Saturday, December 4, 2010

Tax cuts for all!

Today two measures to pass tax cuts failed to pass in the senate. The first for those making under 250,000 and the second for those making under 1 million. I find it amusing that after Republicans vow to block all legislation till tax cuts are passed, yet they still fail to do anything about tax cuts when the time comes. And they complain about Democrats' lack of bipartisanship. They haven't done much in the last 2 years to compromise so why should they now? Their reasoning is that we cannot raise taxes on anyone in this economy and that tax cuts for the wealthy will help create jobs, but is that true?
According to CNN:  "Several economic studies have indicated that the wealthiest people -- the top three percent who make more than $250,000 per year -- are more likely to invest tax cuts in stocks or other assets than to create jobs."
When you think about it, rich people don't just create jobs because they have the money, they create jobs because the demand is there. And the demand to create jobs depends on people buying more stuff. So tax cuts for the middle class make a little more sense since they are a larger part of the population that is likely to buy stuff. I find it doubtful that the top 2% can compare with that. They would have to spend a shit load to compete with that and I doubt they became rich by wasting money.
It should also be noted that tax cuts for everyone will add 4 trillion to the deficeit. Tax cuts for 250,000 and below would still add 3 trillion. Republicans put out alot of rhetoric on cutting deficiet spending yet they want to keep adding on to it with these tax cuts. And it should be of note that they don't want to extend unemployment benefits since that would add to the deficeit as well. Jobless benefits must be paid for but apperantly the same isn't true for the wealthy tax cuts, who I'm sure are not having a problem putting food on the table. The unemployed are likely to spend what they get because they need it just to get by. That equates to people buying stuff, which we need to help the economy. So I'm more then confused by what the Republicans are trying to accomplish. But not totally surprised since those on unemployment benefits probably don't vote Republican, while those making more then 250,000 probably do. They also keep saying that American's want tax cuts for everyone, but recent polls show a majority against tax cuts for the rich.
So what's likely to happen? If history has taught us anything the Democrats will fall apart and then the Republicans will get what they want. But is there a more sinister motive here? This looks like a move to force cuts to programs favored by Democrats and possibly even destroy the democratic base. When Republicans take control I'm sure they'll do their best to cut "over liberal" programs all in the name of reducing the deficeit and creating a smaller government. That would further weaken the base and alienate Democratic voters. Newt Gingrich himself said he wants to replace the left. Not that people like him care about what liberals want. He did equate them with terrorists in trying to destroy America. Maybe he should look in the mirror. But I'll bet someone like him can't possible imagine that America was formed with anything other then an Ultra-Conservatist agenda.

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