Warning!!! I’ve tried to make a serious and informative comment in this post considering the proposition that everyone is entitled to my opinion. It really is serious so you might as well skip it.
On average the majority of working people received a very small tax cut. It is true all of our paychecks would have been smaller had the cuts not been extended. But what better way to save and create jobs than by increasing revenue and government activity.Tax cuts don’t create jobs. Only investment in plant and equipment will do that. The Bush tax cuts were the largest in history. If tax cuts create jobs, where are all the jobs? I think we know the answer to that question.
Einstein once said that to do the same thing over and over and expect a different outcome is insanity. The reasonable expectation from these latest supply side cuts has to be there will be little or no job creation. To think otherwise validates Einstein’s comment.
Moreover, the payroll tax cut is very likely a Trojan horse that working men and women will pay for many times over. It represents another Obama sneak attack on Social Security which this president is determined to cut.
Small businesses can indeed be a job creation engine. But let’s be realistic. Small business cannot create nearly the number of jobs needed to reverse the decline in the US economy. And many of those jobs are in the service and retail industries and of the the minimum wage, no benefit variety. So while tax cuts for small business are useful, they will not recharge the economy.
The amateur Machiavellis in the White House and Congress are hatching plots to further diminish the prosperity of the average worker. Obama agreed to the extension of the cuts into 2012 knowing that the likelihood they will be made permanent is near certain. In exchange he got a thirteen month extension in unemployment benefits for those who are eligible. Why not two years for a stimulus program that is far better than tax cuts??? Obama, for a reason, will allow UI benefits to expire in about a year.
What is that reason? Part of Obama’s Faustian bargain with the GOP was to exchange permanent tax cuts and end UI benefits along with Social Security cuts not yet announced for shaking loose a few Republican votes on START and DADT and ending the Republican blockade on judicial nominations.
The millionaire media has hailed the deal as a success for Obama and proclaimed the outcome the president’s Renaissance. Nothing could be farther from the truth.
We’ve been had big time yet again. And for this Faustian bargain, the workers of this country will pay dearly for decades to come.