Obama-GOP Tax Cut Bill Turning Into ‘Christmas Tree’ Tinseled With Gifts For Lobbyists, Lawmakers
This deal has turned into just about everything that the last election protested. Secret deals, buying votes, huge deficit spending.
Extending UI benefits has a positive stimulative effect. Tax breaks for the middle class, positive but less efficient. The SS holiday is a dangerously slippery slope. The rest is unstimulative and unaffordable.
The economy will never recover as long as the tax breaks for the rich remain in place. They just drain too much money out of the economy with very little return. 2/3 of the economy is consumption-driven, and not enough money is getting back to consumers to sustain it’s growth.
Middle class workers have not shared the benefits of increased productivity, which has been used to keep job creation low. The middle class has lost a tremendous amount of wealth in the housing bubble, lost retirement money, and been forced to compete on wages with workers in third-world or emerging economies.
The job creators have all the money they need to start hiring. What they lack is customers. They are waiting for the people they have shorted to start spending money they no longer have. Government stimulus spending is the usual way to break that gridlock, but the effort has been undermined and that well is tapped dry.
Tax cuts for the rich haven’t created jobs, and restoring those rates will not hurt job creation as much as conservatives claim.
This plan may seem like good politics, but it also seems like bad economics.
Read the Article at HuffingtonPost
- Come Saturday Morning: Reasons to Fight the Obama/GOP Poor Tax (firedoglake.com)
- Obama Launches a Vigorous Defense of His Tax Agreement (dailyfinance.com)
- The dirty little tax cut Obama signed off on By Jerry Mazza (dandelionsalad.wordpress.com)
- Merry Christmas, Lobbyists- From Your Friends in Congress and the Taxpayers They Rob (zwingliusredivivus.wordpress.com)
- I Didn’t Vote For A Christmas Tree (powerlineblog.com)
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