Here come the “Milker Bills”

In Peter Schweizer’s great best seller, Throw Them All Out, he writes about what are called “Juicer” or “Milker” bills. They are legislation proposed in the House or Senate with the sole purpose of getting people to donate money to the congressman’s reelection campaign. From page 149 of the book we read:

Milker bills are often introduced in the area of taxes… Members of Congress threaten to impose a new tax and then withdraw the bill after campaign contributions flow in. Of course, the contributions were the point in the first place.

In the summer of 2006, Senate Majority Leaser Harry Reid announced that he wanted a tax hike on hedge funds. At the time those funds were taxed at the capacity gains rate of 15%. Reid declared that Democrats would put at the top of their agenda taxing hedge fund profits as regular income rather than as capital gains, meaning rates of 25% or higher. So they began working on legislation.

As expected the donations from the hedge fund industry to Democrats exploded. Well it looks like Senator Reid has learned his lesson well. He clearly plans to introduce a new crop of “Milker” bills for the new year, per Tuesday’s Politico Playbook:

DRIVING THE YEAR – Chicago Tribune, 2-col. lead, “Drumbeat rises to tax rich more: Democrats embrace Obama’s agenda; polls back larger share,” by Lisa Mascaro: “Congressional Democrats, more liberal since the 2010 elections thinned out moderates’ ranks, are embracing the populist agenda President Obama outlined in his State of the Union speech. Senate Majority Leader Harry Reid of Nevada is planning votes all spring and summer in an attempt to end the tax breaks that corporations and wealthy individuals like Republican presidential nominee Mitt Romney enjoy. With the House controlled by Republicans, none of Obama’s tax measures is expected to become law.

Emphasis is mine. Of course they are not expected to become law. Milker bills never are. They are just there to extort campaign contributions from people whose lives would be ruined if the bills ever passed. Silly people.

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