If Barack Obama had his way, taxes would be up across the board. Most obviously for the job creators in the form of higher marginal income tax rates, but also for everyone in the form of a health care mandate, energy taxes, increases in capital gains and dividend taxes, and various regulatory costs (such as cap-and-trade) passed on to consumers.
Against Obama’s will, Republicans have forced Obama to become a tax cutter, as the cost of not raising taxes on job creators and investors.
The “framework” of the deal to prevent Obama from getting his wish to raise taxes includes some modest tax breaks for middle-income earners, such as a temporary decrease in payroll taxes (i.e., social security). These tax decreases were Obama’s idea, to justify why he caved in to the Republicans.
The fact that Obama was brought to cutting taxes kicking and screaming will be forgotten. The fact that Obama didn’t really want any tax decreases but only used them as a face-saving device will be forgotten.
Obama has grabbed the mantle of tax cutter.
All in all, I think Obama had a pretty good day.
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Comments
Hardly, the tax cut only remain til 2012-13, so it be a campaign issue. Obama will be campaigning on letting it expire because the economy will still be in bad shape
The plot thickens.
Sen. Dick Durbin, who voted for the Deficit Commission's recommendations, has already said Democrats could "walk out."
http://www.businessinsider.com/durbain-says-democrats-could-walk-out-on-tax-deal-2010-12#ixzz17R9ioZXJ
Krugman, for what it's worth, on Obama and the tax cuts
"Since all the evidence says that elections depend on the rate of change of unemployment, not its level, this is actually bad news for Obama: he’s setting himself up for an economic stall in the months leading into the 2012 election.
Oh, and he’s overpromising again:"
http://krugman.blogs.nytimes.com/2010/12/07/the-deal/
I don't think the payroll holiday was his idea either: remember that his idea of stimulus is throwing more money at public sector unions. It was REPUBLICANS who originally proposed a payroll tax holiday in **2009** when the ORIGINAL stimulus was passed.
Basically Obama just ceded the argument over Porkulus to the Republicans by abandoning spending in favor of a payroll tax holiday. The Republicans can say "The president has FINALLY seen the light 2 years too late…."
Nothing has actually happened yet. So they reached a deal. Whoop-dee-do. Wake me when they take an actual vote. If the Dems in Congress block this thing, Obama gets to lamely say that he tried but those mean old Republicans blocked it — except they didn't.
An interesting Catch 22. Will the Dems refuse to pass the tax cut deal? Will they scuttle payroll tax relief, tax cuts, UI extension, Obama era tax relief, AMT relief over "fairness" or redistributive class warfare?
http://www.mcclatchydc.com/2010/12/06/104818/democrats-could-scuttle-obama.html
"John Larson: President's tax plan "Very difficult" for Dem House members."
"Dem House leadership will meet at 2:30 this pm to talk taxes."
"Tax Drama Builds, As Steny Hoyer Says House Dems Have Not Agreed To Deal"
http://www.businessinsider.com/steny-hower-says-no-deal-on-taxes-2010-12#ixzz17RlacdLX
I wonder if the Republican House will get Obama reelected.
Of course the Republican House has not yet been seated and the current deal, whether or not it passes, is just a single indicator.
If the deal doesn't pass, the outgoing Democrats' final act, in effect, will be a decision to raise taxes. That's not what I'd want to campaign on in 2012 if the economy remains wobbly.
If this passes then the GOP has a ready issue in 2012: The only way to guarantee that these rates will continue is to give us control of the Senate and the White House in addition to the House.
If it doesn't then the new Republican House should pass an extension without the Dem sweeteners and let the Dems vote it down again. Then they should try again in the middle of 2012 just before the elections.
The libs are all mad because of what? A mere two years extension of the current tax code (incorrectly termed by far too many as a "tax cut")? A tiny 2% reduction in payroll taxes?
Look what they get in return: 15 more months of unemployment benefits (the slackers of the world rejoice, 15 months vacation!) and the return of the idiotic estate tax.
If the left are upset, then that just shows how far left they have gone.
As to Obama, a good day? He acted like a jacka$$ attacking any and everyone. And why would people forget his two years of "progressive" rhetoric and his shoveling of ObamaCare on everyone because of just one day?
4rc is right. As the president himself said today, he'll be fighting to reinstate the old tax code over the next two years. In 2012, as a way to hold off any primary challengers at least, he'll be campaigning on letting the cuts expire, whether they work or not; and his Republican challenger will be touting them.