Putting the TARP Band Back Together
Opinions are varied and divided over whether the tax compromise plan is worthwhile. Some see it as the best the GOP can hope to get. Others see it as the GOP settling for keeping current income tax rates while voting to raise other taxes and increase spending on unemployment benefits, a program that has become a general welfare program.Whether you are for it or against it, I do think it is worth pointing out this morning that with few exceptions, those parties advocating the tax compromise are precisely the same parties who advocated TARP.Last time, they told us we were going to have a Second Great Depression if we did not pass TARP. This time they tell us we will have a Double Dip Recession if we don’t pass the tax compromise.But pay attention here to one key point.It is the GOP that has been advocating all along that we keep current tax rates steady and it has been the Democrats advocating a tax increase. The GOP, in compromising, is not getting a tax cut. The GOP is getting the status quo.I’m still having a hard time figuring out why the GOP needs to compromise just to keep the status quo on the income tax, while see other taxes and spending increase.