22 November 12

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COMPROMISE, COMPROMISE, COMPROMISE STUPID!!!

  • The dictionary defines compromise as “a settlement in which each side gives up some demands or makes concessions” ; notice that it does not say “my way or the highway” and it does not signal that I will filibuster you until you come over to my side.  The U.S. Congress especially the House of Representatives needs to revisit the meaning of compromise because that is clearly the way forward in this country.  A compromise is a give and take proposition.  Let us look at a possible compromise by examining the position of the Republican Party and the Democratic Party.  Let us look at the question of sequestration and out compromise could settle the issue as outlined below.  I am a strict flat tax advocating but I will compromise my position.  The Republican want to revise the Tax Code and remove all loopholes of their choice that will not plunge the country back into a recession.  Well democrats should support the Republican revision of the Tax Code to raise revenues but if it performs poorly in terms of revenues the Republicans must compromise with the Democrats because they will be short of the trillion dollar reduction in the deficit.  It would then become incumbent on Republicans to support, without conditions, the increase of taxes on all income over $250,000. in order to spare the middle class a tax increase which would surely slow our economic growth and severely dampen consumer demand .  The net gain is that the Republican would get to close tax loopholes to generate an undetermined amount of revenues and Democrats would spare the middle class of a tax increase and everybody but Grover Norquist who is unelected to project the awesome power that he appears to have.  This compromise would give Democrats the additional revenues from the under taxed rich in this country; this compromise allows the Republicans to use their Slash and Burn tactics on the United States Tax Code
  1. One example is to eliminate the Capital Gains Tax where songwriters  who sell songs can report the income as Capital Gains and pay taxes at a 15%  tax rate. Cost to taxpayers is 2.8 million dollars/per year.
  2. Eliminate the allowance for private equity and hedgefund managers allowing them to treat their income as Capital Gains and to pay at a 15% tax rate in lieu of 35%. Priceless.
  3. Eliminate the allowance for businesses to depreciate the cost of buildings and equipment over time where the write-off period is 39 years for non-residential property and 15 years for roads and fences.  It i shortened to seven (7) years for a motorsports entertainment complex.  Cost to the taxpayer 40 million dollars per year.
  4. Eliminate the Hollywood Tax Break where film and TV companies can immediately write off the first 15 million/per year of their production costs; this balloons to 20 million/per year in urban depressed areas.
  5. Eliminate the deducting of civil Court punitive damages.  Cost to taxpayer 31.5 million/per year.
  6. Exclusion of medical insurance and medical care.  Cost to the taxpayer 111 billion/year.
  7. Eliminate the mortgage interest deduction (everybody has to hurt a bit).   Cost to the taxpayer 60.9 billion/per year.
  8. Capital Gains exclusion on home sales would have to be scrapped but the deficit would be reduced.  Cost to the taxpayer 54.2 billion/year.
  9. Eliminate the deduction of interest on public purpose state and local bonds, in other words you would have to start paying taxes on Municipal Bonds thus increasing the cost to state and local governments.
  • To claim that closing loopholes like these can balance the budget is good politics, lying blatantly and it is moronic math.  This is what the Democrats have to compromise with while knowing that the removal of politically cherry picked deductions will not generate sufficient income therefore Republicans shall capitulate on the issue of the Bush tax cuts. The Bush tax cuts will not expire for middle class thus honoring the earners above 250K per year with a chance to honor America with more tax revenue.  Remember the definition of compromise should be honored with some substantive give and take.  Without compromise we are mired in this morass.  All American voters will eventually have to focus on loopholes, spending cuts or revenue hikes and it is going to be painful but there is a solution; do we have the guts to do what is right.  It is too late to work against President Obama’s election; that is over.

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About Sir James

Sir James L. Robinson was born on 12 July 40 to Ruby Nell and Willie L. Robinson; he attended high school in Longview,Texas and attended Southern University on a D-1 Football and Baseball scholarship while majoring in Architecture. He graduated in 1964 w/ B. Arch and earned a Master's degree from Pratt Institute in 1974 as a Martin Luther King Fellow after passing the examination for a Licensed Architect in 1972. He formed Vitto Robinson Architects with William Vitto in 1970 and is still CEO of Robinson Legacy Architects, PC and practicing throughout the Continental United States. He has taught Architecture at City University of New York (CCNY) and Pratt Institute Brooklyn and was granted Knighthood in May 1985. he is the proud father of Kenneth, Gudonna, Maria Theresa, Kerstin, Jasmin, Ruby and James II and he is married to Lady Martha Robinson. RLA Architects has completed 1.5 Billion dollars worth of construction over a 44 year period.

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