42 PM on 12/06/2010
I think that if one wants to defend the extensions to those making over $250k, it should NOT be based on job creation. It should be based on ethics. I believe that it is wrong to have someone work more for the government than themselves and that is what they would get...

39.6% Federal Tax
11.3% CA state tax
2.4% FICA?SSDI
53.3% TOTAL taxes.

I find that wrong no matter how much one makes. I call it slavery when you work primarily for the state.
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Patricia013
American made - where the heck are my badges????
12:14 PM on 12/07/2010
One man I know who was pretty wealthy said - I make the money, its only fair I pay the tax. I'd rather make the money and pay the tax then be poor and pay little or no tax! When he said this...he was at the old rate. I never forgot that. I would love to be making enough to pay 53.3 percent...instead of scraping to make the bills every month.
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LemonMeringue
Happy Birthday, Steve Jobs - Feb. 24th
04:14 AM on 12/07/2010
No they aren't going to have a hard time with that lie. They have been telling that lie for decades. The got tax cuts for a decade and jobs went bye bye.
This user has chosen to opt out of the Badges program
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09:53 AM on 12/06/2010
My question is, Is the GOP afraid to let the Bush Area tax cuts expire, If things get better because of the Tax cuts expiring than the Republican party suffers, but on the other hand if things get worse or don't improve than their right, right, so let them expire and see who's ....
07:48 AM on 12/06/2010
If you truly believe this, then we can depend on you to vote no on any legislation that support it, yes? Let us see if that happens.
02:17 AM on 12/06/2010
So, she's trying to come off as a progressive, at least on this issue?

Doesn't she have criminal wiretaps to approve of, or US taxpayer dollars to use to send more arms to support the State terrorism of Israel?

She can bite me.
02:05 AM on 12/06/2010
The Fair Tax could be a first step in defeating federal tyranny

Read, comment, follow, and share. Start a movement. Join a revolution:

http://confederateunderground.blogspot.com/2010/12/fair-tax-could-be-first-step-in.html
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Randian Roark
Perishing from the orgy...
11:18 AM on 12/06/2010
But haven't you heard? The fair tax is unfair to the poor, who already don't pay taxes!
cuchulain
Occupy the Tao
01:57 PM on 12/06/2010
The working poor pay FICA, and they pay a higher percentage of their income than a billionaire.

FICA for Social Security stops at 106K. 100% of your income up to that point is taxed. If you make a million, just 10% is subject to that tax. 10 million? You get taxed on 1% and so on.

Beyond that, any "fair tax" means the Middle Class gets a tax HIKE. No way around that. If you go from a progressive tax to a flat tax, the bottom has to go up to meet the top coming down.

Think of weights and measures, or a seesaw. To get that even, you have to raise the bottom.

So, you want the Middle Class to pay more?
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ron ray
mad as heck moderate who won't take it much longer
02:26 PM on 12/07/2010
the fair tax is a crock. those who work hard and spent most of the money they make pay the highest tax rates, while those make enough to save, invest and score with capital gains pay nothing on whole classes of income.