The Tax Cut Compromise

You have got to be kidding me!

Whatever happened to the idea of fiscal responsibility? Obama gave in to the Republicans big time in order to get the unemployment extensions that every economist in the country said were going to get the best return on investment. In the meantime, all of the continuing tax cuts for the wealthy demanded by the Republicans are going to provide the worst return on investment.

The Democrats try to do what’s best for the country; the Republicans are only interested in what’s best for Republicans.

I don’t buy the Republican bullshit that the marginal tax rate for the wealthiest citizens is going to negatively impact small businesses because I happen to understand how economics and the tax structure work. It’s the old if the facts aren’t on your side, make up some phony ones and pitch them loud and often to the morons that make up the American electorate.

Even more ridiculous is the reduction in the Social Security payroll tax applied to everyone for 2011. That’s going to cost something like $120 billion in federal revenue.

Here’s the bottom line. We’re not going to be able to dig ourselves out of the current financial hole we’re in by any conceivable economic growth scheme. It’s not going to happen. In other words you can’t get there through tax cuts. The Laffer Curve and Supply Side Economics are total nonsense. What’s required are tax increases and spending cuts with an ultimate objective of reducing the wealth and income disparity that has developed in this country.

That’s reality, and the sooner we recognize it the sooner we can start to get the economy back on a stable footing. If you insist on calling this Socialism, be my guest. It doesn’t change the fact that it’s what’s needed for the economy to really recover.