Editore"s Note
Tilting at Windmills

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July 20, 2009

PELOSI SIGNALS MOVEMENT ON SURTAX.... As of last week, most of the House Democratic leadership was prepared to pay for health care reform with a graduated surcharge, or "surtax," on the very wealthiest Americans. As written, it would apply to only 1.2% of Americans, leaving the vast majority unaffected.

Yesterday, House Speaker Pelosi signaled her willingness to narrow this even more.

Trying to sell a historic health bill to a balky caucus, House Speaker Nancy Pelosi told POLITICO in an interview that she wants to soften a proposed surcharge on the wealthy so that it applies only to families that make $1 million or more.

The change could help mollify the conservative Democrats who expect to have a tough time selling the package back home. Their support is the single biggest key to meeting the speaker's goal of having health care reform pass the House by the August recess.

The bill now moving through the House would raise taxes for individuals with annual adjusted gross incomes of $280,000, or families that make $350,000 or more.

"I'd like it to go higher than it is," Pelosi said Friday.

The speaker would like the trigger raised to $500,000 for individuals and $1 million for families, "so it's a millionaire's tax," she said. "When someone hears, '2,' they think, 'Oh, I could be there,' because they don't know the $280,000 is for one person.

"It sounds like you're in the neighborhood. So I just want to remove all doubt. You hear '$500,000 a year,' you think, 'My God, that's not me.'"

The details of this are a little unclear. Would Pelosi seek higher surcharges on millionaires, or seek additional revenue streams to make up the difference?

Either way, part of me wonders whether this was the goal all along -- start with a surtax on families that make $350,000 or more, wait for the uproar, and then negotiate the figure upwards.

Whether this will constitute welcome progress among Blue Dogs remains to be seen.

Steve Benen 9:25 AM Permalink | Trackbacks | Comments (20)

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I'd like to hear some of the responsible rich come out and say the things that Warren Buffett, et al have been saying- "Pony up, Fat Cats, and Do The Right Thing."

I'm old enough to remember a 90%-that's NINETY- top tax bracket, and I don't remember the Mellons, Scaifes, and their ilk dining on stale crusts of bread as a result.

Speaking of food, when all else fails, Eat the Rich. . .

Posted by: DAY on July 20, 2009 at 9:33 AM | PERMALINK

Whether this will constitute welcome progress among Blue Dogs remains to be seen.

My money is on NO. Blue Dogs are Republicans with D's after their names. Republicans core motivation is No New Taxes EVER! There is nothing you can do to change that (except maybe tax the poor).

Posted by: martin on July 20, 2009 at 9:39 AM | PERMALINK

So far it seems that only those with very low incomes can get on the public option. How about letting people who have larger incomes and want to join the public option pay a little higher premium?

Posted by: coral on July 20, 2009 at 9:40 AM | PERMALINK
So far it seems that only those with very low incomes can get on the public option. How about letting people who have larger incomes and want to join the public option pay a little higher premium?

This is the same goddamn mistake the Democrats ALWAYS make (at least in recent decades- FDR knew better.) They go out of their way to do nothing for middle-class voters and then wonder why the voters eventually stop being motivated to do anything for THEM.

Posted by: Steve LaBonne on July 20, 2009 at 9:44 AM | PERMALINK

These non-House broken Blue Dogs demonstrate the importance of spaying and neutering.

Posted by: berttheclock on July 20, 2009 at 9:45 AM | PERMALINK

I think the million threshold is low. Any day now I expect to hit the lotto jackpot and then this confiscatory policy will apply to ME!

Posted by: Chopin on July 20, 2009 at 9:47 AM | PERMALINK

okay, the dems are a spineless bunch, it is their chief characteristic (just as the republican's chief characteristic is that they are borderline sociopaths)

but

it is quite sad to see -- as a scale of measure -- that what is likely to be a raise in taxes on those doing very very well in this country is so very very minimal in ratio to the incredible suffering, distress and family disasters exploding all over the country financially -- and otherwise due to the economy.

a really nerdy dude could use the reference as a rule of thumb as to how lost we are as a society from a healthy sense of the "common good."

a nietzschean dude can use his nose and smell the stench of it, everywhere.

Posted by: neill on July 20, 2009 at 10:03 AM | PERMALINK
it is quite sad to see -- as a scale of measure -- that what is likely to be a raise in taxes on those doing very very well in this country is so very very minimal in ratio to the incredible suffering, distress and family disasters exploding all over the country financially -- and otherwise due to the economy.

And let's not forget that those disasters were in fact CAUSED by a large, criminal subset of the rich assholes whose ill-gotten gains we're so tenderly concerned not to over-tax. That just makes the whole thing even more oderiferous.

Our society is broken. Badly broken.

Posted by: Steve LaBonne on July 20, 2009 at 10:07 AM | PERMALINK

let's not forget that those disasters were in fact CAUSED by a large, criminal subset of the rich assholes

you betcha -- and the criminal corporate thuggery by which they operate...

Posted by: neill on July 20, 2009 at 10:31 AM | PERMALINK

Why not just return to the days of Ronald Reagan? A 50% marginal tax rate on incomes over $1 million. Yes. St. Ronnie had a 50% marginal tax rate for most of his terms.

Posted by: Tigershark on July 20, 2009 at 10:37 AM | PERMALINK

Neill & Steve LeBonne: Thanks for your comments above. Sad, but so true....

Posted by: Little Dick on July 20, 2009 at 10:41 AM | PERMALINK

I don't have a problem with the surtax idea, but how about throwing in some taxes on stock speculators and banks while we're at it? They need to pay back taxpayers for screwing up the economy anyway.

Posted by: Ron E. on July 20, 2009 at 10:44 AM | PERMALINK

I don't have a problem with the surtax idea, but how about throwing in some taxes on stock speculators and banks while we're at it? They need to pay back taxpayers for screwing up the economy anyway.

Proposals have been around forever -- since the birth of the Republic -- for a small transaction tax on stocks, etc. that would not only raise useful revenue, but damp down by some tiny fraction market volatility by making prices sticky.

What most people don't know is that such a federal tax actually existed from 1914 to 1966...

Posted by: Davis X. Machina on July 20, 2009 at 12:04 PM | PERMALINK

Here's the question... would wealthy Americans rather help pay for a healthy society now now with a minor tax, or pay for the consequences later when massive amounts of people (baby boomers) who do not have health insurance start flooding the hospitals and nursing homes.

Posted by: Kurt on July 20, 2009 at 12:36 PM | PERMALINK

The speaker would like the trigger raised to $500,000 for individuals and $1 million for families, "so it's a millionaire's tax," she said. "When someone hears, '2,' they think, 'Oh, I could be there,' because they don't know the $280,000 is for one person.

Are these the same people who aren't sure how many houses they own?

I left my party lying around here somewhere... I just had it! Anyone seen it?

Posted by: toowearyforoutrage on July 20, 2009 at 1:29 PM | PERMALINK

Why does everyone think taxing the rich doesn't get passed along in thier products to the poor. The tax will not be absorbed by the producers. It will be passed along. How about we stop making everyone think somebody will take care of thier problems for them. We should be helping them provide for themselves. The biggest responsibilty we have as humans is to take care of ourselves and our family.Not to see if we can use the power of the gun to take what others have earned. If you think anyone needs to pay more tax then I think you should at least voluntarily pay more yourself. Wasn't this what started the Revolutionary War? Isn't this a big reason for us founding a system different than England? Remember, what one person consideres excess another one may not. Bottom line is if they earned it they should keep it. If they stole it they need to be in prison. Not everyone thats rich is a thief. You keep your "services" and I'll keep my money. I bet I will live better than you! Sorry for the rant but this is utter BS. Whatever happened to the idea of freedom?

Posted by: cld1662 on July 20, 2009 at 6:08 PM | PERMALINK

People forget previous democrat lies:

Origins of the income tax: 1% only on the rich
Socialist Security: 3% on those who voluntarily want to participate.

How'd thoe work out?

Posted by: John K on July 20, 2009 at 7:45 PM | PERMALINK

Employers will ensure their employees are insured or pay a penalty fine which will go to insuring the employees.

Individuals who are not insured at that point can buy into any insurance plan they want and can afford.

Anybody can buy into the public option!

The poor can receive a subsidy. That's where the big cost of this reform is.

Soooooo, the millionaires and billionaires and trillionaires can buy into the public option the same as anyone else. They might even go for the barebones plan to save a few bucks.

Wouldn't that be curious - millionaires, middle-class, the working poor and the seriously poor all on the public option if they're not otherwise covered through an employer plan?

Posted by: MarkH on July 20, 2009 at 7:55 PM | PERMALINK

The Bluedogs just need to be smacked....hard. If you can't sell a surtax on somebody making 280K you aren't a pol. How come these idiot Bluedogs always manage to sell really crappy legislation but they can't sell good legislation. And I finally figured out why they're called blue dogs - it's because not enough good red blood gets to their brains. They are suffering from brain hypoxia.

Posted by: warren terrah on July 20, 2009 at 9:45 PM | PERMALINK

Hi guys. Truth has beauty, power and necessity.
I am from Barbuda and also now'm speaking English, give please true I wrote the following sentence: "During the five aid court on february 23, 1761, otis rarely went low flat sums, visiting their actor of top individuals and playoffs of battle."

With respect :-), Melva.

Posted by: Melva on September 8, 2009 at 11:25 AM | PERMALINK
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