Posted by
Bert Chapman on Thursday, December 09, 2010 8:48:29 PM
The proposed tax deal between the Obama Administration and congressional Republicans has received a mixed reception. Some Republicans are concerned that the deal only lasts two years and will increase the budget deficit. Many of the virulent leftists in Obama's Democratic ranks are aghast that the 2001 Bush tax cuts may survive and have instinctively reverted to their class warfare rhetoric. I think that this agreement, though far from perfect, has more good than bad and support it. I would prefer the Bush tax cuts be made permanent but am cautiously pleased that the Obama Administration is partially cognizant of last month's election results. The last thing this struggling economy needs is massive tax increases which would surely plunge us into a double dip recession. I'm not thrilled about the extension of unemployment benefits as this encourages a dependency mentality but hope that extension of the tax cuts to all consumers will help create more jobs. History also shows that increased economic activity also produces higher tax revenues.
This was hard for Obama whose economic ideological proclivity is to tax, spend, and redistribute. He demonstrated a modicum of intelligence and pragmatism by recognizing the upcoming Republican House takeover and the GOP's augmented Senate numbers. However, he was petulant at his press conference as demonstrated by his bizarre claim that tax cuts for the rich are the GOP's "holy grail." Actually, our highest economic ideal as conservatives should be a government that balances its budgets, has efficient programs, and facilities long-term economic growth by minimizing its intrusion into personal and societal economic activity.
It's especially amusing to see the economic illiterates among congressional Democrats. It's a sad commentary on American economic educational quality, particularly prevalent in many sectors of academe, that the belief persists that you can tax and spend your way to prosperity. Actually, it takes personal prudence, saving, timing, advance planning, and providential fortune to achieve and maintain personal prosperity. In the spirit of Jonathan Swift's "A Modest Proposal," I would like to make the following suggestion to critics of this proposed tax legislation. If you really want to see the 2001 Bush tax cuts expire, pay the income tax rate for your income level that existed prior to these cuts being enacted when you fill our your tax returns next year. You can call it your "patriotic sacrifice" in your own warped leftist world view if it makes you feel better. Let the rest of us who are trying to make our economy better have the freedom to plan our economic activity more effectively by allowing this legislation to pass. Then we can begin the hard task of reducing government spending including making tough cuts in entitlement programs, duplicative and wasteful government programs, and even some areas of defense that are the major cause of our fiscal malaise.