Posts Tagged ‘Bush tax cuts’

Obama’s grand coup: his tax compromise bolsters the middle class, extends unemployment benefits, and stimulates the economy

December 8, 2010


The White House calls it the Tax Agreement on Economic Expansion and Job Growth. Keith Olbermann likens it to the sell out to the Nazis at Munich.  Bill O‘Reilly says “Good for President Obama.” What’s going on?

Just this: many Republicans have such an intense lust for tax breaks for billionaires that to get them they gave Obama all he could dream of asking for in the way of tax breaks for the poor and the middle class, and for government stimulus for the economy.

Meanwhile many Democrats have such rage over the tax breaks for billionaires that it spills over to Obama, who agreed to it, even though he picked the Republicans’ pockets and increases his and his fellow Dems chances for 2012.

Here’s what Obama gave to the Republicans:

· extension of the Bush tax cuts for everybody. He wanted to extend the breaks for only those earning under $250,000 per year; the Republicans wanted it for all.

· A smaller estate tax increase than they were demanding

Here’s what he got for his agenda:

· The middle class tax cuts that were the centerpiece of his tax policy

· An extension of unemployment benefits for 13 months, averting the loss of benefits to 2 million workers in December alone, and protecting benefits for up to an additional 7 million workers over the next year.

· A reduction of up to $2100 in payroll (Social Security) taxes (more…)


One-term Obama can bring effective and ethical government to Washington

December 2, 2010

Barack Obama ran for President on a platform of hope and change. While he’s delivered a lot of big things—saving the economy, delivering near-universal health care, beginning to restore America’s reputation abroad, and beginning an end to two wars—he hasn’t begun to change the ways of Washington. His latest attempt lasted only a few hours, before the Republican leadership announced its determination to stop everything unless it got what it demanded in the form of a $700 billion tax break for the rich and super rich.

So what’s an ethical President to do when his attempts at compromise and progress are blocked by House minority leader John Boehner and Senate minority leader Mitch McConnell, who announced on the eve of the 2010 election, ‘The single most important thing we want to achieve is for President Obama to be a one-term President.”

More important than the managing the budget crisis, more important than ratifying the START Treaty with Russia, more important than reducing the obscenely high unemployment rate, even more important than tax relief for billionaires!

The answer for the President is staring right at him: give McConnell what he wants most of all, in return for the change Obama promised. Here’s how this grand compromise might work: Obama promises not to run for re-election. In exchange McConnell and Boehner promise to work with the Democratic leadership to achieve:

  • Long-term deficit reduction equivalent to that in the report of the bipartisan deficit commission
  • An economic package, including extension of the Bush tax cuts for (more…)