The unrecognized brilliance of the Bush taxcuts..

[kentuck]

I doubt Republicans knew at the time of their passage the hold they would have on both political Parties.

However, over time, they became more and more necessary for the survival of the poor and middle class.

The last ten years have not been good for workers at the bottom. Wages have lost ground across the board as the wealthy and Wall Street have feasted.

But, in hindsight, they were a brilliant political move.

How difficult will it be to let them expire? Even if the economy is much improved two years from now, it will be very difficult for any politician to vote to allow the taxes to go up on the working and middle class. It will become more difficult, not less. Nobody wants to pay more in taxes, especially those at the lower end of the wage spectrum.

The fact that they did not perform as they were promised to do makes them even more valuable and important to those struggling to make ends meet. They have successfully checkmated the Democratic Party. Reaganomics and taxcuts have not only won the day, they have won the war.

The Democrats cut their own throat by not letting these cuts expire as scheduled. Two years from now, it will be a cross so heavy to bear, that no Democrat in a tight race will support letting the taxcuts expire, thus causing a new tax burden on every worker in America. That is political reality they will be facing.

Barack Obama will still have his veto pen but even a veto can be over-ridden. It's hard to feel sorry for anyone that makes their beds out of sticks and stones.

Can anyone envision a situation where the taxcuts will not be a political liability for the Democratic Party?

[msongs]

1. hey they were approved and endorsed by two republican loving presidents lol nt

[Astrad]

2. Mass layoffs in State governments

and the consequent crippling of public services could make defending the tax cuts (at least for the rich) politically risky. If the Democrats can tie these events directly to the tax cuts that is.

[RandomThoughts]

3. You use a comment out of context.

'make their beds out of sticks and stones' That is usually a reference to name calling. More obscurely it could be a reference of idols.

How does that apply to the context of your posts.

[bluerum]

4. This neglects thr fact that the government has bonds to make good on. They NEED tax revenue

to pay off debt, bankroll the military and run the country in general.

Right now the government is selling bonds hand over fist to keep things running. And here is the real kick in the ass. Corporations - investment banks and wealthy investors, are able to borrow money from the fed (in the name of stimulating the economy) at near 0%. They buy federal bonds then they turn around and sell them and cash in on the difference between the bond yield and the 0% loan. Oh, they may pay a few percent in taxes on the gains, but we, as taxpayers are responsible for the debt. For making good on the bonds.

So. The government is now in a position where it HAS to sell bonds. I just hope that China does not become the majority bondholder.

[corpseratemedia]

5. now I thought on another post you were saying that the economy will worsen, but you actually think i

will improve enough so that there is no way for rank and file americans to want to see the tax cuts gone? Is that what you're saying? (Sorry, I am having actual growing neurological problems).

My theory is, is that no, it will not help the economy at all, we will end up at the second steeper dip of a double dip recession, this time because there is no revenue, havine MASSIVE cuts in the safety net and commons (libraries, schools, roadwork etc), that they'll be a cry from level-headed pundits to let the tax cuts expire, but...they still won't. For reasons unknown to me that seem completely illogical (much like my post!), I think we are headed for a planned collapse and austerity program, to get rid of our big social safety net programs quickly. I hope I'm wrong but I'm seeing it played out across Europe.

It seems anyway that tax cuts end up lowering wages at least on my end does anyone else notice that?

[kentuck]

6. No. I do not think the economy will improve to the point...

...that people will surrender their taxcuts. That is the dilemma of the Democratic Party. Otherwise, I tend to agree with you.

[applegrove]

7. Once social security takes a hit voters will not have any patience for rich people

not sacrificing one bit. I think it will be easy for Obama to go for letting the tax cuts on the rich expire. After all the GOP is going to attack the "spending stream" in this congress since there "is nothing wrong with the revenue stream".

[kentuck]

8. And we will know once and for all who is on our side...

Perhaps?

[SoCalDem]

9. They knew... and they also knew that once in effect, the cuts would be hard to eliminate

My grandfather always said: "It's easier to ask for forgiveness than permission"...and this sort of reminds me of that..

damn the torpedoes..full speed ahead...that's GW's "style".


He had to set up a tax cut early on, and set it to sunset AFTER he was gone...just like he started those two unnecessary wars, knowing that once in, it would be nearly impossible to get out..

republican presidents love to set traps for future presidents. It's what they do..