Democrats in the Senate Super Committee released its list of proposals to reduce the deficit, and it unsurprisingly includes over one trillion dollars in new taxes. ABC reports, “Democrats have proposed a framework for the Super Committee that multiple aides confirm is around $3 trillion in deficit reduction over the next decade through a cocktail of cuts to entitlements, including Medicare, and as much as $1.3 trillion in new tax revenues.” The Super Committee is faced with the task of finding a minimum of $1.3 trillion in savings before November 23, when a round of automatic spending cuts will take effect.
Democratic Representative John Lewis of Georgia defends the proposal by demonizing the so-called wealthy (anyone making over $250,000 a year). “The people of this country are looking for fairness. They are sitting in and sitting down to protest the unwillingness of the government to legislate with their best interests in mind,” said Lewis, who also criticized proposals to cut entitlement programs. “These proposals rob from the poor, the sick and the elderly, the very least amongst us.”
Regardless of the tired talking points, however, history reveals that tax increases will not target the group which lawmakers are attempting to hit with new taxes. Instead, the middle class will suffer as a result because those who do comply with paying the new taxes are individuals who own businesses that drive the economy in the country. The uber-wealthy will simply find places to hide their money, such as in foundations.
Additionally, journalist Kurt Nimmo explains, “After the $250,000 and above ‘rich’ (up to the untouchable multi-billionaires who never pay taxes, as [Warren] Buffett admitted) are taxed out of existence, the federal leviathan beast will turn on the middle class to raise revenue to pay for manufactured deficits (and a truly unpayable national debt) it insists we owe the bankers.”
The Republicans on the Super Committee did not propose new taxes in their counteroffer. According to one GOP aide, the Republican proposal increases revenue without proposing tax hikes. Instead it includes $700 billion in spending reductions to Medicare and Medicaid. It also includes an offer of more than $600 billion in savings from new tax revenue.