Republicans are cheering tonight 's announcement of compromise by President Obama. The most liberal Democrats are jeering the President for caving in. Most American citizens are probably somewhat pleased.
But can you explain to me why?
Let me dish up some food for thought.
All of the Bush tax cuts will be extended for two (2) more years. The thought behind this is a tax increase of any kind would be a detriment to the economy and every one's pocketbook. True, those in the lower income brackets will benefit from these dollars because they do not have as many discretionary dollars to spend. In fact, many must have these dollars to keep their homes, automobile and even put food on the table. The more liberal Democrats say the wealthy should forfeit their tax relief to support the middle class and lower income cuts. Who won in this tax relief extension?
I am all for no additional taxes. The taxes we pay right now are enough to run our government, if those in government were good stewards of our tax contributions. These extended tax cuts could be permanent if those elected to take care of the people's money would stop the unconstitutional spending, unnecessary programs, fraud and pork.
Yes, all of us got some temporary relief. However, without cuts the deficit will just continue to grow by the billions of dollars.
Unemployment benefits were extended for thirteen (13) months.Almost 2 million unemployed individuals will benefit from this move on January 1, 2011 (these benefits would have stopped after December 31). Another 5 million will be affected over the next year.
Once again, more spending and no cuts. I hope when all of the ink is put on paper there will be some regulations about continued payments to those abusing the system by getting checks without looking for work. The same goes for those who feel they are too good to accept jobs that will not pay the wages they are accustomed to receiving. I believe both of these individuals are thieves who are beating the system.They are using unemployment as their own "bailout package".
Estate tax relief was extended for another year. No taxes will be placed on the first $5 million of an estate; anything above will be taxed at 35%.
I have no problem with this. These assets have already been earned and taxes paid. Personally, I don't think any inheritance should be taxed. Leave it alone. Make it permanent.
The business expense tax break is a good thing. Okay, business owners. Invest the money. Expand. Here's your chance. The same goes for the 2% payroll tax break. Expand, hire, produce good products. Make "Made in America" mean something.
Earned income tax credits and child care tax credits were inevitable.
All in all, it's politics as usual. Nobody won.
How can anyone in Washington say there was a victory in adding another few billion or trillion dollars to the national debt. Without cuts in unnecessary spending, without a solid plan for reducing the deficit, without facing up to their constitutional responsibilities how dare anyone in Washington claim victory.