Monday, December 06, 2010

NO! NO! NO!

The news is that Obama has capitulated to the Republicans, agreeing to extend tax cuts for the richest people in the country, take a pittance for unemployment, and actually cut funding for the Social Security Trust Fund.

The stated rationale for the tax cut proposal is that the tax cuts proposed and implemented by George W. Bush in 2001 are needed to create jobs. Uh-huh. The jobs we've been seeing for the last ten years under the tax policies in existence right now?

Yes, that's what they're saying.

What we do know is that the actual motivation for the R's is to make sure the richest people in the country continue to reap mind-boggling incomes and mind-boggling tax cuts.

And they'll screw the whole country to do it.

So here are a few facts about this "deal":

1. If the current tax rates were what we need to create jobs they'd be creating jobs right now, but they're not.
2. American corporations are sitting on unprecedented supplies of cash, and they don't need tax cuts to get enough money to hire more workers. They're not going to hire more workers until they think economic conditions will support them.
3. The real job creators are the people who spend their money. That especially means the people on unemployment, who spend every dime they get, and for this reason every dollar spent in unemployment benefits creates $1.61 in economic activity, better than almost every other mechanism for economic stimulus.
4. The deal includes a cut in the "payroll tax". The people who have been attacking Social Security since the 1930's, and supported Bush's plan to kill the program off by privatizing it, were able to get Obama to agree to a cut in the payroll tax. This means that every Republican's argument that Social Security is headed toward bankruptcy just got a little stronger.

No more negotiating with terrorists. Call your congressional delegation and tell them to vote no on the tax cut extension.

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