Pundit and perpetually dour Travelocity Gnome Charles Krauthammer, took to his token WaPo seat today to inform the world that the Compromiser-in-Chief really hornswoggled those waskly Republiwabbits with his captiulation compromise on the Bush tax cuts. A plan so clever that Obama, Democrats, and apparently judging by their reactions, Republicans too, are just too dim to see.
Yup Chuck, that wiley old Kenyan socialist has ‘em right where he wants ‘em now!
According to the Great and Glorious Oz-Hammer, Obama tricked Republicans into what the Wall St. Journal calls, “a second, stealth stimulus package” worth a $1 trillion by agreeing to tax cuts for all and extra money for those not lucky enough to be unemployed corporate titans.
Psst…don’t tell anyone that many economists see the tax cuts for the wealthy as making up the lion’s share of the trillion and providing the least stimulus – unless by stimulus you mean stimulus for yacht and corporate jet makers.
Oh wait! The wealthy already get private jet service as part of their measly compensation packages. Silly me!
Alienating Voters for Fun and Profit
Obama gave up his objection to tax cuts for the rich – before negotiations even started – in exchange for tax cuts for everyone and unemployment money the Republicans didn’t care a whit about anyway – except to the extent that the have nots would’ve been momentarily pissed if they got nothing.
Now here’s the genius of Barack Machiavelli’s plan. Give the Republicans what they really want (tax cuts for the rich) in exchange for letting them off the hook for their most outrageous and politically embarrassing proposals (no middle class cuts and unemployment continuation).
Then, kick the can down the road so that Republicans will be in power and more easily able to strip the tax cuts down to only those for the More Money Than God tax bracket while pummeling Obama with accusations that those budget-busting middle class tax cuts and extended unemployment benefits just ruined the economy. Ruined I say!
If the Republicans gave a crap about their constituents – other than their corporate donors I mean – the unemployment extension shouldn’t have needed to be negotiated. It was a worthless bargaining chip as far as the Republicans were concerned, “Let the little people have their crumbs. Pass the $5,000 per ounce caviar Mr. Halliburton.”
As for middle class taxpayers it’s not such a ‘victory’ either. The deal could raise taxes for 1-in-3 workers. And as usual, the working poor get bupkis. The Obamicans giveth with one hand and taketh away with the other.
Lighting $100 Cigars with $100 Bills
The Bush tax cuts were passed during the period of the inflating bubble. The corporate titans could light $100 cigars with $100 bills worth $200. Middle class folks could buy homes well-beyond their means with money loaned by banks engaged in the world’s largest 3-card monty game. Most everybody, except those losing their jobs to offshoring, was working. And, we were flush enough to finance two wars – creating much of the deficit Obama inherited – “off the budget books”.
There’s an old fable that makes too much sense to possibly be true. To balance a budget you have to have more coming in than you have going out. But when your economy is built with all the stability of a Jenga game on quicksand you won’t be able to do it quickly. The economy took a long time to get so thoroughly and royally hosed.
It’ll take sacrifice and austerity by EVERYONE – yes Robber Barons and your super-citizen corporations, this means you. It also means middle class folks who won’t like to bite the bullet, but guano happens. The poor aren’t generally paying taxes anyway because the tax on zero is, oddly enough, zero.
The truly fiscally responsible way would’ve been to give no tax cuts to anyone. The rich and middle class are where the money is and are best equipped to weather the storm, even if income disparity is as equal as an elephant on the other side of a scale from a squirrel. Not a popular solution, but everyone suffers equally, if not proportionately, and the treasury is that much closer to getting more coming in than going out.
As for the extension of unemployment benefits, pass them independent of any deals. The politicians have shafted these people quite enough already, giving them a break is the least they could do. At least that money will be spent on something useful, like keeping a roof over the unemployed’s heads and food on the table. It’ll cost a little, but not as much as the cuts.
Rich folks, and those who ride their ample coattails, I know it’s tough to forgo that yacht the size of an aircraft carrier, but come on. Dig deep. Get the holiday Christmas spirit. Middle classers, you’ll have to suck it up as you always do. That sucks, but it is the way of capitalism – greed always wins.
The Republicans don’t give a damn what the electorate thinks of them. The Democrats are more disorganized than a herd of feral cats. And Barack…poor, poor Barack…got his feelings hurt because he’s become mono-partisan – that special state of grace where everyone – left, right, and center – thinks you’re an incompetent boob.
No more negotiating. No one ever negotiates anything that’s good for the country and it just depresses the hell out of the rest of us.
- Tax Cuts Deal: Sympathy for the President (politicsdaily.com)
- Obama Launches a Vigorous Defense of His Tax Agreement (dailyfinance.com)
- A model of consistency (washingtonmonthly.com)
- More on the Tax Deal (baselinescenario.com)
- Special Comment: Taxes, Blackmail, Bullies, the 99′ers — and Presidential Timidity (crooksandliars.com)
- Bob Burnett: Barack Obama: Negotiating With Vipers (huffingtonpost.com)
- The ticking bomb of the tax cut “compromise” (dailykos.com)
- Economy: A Taxing Decision (ynative77.wordpress.com)
- Obama offends Krauthammer (zompist.wordpress.com)
- Has Obama taken the Republicans for a ride? (blogs.telegraph.co.uk)
- Obama-GOP Tax Cut Deal on the Rocks (politics.usnews.com)