Thursday, November 18, 2010

Fate of Bush Tax Cuts Still Uncertain

Fate of Bush Tax Cuts Still Uncertain
By Jillian Bandes

Democrats are digging in their heels. Republicans are refusing to compromise. What's going to happen to the extension of the Bush tax cuts, which must be addressed before Congress goes home for winter break?

Right now, it's a stalemate. Rep. Paul Ryan, Wisconsin's fiscal dreamboat, has declared that anything other than a full extension of the tax cuts for every American will be blocked by Congressional Republicans. That's backed up by Speaker-elect John Boehner's statement this afternoon, via his spokesman Michael Steel:

We made a pledge to America to permanently stop all of the tax hikes. That's what we'll fight for.

Sen. Mitch McConnell agrees, partnering up with Sen. Jim DeMint to insist that it really is all-or-nothing. Democrats are now in a frenzy. They can't let the tax cuts expire without doing anything, but they also can't stomach the idea that tax cuts will be given to the rich under their watch. They also know if they simply sit back and let the cuts expire for everyone, they'll be doing precisely what got them voted out of office three weeks ago.

Both Pelosi and Reid have laid the law down during a conference call on Monday, saying that they won't make a move until Obama tells them what to do. Unfortunately, that's not working out so well for them. Politico:

Obama’s repeated insistence that he would drive the hardest possible bargain – while signaling his openness to a compromise that includes a temporary extension for high-income taxpayers — has angered some in his party who claim he’s weakening Democrats’ efforts to force concessions from Republicans.

“Give us the playbook – or even an inkling of what you want to do and how you want to do it,” said one congressional Democrat involved in crafting the tax-cut strategy.

In 2003 these were tax cuts. Since they have been around since then they are "normal", they are ingrained. To take them away now (let them expire) would have the effect of being a "tax increase" on everyone - there is absolutely no two ways about it here. So what we have here is the Republicans want no tax increases, and the Democrats want to increase the taxes for the rich only (which includes most small business owners). Anyone with the least bit of sense should know by now that these tax increase are just passed on to the consumer (us). So it would be a tax increase for us. So nothing has changed - the Democrats still want to tax us anyway they can, which is the main reason they were voted out in the last elections. Myself I voted them out because they are on the wrong side of every single issue imaginable.

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