(That is from the second Indian Jones movie)
In his surprise concession to “Republicans”, Mr. Obama has given back (?) some and taken more.
The key to this last round of TAX negotiations is simple.
Put off the problem until 2012. Significant? You bet!
What did he do.
1 – he is giving more money to those who don’t pay tax. A new Tax Rebate, no need to purchase.
2 – he gave the Republicrats an extension out to 2012 to not raise taxes on anyone.
3 – he increased the death tax on estates more than $5 million.
4 – he reduced the SS tax by 2%
OK, looks good at first blush, but really, what is going on here.
He has given the RepubliCrats the stick with which he will beat them to death with.
In 2012 he will be sure to note that it is because of the Republicans that the taxes are increasing for all wage earners. If you will, all classes of income. And he will clearly note that the Republicans had the chance to lock into low rates forever, but they refused to play ball
Another strong note to be played during the campaigns will be that the deficit will be much greater because the Republicans allowed SS tax revenue to fall while pay outs increased. Also noting that SS payouts will be drastically reduced based on the lower collections of the previous years.
He will be sure to let all the countries dependants (those “gold bricks” who will have been on Unemployment for over 3 years) that they are getting their checks, not because of the Republicans, but in spite of them. It was only through his great negotiating that they are still capable of getting a paycheck for doing absolutely nothing.
All in all, Obama won. He gave the Wimpy Republicrats only what he knew would be a valuable tool later. And they took it “hook, line and sinker”. They gave away the store, and received the rope which will soon be the noose around their necks.
The only hope is that the new kids on the block, the Constitutional Conservatives will straighten out the warped, old man, good ol’ boy, you scratch my back I’ll scratch yours thinking of the present congressional Republicans.