Obama's a Sell-Out on Taxes? Not So Fast (Meeropol in The Nation)

[jefferson_dem]

(edited for copyright purposes-proud patriot Moderator Democratic Underground)

Obama's a Sell-Out on Taxes? Not So Fast
Michael Meeropol | December 8, 2010

Now that President Obama reached a deal with Republicans to extend all of the Bush tax cuts for two years and significantly lower the Estate Tax, I’m finding myself in a strange position for a progressive economist. I’m pleasantly surprised at how much he (and therefore the people of this country) has gained in exchange for what many were calling an abject surrender. After all, he got Republicans to agree to an extension of unemployment insurance, a payroll tax holiday and (amazingly) an expansion of the earned income tax credit (EITC). Remember what that program does: if you are a low-income worker and you don’t make enough to pay income tax, you actually get a check from the government. The right wing has consistently attacked the EITC as a welfare entitlement and yet there they were, agreeing to its expansion.

It is certainly true that on the grounds of fairness in our tax policy and good economics, the part of the deal that extends the Bush income tax cuts for the top 2 percent of the population, and cuts the estate tax permanently, is just plain bad. Every dollar spent cutting income taxes from 39.6 percent to 35 percent for those making over $250,000 a year as well as the unconscionable gift to millionaires and billionaires with the cut in the Estate Tax, could be much better spent helping states avoid deep spending and service cuts.

However, Republicans had made clear that they were willing to let all tax cuts expire and refuse to do anything meaningful to help the unemployed unless millionaires got an extension of the Bush tax cuts. So the choice for the President was to let all the tax cuts expire and fail to get unemployment benefits extended or to do something that would preserve some of what most economists believe the economy needs: that is, extending unemployment benefits for the next 13 months, the cut in payroll taxes and expansion of the earned income tax credit.

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http://www.thenation.com/article/156953/obamas-sell-out-taxes-not-so-fast

[Vinnie From Indy]

1. Again, Obama apologists use the same tired lie to defend this deal

The OP writes,

"Republicans had made clear that they were willing to let all tax cuts expire and refuse to do anything meaningful to help the unemployed unless millionaires got an extension of the Bush tax cuts. So the choice for the President was to let all the tax cuts expire and fail to get unemployment benefits extended or to do something that would preserve some of what most economists believe the economy needs: that is, extending unemployment benefits for the next 13 months, the cut in payroll taxes and expansion of the earned income tax credit."

This is the most overworked and untrue aspect of this discussion. Obama clearly had more than two choices. I would offer that he had many choices on how to deal with the tax issue. He could have made the GOP publicly fight for millionaires and billionaires and STILL come back to this shitty compromise. As it stands now, the mean ol'GOP bullies raised their fist and Obama gave up the milk money.

[DemocratSinceBirth]

2. Americans Knew The Republicans Were In The Pocket Of The Powerful

Americans knew Republicans were in the pockets of the powerful when they rewarded them with the biggest mid term victory in over s century.

[frazzled]

3. The estate tax rate is not permanent: it's also only two years

as I understand it. Although raising it will not be easy.

[lamp_shade]

4. It is becoming more evident by the day that most Americans believe he did the Right Thing.