For the last two weeks almost every ounce of news has be dedicated to this supposed, “compromise,” tax deal between Republicans and Barack Obama. On the surface it doesn’t look half bad since the GOP gets all of the Bush tax rates extended for two years, a reduction in the Estates tax and a 2 percent reduction in the Social Security payroll tax for one year.
Sounds like a win for the people and the GOP and all they had to give up was an extension of unemployment benefits for another 13 months. All in all a pretty good deal which makes the GOP look good and Obama look like he caved, right….WRONG. Republicans need to do everything possible to kill this bill and kill it with a resounding crash loud enough for Americans to see WHY this nightmare is a bad deal.
The first problem is that Barack Obama likes it and so does Bill Clinton. That in itself should send chills down the spine of EVERY conservative. Obama has thrown the entire weight of The White House, (what little there is with him as President), behind it and Clinton came out of Bubba land to not only support it but hit the lights fantastic when Obama surrendered a Presidential presser to Clinton in favor of The White House Christmas party.
The first problem with this, “deal,” is that the left and their more than willing counter parts in the press have continually and successfully managed to call this extension a, “tax cut.” Even the more conservative Fox News refers to it as the, “Bush Tax Cuts,” rather than what it actually is, an extension of already existing tax rates. This labeling has been used by Obama and the left to do two things.
First to whine and complain that the extension will create a huge unneeded tax cut for the rich demonizing those who make over 250 thousand a year and planting in the minds of the uninformed that the left is fighting for the Middle Class and had to cave in to the evil Republicans who only care for Wall Street tycoons and million and billionaires who steal from the poor and middle class that ONLY the left champion.
Second, by calling the extension a tax cut the left has raised an uninformed public’s expectations that if this bill passes then come 2011 and 2012 Americans will see more money in their pockets because their taxes have been cut. To make this illusion possible Obama threw in a little sweetness to the deal in order to dupe Republicans into accepting his deal.
By throwing in the 2 percent cut in Social Security payroll taxes there will be a small but obvious tax decrease in employee checks if this passes which will just add fuel to the fire for the lie that the left is pushing that this extension is a tax cut and not a continuation of existing rates. The uninformed will see the slight increase in their pay checks as a fulfillment of the lefts promised tax cut for the poor and middle class thus even after losing the House Majority giving Obama and his cronies a campaign decree for 2012….”we cut your taxes while Republicans helped the rich.”
Which brings me to the next disaster that this tax deal brings and that is the cut in the Estate Tax. Again a tax cut that on the surface sounds great but in which Obama and the left will use combined with their deception of, “Bush tax cuts,” to demonize the rich to the uninformed and use as a campaign slogan in 2012.
Adding insult to injury with this deal is the fact that Democrats are fighting Obama over it which is nothing more than a ruse to allow Obama to look like he is compromising and giving Democrats the ability to add on millions of dollars of earmarks to the bill before it comes up for a vote. Their, “break,” from Obama is nothing of the kind. They are only using this deception to make themselves again look like the champion of the poor and middle class trying to prevent the evil rich from getting a tax cut while all the while laughing behind every ones back along with Obama who knew his cronies would throw in the Democrat wish list through earmarks which becomes a win, win for Obama and Dems both.
Democrats get their pet projects like a tax credit for Ethanol production while demonizing the rich and Republicans with Obama getting credit for compromising which he claimed in 2008 he would do in order to bring peace to Washington DC and he goes into the New Year and a new Congress looking like he is willing to work with Republicans. Which of course he most certainly is not because being the ideologue that he is will prevent him from changing his stripes. But since he has compromised this one time he can say until 2012 that he could not work with Republicans like he did on the tax bill because THEY refused to deal.
The left has also created the illusion that extending the Bush rates will add to the deficit which is something that even informed Americans are concerned about. If one would just take a moment and think, extending already existing tax rates CANNOT add to the deficit because there is no reduction in tax revenue IF future budget projections are based on the current tax rates.
Now here is where the Democrats have once again deceived the American people. The ONLY way extending the rates will add to the deficit is if the tax increase that would take place if the rates were allowed to expire was factored into budget projections and spent, THEN if the rates are extended it would raise the deficit since the additional revenue from an increased tax rate was already spent.
Democrats and especially Obama never dreamed as they were making budget projections that they would lose Congressional majorities as they have. If they kept control of the House as they had expected they would just allow the Bush rates to expire without fanfare, raising taxes and providing Democrats with more money to throw away on socialist projects. But the American people fooled them and voted Democrats out.
The extension never became an issue until AFTER it seemed as if Democrats could lose the House well before the election and the GOP used it as a campaign issue. Then and only then did Obama and Democrats suggest extending rates for those who earned below 250 thousand, which kept them popular with their leftist base and provided them an out with the extension if they kept the majority and let them expire. All they had to do was explain it away by saying allowing the rates to expire forced the rich to pay their fair share and presto, Democrats had their additional money for their socialist projects.
But they lost the House and now must cover their butts by claiming the rates are in actuality tax cuts for the rich and use a deceptive deal to get as many pet tax projects passed before Republicans take over in January. So what must the GOP do to get out of the corner Obama and Democrats have placed them in ?
First back away from the deal using the earmarks as a legitimate deal busting reason and state loudly and publicly that they will ONLY accept an up or down vote for JUST the extension of ALL rates and nothing else in the deal package. Democrats will of course balk at this and the bill will die a quick death as the lame duck session runs out of time to deal with it in 2010.
Then once the GOP takes control extend the rates permanently retroactive to January first forcing Obama to either accept a permanent tax rate or VETO allowing the largest tax hike in history which will be his sole responsibility. A two year extension does nothing more but make this a campaign issue in 2012 where Obama can claim he compromised and the , “tax cuts,” didn’t stimulate the economy, which they can’t because they change nothing, and claim Republicans sacrificed the middle class for the sake of the rich.
Next the GOP can create legislation reduces rates even lower combining this with real and drastic spending cuts which will reduce the size of government while stimulating the economy as even lower rates will increase consumer spending and confidence while reducing the deficit which too will stimulate the economy. Of course this is only a beginning but it will shut the left up as the economy improves due to REAL tax and spending cuts and Obama and his cronies will not have a created issue in which to demonize the rich and the GOP in 2012.
Ken Taylor The Liberal Lie, The Conservative Truth