{"id":13588,"date":"2013-01-04T20:17:06","date_gmt":"2013-01-04T20:17:06","guid":{"rendered":""},"modified":"2013-01-04T20:17:06","modified_gmt":"2013-01-04T20:17:06","slug":"middle_class_got_creamed_in_cliff_deal","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2013\/01\/04\/middle_class_got_creamed_in_cliff_deal\/","title":{"rendered":"Middle Class Got Creamed in Cliff Deal"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: “Workers Making $30,000 Will Take a Bigger Hit on Their Pay Than Those Earning $500,000 Under New Fiscal Deal — Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the [supposedly] nonpartisan Tax Policy Center. Earners in the latter group will pay an average 1.3% more — or an additional $2,711 — in taxes this year…” This, by the way, is just the FICA tax, I believe, \u2019cause there\u2019s a lot more…<\/p>\n

<\/a><\/p>\n

They\u2019re gonna be paying a lot more than $2,000. (laughing) That\u2019s just on this one tax, the payroll tax. The people that earn “between $30,000 and $200,000 will see their paychecks shrink by as much as 1.7%,” and 1.7% of 30 grand is a lot more than 1.3% of 500 grand. So the people that make 30 or 40 grand are going to be out about $1700. The people who make 500 grand are gonna be out $2700.<\/p>\n

Now, the theory is that if you make 500 grand it\u2019s easier to miss $2700 than if you make 30 and miss $1700. And, by the way, folks, this is all true. And, you know what? There\u2019s nothing that can be done about it unless you confiscate the money from the rich. There\u2019s just no way that this is ever going to change. It\u2019s mathematics. And this leads us into an argument debate over flat tax.<\/p>\n

One of the reasons a flat tax is gonna have such a tough time is if you have a 20% tax rate for everybody, well, 20% of $1 million is a lot less than 20% of $70,000, let\u2019s say. So the critics will come along, “That\u2019s just not fair! You need to be taxing those people that are a millionaires at 80%!” By the way, some Democrats are suggesting that we go back to a top rate of 70% now. That\u2019s what it was pre-Reagan. Because the notion is…<\/p>\n

I\u2019m telling you what\u2019s on tap here. I\u2019ll tell you what\u2019s really the idea. It\u2019s not really Bush. I\u2019ll tell you what\u2019s on tap here. The Democrat Party and Barack Obama — particularly Obama. Obama has a lot of admiration for Reagan in a politically sense, not policy-wise. Obama\u2019s admiration for Reagan is in the sense that Reagan was a truly transformational president. Reagan genuinely changed the trajectory of this country.<\/p>\n

He changed the overall foundation of this nation and its economy with Reaganomics (supply-side, trickle-down, whatever you want to call it). Now, Obama hates that. He hates Reaganomics. He wants to be as transformational a president as Reagan was, and what he seeks to do is erase every trace of Reagan from America, particularly economically. That means erasing the whole notion of lowering tax rates to grow an economy.<\/p>\n

<\/p>\n

Lowering tax rates to allow people to keep more of what they earn, lowering tax rates to create more jobs, more tax revenue? That\u2019s what Obama wants to dispense with. That\u2019s what he wants to do away with. That\u2019s what\u2019s happening here, what is really the objective, and the light went off for me when I saw it. It was just this week. A number of Democrats are actually suggesting this. They\u2019re trying to be intellectually honest about it, or they\u2019re trying to sound intellectually honest.<\/p>\n

They are saying that the economy\u2019s on solid-enough footing now and that Obama has proven that raising taxes (and Clinton proved it, too, by the way) causes economic growth. Remember, that\u2019s the big lesson from Clinton. The Reagan tax cuts were reversed by Clinton, and retroactively. And the Democrats want to say that the economic boom of the nineties was because taxes went up. And a bunch of their low-information voters believe it.<\/p>\n

So the theory is: “Raise taxes again now so economic growth takes place,” which it won\u2019t, but the government will grow, and Santa Claus gets bigger, and Santa Claus gives away more. So the appearance is it\u2019s growing and it\u2019s doing great. So the Democrats are saying, “Since Obama has brought about a recovery by raising taxes and eliminating loopholes, we can go back to a 70% rate.”<\/p>\n

I\u2019ll tell you right now: The Republicans in Washington are clueless. The Republicans in Washington will hear a Democrat say that and you know what their reaction will be? “Oh, come on! (laughing) Come on, 70%? Be serious! Ha ha ha! We\u2019re never gonna go back to that.” Meanwhile, the Democrat are gonna make every move possible to get back to it. This is one of the big problems: Nobody takes the Democrats seriously.<\/p>\n

<\/p>\n

The Democrats and Obama, oftentimes, will tell us exactly what they\u2019re gonna do. And it sounds so outrageous, nobody believes \u2019em. Then they embark on it, and they get it done on occasion. So they are making a move, and I\u2019m just telling you right now what Obama\u2019s number one objective is. Well, it\u2019s hard to say number one. But in his top five is to erase all vestiges of the Reagan years; to have an entire and total, complete revision of the history of the Reagan years.<\/p>\n

The Democrats are bothered by that as much as anything in American history bothers them: The success of the Reagan years. It\u2019s a big threat. The success of the Reagan years was one of the biggest threats the Democrats ever faced, because the success of the Reagan years demonstrated how wrong Democrats are, how dangerously wrong they are. That\u2019s why there\u2019s been a constant rewriting of history ever since Reagan left office, and even while he was in office.<\/p>\n

So just don\u2019t doubt me. Their express purpose now is to see to it that, for example: In your average high school history textbook, the largest reference to Reagan will be a paragraph, and it will be about how Reagan destroyed this group and that union and how Reagan was responsible for AIDS, and Reagan was against gay rights, and he was against all these social changes.<\/p>\n

That\u2019s the objective. That\u2019s what\u2019s being undertaken now. I\u2019m not trying to depress you. I\u2019m just trying to get you prepared. When you then move to the Republican Party side and you understand that some Republicans didn\u2019t like Reagan? They didn\u2019t like conservatism. Some Republicans are big government guys. That\u2019s where the power is. It\u2019s where you get your hands on the money.<\/p>\n

Reagan was about returning as much money to people who produced it and own it as possible. So that\u2019s what\u2019s underway now. And Obama doesn\u2019t have much opposition to this. His primary opposition is here on this program and certain other talk shows, but there\u2019s not much opposition to Obama in the government. There\u2019s not much opposition to Obama in the blogs. There\u2019s not a whole lot of opposition to Obama in conservative media. But there certainly isn\u2019t any opposition that he faces, not serious opposition, in Congress. They pretty much let him have what he wants so that people don\u2019t dislike the Republicans. That\u2019s their mind-set. <\/p>\n

<\/p>\n

While all this is going on, everybody in this country is getting soaked, and that\u2019s the point of this UK Daily Mail story. “Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal. … Nearly 80 percent of households will pay more money to the federal government as a result of the fiscal cliff deal.” Not 2%. Eighty percent. You know where the 20% that won\u2019t is? It\u2019s what we discussed yesterday: asset wealthy people. Think Warren Buffett, who after the fiscal cliff deal, who after Obama has raised taxes on the rich, Warren Buffett\u2019s tax rate will remain lower than his secretary\u2019s. <\/p>\n

Think Jeffrey Immelt of GE. Think hedge fund people, specifically hedge fund people because they are governed by something called the carried interest loophole which is a very complicated thing to understand in-depth and in detail but essentially what it is, you know, hedge funds invest other people\u2019s money, and the money that is earned, the gain, the income is not taxed at income rates, i.e., 39.6%. It\u2019s taxed at 20%, the capital gains rate. And that\u2019s really what you need to know about carried interest. And those are the truly rich people in this country, the asset wealthy, people who do not ever worry about the cost of anything and yet don\u2019t have any income, as defined by the IRS as income. They have income, but it\u2019s capital gains income, income from investments, or it\u2019s carried interest, and they pay 20%. <\/p>\n

Now, yeah, they were paying 15, and there is a 3.6% Obamacare surcharge. So they\u2019re paying more. But they\u2019re not paying what the guy making $50,000 is making proportionately and they\u2019re not paying what the guy making two million is paying proportionately. “Eighty percent of households will pay more money to the federal government as a result of the fiscal cliff deal. For most households, the payroll tax takes a far bigger bite than the income tax does.” By the way, a lot of these people that see their paychecks getting smaller are people that don\u2019t pay income tax. What is it, 47, 48% of Americans don\u2019t pay any income tax. That\u2019s the result of Democrats and Republicans trying to get voters in the lower strata of the middle class. <\/p>\n

There\u2019s no income tax, but they pay Social Security tax. They pay payroll tax. And their payroll taxes just went up about 2.4%. So that can be as much as 15, $1,700 a year, divided by however many weeks they get paid in the year. So, while Obama and the Democrats are celebrating, telling everybody only 2% of people are seeing a tax increase, guess what? In fact, they\u2019re actually running around talking about tax cut, because on January 1st, the Bush tax rates expired and everybody\u2019s rates did go up. Then the next day they agreed to the deal. So for 12 hours there was a tax increase that nobody paid, but it was on paper, then the Democrats got to say, “We cut your taxes.” The rates stay the same but it was called a tax cut. And now these people are waking up to tax increases on their payroll side. So we\u2019ll see.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: “Workers Making $30,000 Will Take a Bigger Hit on Their Pay Than Those Earning $500,000 Under New Fiscal Deal — Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the [supposedly] nonpartisan Tax Policy Center. Earners in […]<\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nMiddle Class Got Creamed in Cliff Deal - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/admin.rushlimbaugh.com\/daily\/2013\/01\/04\/middle_class_got_creamed_in_cliff_deal\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"Middle Class Got Creamed in Cliff Deal - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: “Workers Making $30,000 Will Take a Bigger Hit on Their Pay Than Those Earning $500,000 Under New Fiscal Deal — Middle-class workers will take a bigger hit to their income proportionately than those earning between $200,000 and $500,000 under the new fiscal cliff deal, according to the [supposedly] nonpartisan Tax Policy Center. 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