Compromise by Obama and Democrats on Bush Tax Cuts Would Put Economy at Risk

Filed in Gather Politics News Channel by on November 5, 2010 0 Comments

 

After Election, Republicans Refuse to Compromise on Tax Cuts for Rich

 

Behind commentary from columnists and pundits is the implicit idea that President Barack Obama is now in a position where he must compromise on anything and everything and give the GOP whatever they want no matter what. The first in a list of issues Republicans hope to nail Democrats on are the Bush tax cuts, which President Obama appears to have agreed to compromise on by extending the cuts to all Americans, including the top 2%.

 

Republican Representative Mike Pence of Indiana told The Hill, “There should be no higher priority than making sure that no American sees a tax increase in January. Not one.” And, “Republicans are going to dig in on that principle.” Former Republican governor and senator of Virginia wrote in a column in the Richmond Times-Dispatch, “The very first act of the new Congress must be extending all of the tax cuts without compromise. Tax increases are job killers and must be stopped.” And, Republican Representative Eric Cantor of Virginia and Republican Senator Mitch McConnell of Kentucky are committed to extending the upper class tax cuts without compromise.

 

The problem with all of this talk of compromise is that extending the tax cuts would add billions of dollars to the deficit. The Washington Post reported in August the Republican plan would add $36 billion to the federal deficit. The Tax Policy Center estimates permanently extending all Bush tax cuts, instead of only extending the middle and lower class tax cuts permanently, would cost $600 billion.

 

Liberal economist Robert Reich wrote recently the Republicans will only ensure the economy “remains anemic” and they may even create another “bubble” that bursts.

 

And, New York Times columnist Paul Krugman wrote in September about how the tax cuts originally were passed saying Republicans “bundled huge tax cuts for wealthy Americans with much smaller tax cuts for the middle class, then pretended that it was mainly offering tax breaks to ordinary families.” Republicans went around Senate rules that would have required offsetting the $1.3 trillion tax cut “by putting an expiration date of Dec. 31, 2010” on the cuts.

 

Senate and House Republicans held the middle class hostage prior to the election, refusing to vote on tax cut legislation that didn’t cut taxes for the wealthy. They intend to continue to do this and will blame Democrats and President Obama if, come January, middle class families see their taxes increase.

 

President Obama doesn’t want to engage in brinksmanship. That much he made apparent in his post-midterm election press conference Wednesday. But, that’s how Republicans do politics.

 

Refusal to engage in brinksmanship will only hurt the Democratic Party further. It hurt the party before the election when they chose to not bring the extension of tax cuts up for a vote and, if the party cannot stand up to Republicans, the Party will continue to see support for the Party weaken.

 

Also, compromising won’t make things better. Republicans are indicating they won’t even entertain a phasing out of tax cuts for the rich over a short term period (which would still be detrimental to the economy). They won the election and feel like they can ram tax cuts down the throat of Democrats and gain a huge win for Republicans.

 

Reason, even sanity, supports standing before the American people and explaining the Republicans want to see the deficit cut but they also want to extend tax cuts to the rich. Extending tax cuts will increase the deficit by billions of dollars. This will only make the economy worse for American families and may even create a bubble that could lead to another economic collapse. So, the tax cuts for the rich must be allowed to expire or Republicans must confess that they really are for ballooning deficits.

 

Sadly, the media echo has decided liberal or Democratic ideas were wholly rejected in the 2010 Election. The media echo contends President Obama forgot this country is a center-right nation. President Obama is now impetuously being accused of having an ego problem. So, the pressure to give Republicans what they want will likely be overwhelming and he will cave in to GOP ruffians, putting the bottom 98% of America at economic risk.

 

(Photo by Truthout.org)

About the Author ()

Kevin Gosztola is a multimedia editor for OpEdNews.com. He follows media & activism, religions and their influence on politics, and sometimes writes movie reviews for OEN. His work can be found on Open Salon, The Seminal, Media-ocracy.com, and a blog

Leave a Reply