Obama has caved on tax cuts, and will renew the Bush tax cuts not only for those making over 250k but those making over 1mill. The reason given is that the Republicans would have held up DADT, START, unemployment, and refused to renew the cuts for the middle class and poor.
This is stupid policy from several angles. Politically the Republicans were going to block him on START and DADT. Furthermore those issues are losers, or not cared about, by anybody that’s not already part of the progressive base. There is no reason to value those or think you will get any wiggle room at the cost of the economy. He can also just let all the tax cuts end and then propose one for the middle class and force the Republicans to block a tax cut.
Next, the tax cuts are an economic disaster. The entire Bush tax cuts to all income levels amount to a lot, the share on the rich (only the over 1 mil crowd) cited by the CBO, is 700 billion, so we are losing 700 billion to pay the rich, which is shown to generate cents on the dollar, in exchange for 55 billion to give out in UE benefits, which is shown to return 2 dollars for every dollar. :looney: Furthermore he’s frozen COLA (cost of living allowance) to federal workers to help reduce the deficit.
So if you work for the government, or make under 250k, you just got fucked to give 700 billion in tax cuts to people that make over 1 mil a year, and also to help get votes, that will never happen, on DADT and START (thanks democratic base for pushing those).
He’s already been attacked by the left for the economic impact, but what’s funny is this is so out there retarded conservative democratcs and republicans are calling him out on this, in favor of letting the tax cuts on the rich expire, we are through the looking glass.
It’s a good thing it’s only for two years, well, good if you want to get him out of office. Stupid if he wants to keep it because now taxes will be an issue in 2012.
Politics is fun.