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Why I’ve Changed My Mind About The Obama/Republican Tax Compromise
Posted By John Hawkins On December 14, 2010 @ 9:00 pm In NewsReal Blog | Comments Disabled
Five days ago, I tentatively supported the The Obama/Republican Tax Compromise,
In other words, the choice is to take this deal or let the Bush tax cuts expire in the middle of a recession, when we desperately need to stimulate the economy. On the merits, it’s far from a perfect deal, but it moves the ball more our way than the Left’s way and I think Republicans in the Senate should take it.
This was never a great deal, but my thinking was that the benefits of stimulating the economy outweighed the significant negatives,
How smart is it for us to borrow money from the Chinese in order to pay people NOT TO WORK for 3 years? It’s not. It’s actually pretty dumb.
Then there’s the death tax. Currently, it’s zero. Under this deal it goes up to 35%. So, yes, we will be raising taxes in a recession — and we won’t be getting a permanent deal on the Bush tax cuts either.
So, the criticisms being leveled at the bill by Jim DeMint and the Club for Growth are very valid. If you’re a conservative who doesn’t like this bill, in all honesty, you have good reasons not to like it.
Since then, this deal has only gotten less attractive. For one thing, Obama has signaled that he intends to try to make the Social Security tax cut in this deal permanent,
One of those fights will be over the very thing that some Democrats are angry about: The two-year extension of George W. Bush-era tax cuts for the nation’s wealthiest Americans.
“When they expire in two years, I will fight to end them,” Obama said. “Just as I suspect the Republican Party may fight to end the middle-class tax cuts that I’ve championed and that they’ve opposed.”
A one time 2 percent cut in the Social Security tax rate in the middle of a recession? That may not be the worst idea in the world. It does put money in people’s pockets and it could stimulate the economy. On the other hand, doing it long-term? That’s a terrible idea, although you’d never know it from hearing liberals lie about the program. Here’s the spin you get,
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