Working Americans shouldn't become collateral damage in some political fight over economic policy

[bigtree]

The President did the right thing. He negotiated to preserve the middle-class portion of the Bush tax cuts which would affect some 98% of Americans. He also made an extension of unemployment benefits, which also affect some tens of millions of Americans, an essential part of the compromise.

Included in the package:

* A two-year extension of all Bush income tax rates.
* Extensions of the Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit, all of which are refundable.
* A 13-month extension of expiring unemployment benefits.
* A two-percent cut in payroll taxes — on the employee side — from 6.2% to 4.2%
* Businesses can write off all new investment expenses for at least next year.
* Reinstating the estate tax (which lapsed completely this year), but starting at estates of $5 million and at 35%. Before the lapse it started at $3.5 million and 45%.

"Allowing taxes to go up for all Americans would raise taxes $3,000 for a typical family," President Obama said in his presentation. Without the compromise, middle-income families would become “collateral damage for political warfare here in Washington,” he said.

I completely agree with that. No matter how we feel about how the politics surrounding these tax breaks has been handled up until this announcement, the fact is that they would have expired without some effort to negotiate a deal with the opposition. That would have resulted in the loss of a couple of thousands of dollars for many families with children who took advantage of the child care credit that would have fallen off in January.

The consequence letting the cuts expire and continuing this debate into the next republican-affected Congress while these families waited for their tax breaks to be somehow restored isn't worth gambling those benefits for the prospect of an uncertain and dubious change of heart from the resisting republican opposition. You either deal to keep them, or you lose them (at least for the foreseeable future).

Republicans will cave and agree to the unemployment benefit extension they were obstructing; they'll cave on preserving the elements of the President's 'Make Work Pay' tax incentives; they'll cave on 'permanent' upper-class tax cuts.

In exchange for allowing them to get their way (temporarily) on continuing the upper-class cuts, the President effectively defended the middle class against the effects of Democrats' diddling around on the tax issue, and against their inability (and voters') to stifle the republican opposition.

[Union Scribe]

1. That seems to be the bullet point of the hour

"You don't care about the unemployed if you don't like this compromise"

It's more than a little disingenuous.

[bigtree]

3. That's not what I said.

I haven't characterized any critic's argument at all here.

[AmericanMan1958]

2. The President has to make the tough decision....

He did just that......Not the popular decision, the tough one.... When millions stand to go hungry, millions more to lose their jobs, every economic gain stands to be lost... You make the tough decision... You put your pride aside....
You don't judge a great leader by the amount of his Army that die in battle.... A great Leader keeps his forces alive to fight another day.
There is one question that remains to be answered.
Will the Army stick with their leader?
Just my opinion,, for what it is worth...

[asdjrocky]

4. LOL, another classic! nt

[bigtree]

5. ridicule isn't an argument

It's just ridicule.

[asdjrocky]

17. And still, in many ways, the most effective nonviolent way for dealing with continuing falsehoods.

Also, a socially effective means of dealing with those who refuse to see the truth. It's been used has a viable means of dissent for centuries against our political posers and those that support them. Graffiti about Cesar, the mocking of Marie Antoinette through puppet shows and street theater, Abbie Hoffman and the yippies, Chevy Chase falling down as Gerald Ford all point to a great and varied history of ridicule being used in the highest order in matters of the most important magnitude.

I challenge your assertion that my ridicule is "just ridicule" as you call it. It is honest, it is forthright, and it is sincere, Also, it's a purely nonviolent form of dissent.

Ridicule, sometimes is not needed, but when it is, it is the safest and most necessary of pressure release valves, and it has great historic value.

Now you have a good day.

[dionysus]

23. you truly are an american hero.

[asdjrocky]

25. Wow.

Thank you. If my mom was still alive I've forward your remark.

[bigtree]

24. it's just another deflection

don't flatter yourself

[asdjrocky]

27. So says the Grand Poobah of Deflection.

On one liners? Not so much, but on deflection, I will bow to your superior knowledge of the tactic.

[Skidmore]

6. Sometimes decency needs to trump ideology.

Of course, that doesn't mean that the opposition can't be indecent.

[griffi94]

7. what happens now with the deficit hawks

since obama caved and gave the gop the extension of the taxcuts for the top 2%, and i believe i readt that the bill for that will be around 60 billion for the next year, will the gop deficit warriors call off the war on ss and medicare.

or is it more likely that those 2 things will be "tweaked" in order to control runaway spending, kind of like the federal wage freeze.

sorry but balancing the budget on the backs of the poor, the elderly, and the working class so the top 2% can continue to hoard the wealth didn't used to be a democratic position.

thank god he signed the lily ledbetter act.

[adigal]

9. LOL!! The repubs pretended to care about jobs!!!

Except they don't care about money for jobless. LOL!!!!

[adigal]

8. What idiots allowed unemployment and tax cuts to be converged??

They never should have been converged so that the Republicans could hijack unemployment. The repub idiots I know don't want to look at this, to see what terrible, soulless thing the republicans just did. Disgusting. They are all gaining themselves some horrible karma.

I need to go meditate or I will pull my hair out.

[bigtree]

12. the unemployment benefit extension was floundering on its own after republicans obstructed it

The president scooped it up and made it an essential part of any compromise on this tax issue, just like riders are added to large bills to ensure they'll advance.

[Confusious]

10. This decision is going to hurt more down the road

Just putting things off to a later date.

Don't take the wrong comparison from this, but if the allies had made a show of force when Germany marched back into the Rhineland, world war 2 might not have happened.

The middle class is going to be paying that 1.4 trillion for the rich.

Shit, why don't we just give them our paychecks right now and start calling them mas'er.

[MrTriumph]

11. It is very clear: SS is the real target. OUT WITH OBAMA!

x

[bigtree]

15. It's clear that some critics are attempting to change the subject

. . . to a dubious hypothetical; all in the ongoing campaign against this Democratic President, I believe.

[TBF]

33. "Dubious hypothetical" is disingenous at best, Social Security is on the table for cutting -

does it have to knock you on the face for you to notice?

[bigtree]

37. It's a non-starter for a sufficient number in Congress

. . . and the President has NOT said a thing about cutting Social Security. Get back to me if he does.

[TBF]

38. He doesn't have to say anything - his actions speak volumes. Who do you think created

that deficit commission.

[bigtree]

40. plenty of presidential commissions have been completely ignored by the founder

. . . and that one couldn't even vote out their recommendations. Weak.

[TBF]

43. Why create a commission with the intention of ignoring it? That's just stupid. nt

[bigtree]

45. It was an idea that originated with a handful of Senators, I believe

. . . and the President embraced the concept and followed through. It's a way to try and generate political momentum, but this one went way off the trail. I fully expect to hear the President campaigning against a few of the provisions that came from the republican side. Both the republican and Democratic participants will use some part of what they spent time on in some legislative effort somewhere, but I don't think this commission will find many Democratic friends in Congress.

[MadHound]

13. So, in exchange for a package of tax cuts, tax credits and a handful of magic bipartisan beans,

We get a thirteen month extension of unemployment benefits.

A very, very poor deal that is going to run up the debt. This will set the table for deficit hawks to come in and cut SS, Medicare and other such programs for the poor and middle class.

Meanwhile, the tax cuts and tax extensions will do little to stimulate the economy and when, just after Christmas next year, unemployment benefits disappear, the poor and middle class will be really screwed while the rich make out like the bandits they are and the national debt will be taken out of our hides.

A very bad deal. We would have been better served if all the tax cuts expired.

[TBF]

34. +infinity. nt

[Subdivisions]

14. How does extension of unemployment benefits affect 200 million Americans? n/t

[bigtree]

16. did I get that wrong?

Isn't that what the President said? I really need a transcript of the remarks.

[BzaDem]

20. The middle class tax rates, the 2% payroll tax cut, the earned income tax credit, and the child tax

credit affect at least 200 million in total.

You can argue that we should take a few thousand out of families of 4 at the poverty line in a recession, but you can't argue that it wouldn't have affected the middle class if they all expired.

[Subdivisions]

30. "Unemployment benefits". That other stuff wasn't even on the table that I know of, excepting

the bush tax cuts for those making under $250,000.

[OhioBlue]

18. K&R - I agree bigtree. I think he did the right thing

although - I would have enjoyed seeing a little more fight on this... the bottom line is we didn't have the votes - especially after the election. We got some good things in this bill - some true stimulus as well.

We didn't make the tax cuts permanent, and we have tools to improve the economy. Hopefully, the economy will turn around, Obama will win big with huge coattails in 2012 and we can eliminate the Bush tax cuts and raise the estate tax and capital gains rates.

[bigtree]

21. god, that sure is a refreshing tone you have

. . . such a rational and measured perspective. You're not from here, are you? (kidding)

[Bluerthanblue]

51. I appreciate your perspective-

anger and frustration are natural.
We all feel it. But we don't need to feed it.

Thanks!

[OhioBlue]

19. self delete - duplicate

[jaxx]

22. Yes, he did do the right thing.

People matter.

[TBF]

26. 2 yr extension on tax breaks for billionaires vs. 13 mos. unemployment extension -

man he can't even get anything when he compromises! This is truly pathetic.

[laughingliberal]

28. +1000 nt

[bigtree]

29. I heard that argued on MSNBC, too

At least the end of the UI extension will come up in his term.

[TBF]

31. I don't watch teevee (except for Glee) - but it's not brain surgery to see that once

again we are screwed.

[bigtree]

32. what's to prevent Democrats from just attaching it as an amendment

. . . to some other major bill?

I do think there's a chance of House members will insist that the upper-income cuts extensions get knocked down to one year. They're still a wild card on this.

[TBF]

42. If that's the case why didn't they just do that this time - rather than

trading away the tax cuts. Give me a break.

[bigtree]

46. preserving the middle-class tax breaks was the primary reason for the deal

. . . the unemployment benefit extension is one of several worthwhile achievements in the agreement.

[TBF]

53. "Several worthwhile achievements"? We got crumbs. Again. nt

[bigtree]

55. more than 'crumbs'

Extensions of the Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit, all of which are refundable.
* A 13-month extension of expiring unemployment benefits.
* A two-percent cut in payroll taxes — on the employee side — from 6.2% to 4.2%
* Businesses can write off all new investment expenses for at least next year.

If Congress can do better, than let them. It's their fuck-up.

[PufPuf23]

48. You continuously state political reality as excuses

and then you come up with this analysis after a wipeout in the midterm to the GOP?

[bigtree]

49. That election had little to do with progressive politics

. . . except to the extent that republicans and republican-leaners exercised their pent-up resentment of our Democratic party and President's political and legislative successes and made a rather predictable rout of the party in power. It's been done before.

[PufPuf23]

57. What political and legislative successes?

Most you list as "wins" are tranfers of wealth in the wrong direction, lies, or movements to preserve the status quo violent empire.

Obama is hurting the Democratic brand and the USA. I want another Democrat (and not HR Clinton) in the WH.

Obama has an integrity not an incompetence problem but some Obama supporters are fools and/or synchopants.

A neo-liberal does not embrace Democratic values.

[bigtree]

58. 'some Obama supporters are fools and/or synchopants'

That's not the basis for a discussion. It's just an nonfactual insult, like associating the President's strategy with a lack of integrity. It's not enough for you to just disagree here, you have to denigrate . . . then you want to be the arbiter of who is a 'Democrat'. So presumptuous of others . . .

[PufPuf23]

59. Do you deny Obama is a neoliberal and

has surrounded himself with neoliberal advisors and enacted neoliberal policy?

I am not a fool now. I was fooled as reflected in my support of Obama in primaries and general. Look at my DU posts.

I am old enough to not be naive and am well educated and a former professional fed, finance sector, and academic.

Let's argue with numbers as far as distribution of wealth and income, financial stimulus, and social justice.

I do doubt Obama's integrity and have said this more than once at DU. I also doubt HR Clinton's integrity. I have voted Democratic in every but one election since legal (McGovern, but campaigned actively in the streets and rallies for Johnson and McCarthy/RFK as a teen before I was a legal vote.) I voted John Anderson (which was a mistake, I do misjudge and learn.).

Is neoliberalism not another form of social Darwinism and economic/power monarchy in effect?

[bigtree]

60. depends on what policy you're talking about

. . . the problem with these labels is that there have been numerous policies, initiatives, and executive actions influenced by and enacted as a result of this presidency, Ideological discussions usually center on a handful of issues, rather than looking objectively through the list of achievements.

So, no, I'm not going to reduce my view of this presidency to a dubious ideological label.

[CakeGrrl]

36. To someone who needs UI benefits to survive, they'll take 13 months over ZERO

Which is what the Republicans voted to give them when they expired.

[TBF]

41. We could have financed a new jobs program with the millions that

would've been collected if the tax cuts had been allowed to expire. Instead we are going deeper in debt to finance the billionaires. Nice work.

[hfojvt]

35. wow look at all the caving Republicans are doing

in Fantasyland. Oh, they are 'caving' on everything except the issue that was actually being fought over - tax cuts for the rich.

Are those not gonna be permanent? How so? Because of the expiration date? Gee, they already had an expiration date, but the can was kicked further down the road. With the tax cuts they are getting for the next two years, rich people will easily have enough money to buy the 2012 elections. Then what happens? If he is re-elected the Jellyfish-in-chief isn't gonna be any sturdier than he is now.

[bigtree]

39. their fight was over those cuts for the wealthy and they mostly did prevail

However, the President's fight was for an extension of the middle-class cuts.

I can't argue all of the name-calling stuff. I leave you to that.

[FrenchieCat]

44. When I think about it.......

The questions that I have to ask the outraged Dems are as follow:

Why is Obama being skewered for insuring that the unemployed get their checks for Christmas,
and that struggling middle class family's taxes don't go up at the worse of times?

Why are Republicans not being reviled; they are the ones who insisted on the rich getting
their tax cuts?

Also, most important....the question of those damning Obama tonight.....
Do they really care MORE about folks with plenty of money regardless of whether
there's a tax cut or not? cause that is what it looks and smells like to me.

Do they truly care about the unemployed who need their checks at Christmas? And if so,
how would they have gotten it that done?

Do They care at all about about the millions of us whose taxes would go up, if all of the cuts
expired? And if so, how would they avoided that?

Do they even think about the millions of middle class folks who will now pay less
in payroll taxes to the tune of 2% of their earnings each paycheck for an entire year?
They don't think that those folks need that break?

Seems like they are more interested in making sure the rich don't get what they've been
getting for two more years, but there doesn't seem to be a concern about those who would have been
shafted by Pres. Obama playing it "Tough".

Tell me....who do the outraged really care about if not for the lesser of thee?

[bigtree]

47. right. Not a lot of concern shown in many arguments here

. . . for the negative consequences of an expiration of the tax cuts on the vast majority of middle-class earning families; families whose incomes average about $50,000 a year. Not enough concern from some for the short-term effects of their economic strategy to undo the upper-income tax cuts by just letting the tax breaks expire or having the President veto any compromise including them. There would be no way to recover them in the next Congress.

[TBF]

52. Regarding outrage, I think I speak for many when I say we are outraged by all of them.

Not just Obama. Not just the republicans. We are tired of millionaire politicians batting us around and using us when it suits their fancy. The outrage is towards all, but yes it is going to be particularly bitter towards a Dem president selling us out because we (wrongly) expected better from him.

[redirish28]

50. Absolutely right!

[mmonk]

54. Or pawns.

[bigtree]

56. no, not pawns either

Is there another way to get tax legislation passed?