- Jun 6, 2007
- 852
- 483
- 910
The WhiteHouse and the Democrat Leadership is making a humongous mistake in sticking with their policy of only renewing the Bush tax cuts for Americans with incomes less than $250K/yr and in making a showy effort to pass such legislation. They should have listened to many of their best leaders like Senator Chuck Schumer, Senator Bob Casey and Representative Steny Hoyer who were calling for the party to pursue a compromise with the Republicans that would extend the Bush tax cuts for incomes up to a million dollars. Let's be honest the screws were put to these guys whether it be a call to party loyalty or a call to help the Party in the November elections which explains their shift on the issue. The reasons the Democrats should pursue the compromise is that first if the Democrats do this they remove a super big criticism that the Republicans have against the Democrats come the elections this November that being that the Democrats want to raise taxes significantly on small businesses many who taxfile as individuals and who are the major job creators in our economy at this time where the country is hurting terribly for jobs; as many experts are saying by far the most important issue this election year is jobs and the Democrats adherence to this 250k cut-off for extending the Bush tax cuts significantly hurts them as being the best party to lead America going forward. Secondly, what if Barack Obama wins re-election obviously the Democrats are going to want to create lots of jobs which the country desperately needs and with the European debt crisis which at best is with us for at least another two years because the players aren't even talking about the needed solution a giant firewall and the world economies are in a malaise with no end in sight and the U.S. has overwhelming deficit and debt problems there isn't any great tools the Whitehouse will be able to use to create jobs giving this little economic juice to small businesses which extending the Bush tax cuts will give is real help on the jobs front Democrats shouldn't want to throw away because there won't be many other helps the Whitehouse will be able to provide. If the Whitehouse is planning a big stimulus package to create jobs if they win in November they better wake-up from their dream world because that ain't happening the American people don't want it there is too much waste in those programs, they take too long to see an impact, and the job creation isn't long-term job creation which is what is needed and opposition from the sovereign debt markets over the country increasing its debt load from such stimulus signals public opposition to the idea.
If the Democrat leadership is banking on polls that indicate that most American support increasing taxes on the wealthy to help solve the country's deficit problem that is true but the American people are a smart people they can see the wisdom of continuing these tax breaks for small businesses until the country brings the unemployment rate back under the six percent normal ceiling then the country can return to the Clinton era tax rate on these upper income tax payers to address this national debt issue the nation's probably only talking four to five years to achieve this unemployment rate goal this is a trade-off most Americans will see as right. The Democrat leadership is viewing this issue wrong they are viewing this issue like all Americans are their loyal party base who just accept their party planks and don't scrutinize it very carefully and they are wrong many Americans will see this as a Democrats obstructing job growth issue and the Republicans will rack up many votes over it. One might criticize this course by saying the Republicans won't accept this millionaire cut-off offer because they just want to do the one-year extension for all income levels which they have been running around the country proclaiming. The critics may be right however to smart Americans the Republicans position smells to high heavens first a one year tax extension means that in 2014 an election year the Congress is going to have to be faced with the vote of having to not extend the Bush tax cuts for the wealthy meaning those Congresspersons that don't vote for the extension in 2014 are going to have to carry the label of tax raisers during that years' election season which is a huge liability running for Congress; secondly, the Republicans are calling for taking this one year to do tax reform, rewrite the tax code, they say both parties are for tax reform so a positive outcome should be assured - this is absolute garbage back in 2009 both parties were for health care reform and what did this effort reap for the nation it put the nation through such divisiveness the country hasn't seen the likes of in forty years since the Vietnam era protests any knowledgeable persons with good faith know that reforming the tax code in the area of personal income taxes is going to unleash forces and emotions in this country that will leave scars that will last many years and frankly good judgment should conclude nothing meaningful and worth the effort will result on personal income tax reform (corporate tax reform is another matter), Congress ain't gettin rid of the home loan interest deduction, ain't gettin rid of the exclusion on taxable income of premiums paid on employer sponsored health insurance ain't gettin rid of charitable donations deductions, etc. there will be too much public opposition! If the Democrats pursue the millionaire cut-off course one should find it really difficult for the Republicans not to agree because it cuts the legs out from under the Republicans for their opposition to the Democrats on this issue that the Democrats will be hurting small business job creators with their plan it takes away this sympathetic argument of Republicans have how the Democrats want to raise taxes on these great Americans who have placed all their assets on the line to do that patriotic act of starting a small business and dedicate their whole life to this public service of helping the economy and creating jobs, it puts the Republicans in the position of defending millionaires which to working and middle class Americans who mostly make under $75,000/year is a real turn-off. Democrats should agree to this because it would bring closure to this Bush tax cut issue for at least a couple of election cycles which is continually clouding and taking undue public attention during elections and obstructs the country from making meaningful headway on many other important issues facing the nation like energy policy, health care policy, housing policy, etc..
If the Democrats agree and bring about this millionaire cut-off compromise at this time they will be doing a significant amount of good for the country from the standpoint that they will be settling a real worry for the American people and many of America's small businesses which should dramatically improve consumer and small business confidence which should lead to increased consumer and small business spending and some increase in small business hiring which will give valuable help to the economy! In this same legislation, Congress could again provide this valuable help to consumer and business confidence by postponing until July 1, 2013 effectuation of the $100 billion sequestration cuts which are scheduled to begin January 1, 2013. These Jan 1. sequestration cuts are causing major disruptions to the economy, the large number of businesses that do work for the U.S. military are threatening to send out mass layoff notice before this year's elections, leading economists even the Fed. Chairman are saying the sequestration along with failure to extend the Bush tax cuts could send the country over an economic cliff and into a recession. The Republicans call to negotiate different cuts to replace the sequestration cuts before the November elections is off-the-charts unreasonable no way it can happen in that time frame, responsible Americans know the country needs the "grand bargain" with revising the corporate tax code and changing the entitlement programs and many other major changes in government finances and there is no way it could happen until the middle of next year at best. In this legislation, Congress should likewise extend the debt ceiling until July of 2013 because this issue likewise needs the "Grand Bargain" which again can't be accomplished until the middle of next year!
If the Democrat leadership is banking on polls that indicate that most American support increasing taxes on the wealthy to help solve the country's deficit problem that is true but the American people are a smart people they can see the wisdom of continuing these tax breaks for small businesses until the country brings the unemployment rate back under the six percent normal ceiling then the country can return to the Clinton era tax rate on these upper income tax payers to address this national debt issue the nation's probably only talking four to five years to achieve this unemployment rate goal this is a trade-off most Americans will see as right. The Democrat leadership is viewing this issue wrong they are viewing this issue like all Americans are their loyal party base who just accept their party planks and don't scrutinize it very carefully and they are wrong many Americans will see this as a Democrats obstructing job growth issue and the Republicans will rack up many votes over it. One might criticize this course by saying the Republicans won't accept this millionaire cut-off offer because they just want to do the one-year extension for all income levels which they have been running around the country proclaiming. The critics may be right however to smart Americans the Republicans position smells to high heavens first a one year tax extension means that in 2014 an election year the Congress is going to have to be faced with the vote of having to not extend the Bush tax cuts for the wealthy meaning those Congresspersons that don't vote for the extension in 2014 are going to have to carry the label of tax raisers during that years' election season which is a huge liability running for Congress; secondly, the Republicans are calling for taking this one year to do tax reform, rewrite the tax code, they say both parties are for tax reform so a positive outcome should be assured - this is absolute garbage back in 2009 both parties were for health care reform and what did this effort reap for the nation it put the nation through such divisiveness the country hasn't seen the likes of in forty years since the Vietnam era protests any knowledgeable persons with good faith know that reforming the tax code in the area of personal income taxes is going to unleash forces and emotions in this country that will leave scars that will last many years and frankly good judgment should conclude nothing meaningful and worth the effort will result on personal income tax reform (corporate tax reform is another matter), Congress ain't gettin rid of the home loan interest deduction, ain't gettin rid of the exclusion on taxable income of premiums paid on employer sponsored health insurance ain't gettin rid of charitable donations deductions, etc. there will be too much public opposition! If the Democrats pursue the millionaire cut-off course one should find it really difficult for the Republicans not to agree because it cuts the legs out from under the Republicans for their opposition to the Democrats on this issue that the Democrats will be hurting small business job creators with their plan it takes away this sympathetic argument of Republicans have how the Democrats want to raise taxes on these great Americans who have placed all their assets on the line to do that patriotic act of starting a small business and dedicate their whole life to this public service of helping the economy and creating jobs, it puts the Republicans in the position of defending millionaires which to working and middle class Americans who mostly make under $75,000/year is a real turn-off. Democrats should agree to this because it would bring closure to this Bush tax cut issue for at least a couple of election cycles which is continually clouding and taking undue public attention during elections and obstructs the country from making meaningful headway on many other important issues facing the nation like energy policy, health care policy, housing policy, etc..
If the Democrats agree and bring about this millionaire cut-off compromise at this time they will be doing a significant amount of good for the country from the standpoint that they will be settling a real worry for the American people and many of America's small businesses which should dramatically improve consumer and small business confidence which should lead to increased consumer and small business spending and some increase in small business hiring which will give valuable help to the economy! In this same legislation, Congress could again provide this valuable help to consumer and business confidence by postponing until July 1, 2013 effectuation of the $100 billion sequestration cuts which are scheduled to begin January 1, 2013. These Jan 1. sequestration cuts are causing major disruptions to the economy, the large number of businesses that do work for the U.S. military are threatening to send out mass layoff notice before this year's elections, leading economists even the Fed. Chairman are saying the sequestration along with failure to extend the Bush tax cuts could send the country over an economic cliff and into a recession. The Republicans call to negotiate different cuts to replace the sequestration cuts before the November elections is off-the-charts unreasonable no way it can happen in that time frame, responsible Americans know the country needs the "grand bargain" with revising the corporate tax code and changing the entitlement programs and many other major changes in government finances and there is no way it could happen until the middle of next year at best. In this legislation, Congress should likewise extend the debt ceiling until July of 2013 because this issue likewise needs the "Grand Bargain" which again can't be accomplished until the middle of next year!
