Obama Moves Center, Keeps Circle of Economics Turning

Far left Democratic leadership has moved closer to the middle this week. On Thursday night, Senate Majority Leader Harry Reid (D-NV) dropped the $1.1 trillion dollar omnibus bill, claiming he didn’t have the votes to pass it. Instead, an extension will be granted to keep government payments at their current levels until February, when a new budget can be passed.

Earlier today President Obama signed into law an extension of the Bush tax cuts for all income brackets for the next two years. Previously, Obama had said he opposed keeping taxes low for high-income earners. He agreed to this deal with the Republicans in exchange for an extension on unemployment insurance for the long-time unemployed.

Read more at The Stir

Math is Hard: Keeping Taxes Low Will Not Add to the National Deficit

As the debate over extending the Bush tax cuts rages on, some people are accusing Republicans of adding to the national deficit by not raising taxes on ‘rich’ people. The icky Republicans want to steal $36 billion and “transfer the bulk of that cash into the pockets of the nation’s millionaires.”

Does anyone take basic math classes anymore? Economics? History?

Historically speaking, lowering taxes for employers actually produces more revenue for the government. The Bush tax cuts were what saved us from nose-diving into a recession in the early 2000s. The economy tanked in 2008 because they were spending more than they were taking in, but that’s a subject for another time. We’ve also bounced back from recessions by lowering taxes in the 80s under Reagan, in the 60s under Kennedy, and in the 20s under Coolidge. No country has ever taxed itself into prosperity, and the idea that it could all of a sudden magically work shows a failure to learn from history.

Read the rest at Pundit League

Democratic Appeasement in the Fight to Extend the Bush Tax Cuts

With only three weeks left until the Bush tax cuts are set to expire,Congress is scrambling to save taxpayers from the largest tax increasein history. There have been several proposals tossed around on the Senate and House floors, including extending the cuts only for those families making under $250,000 or individuals making under $200,000 per year.

It appears as though Bush’s tax cuts benefited the non-wealthy after all. Even Obama had to admit that the average American family profited from Bush’s tax policies:

Make no mistake: Allowing taxes to go up on all Americans would have raised taxes by $3,000 for the typical American family. And that could cost our economy well over a million jobs.

Last Saturday, the House passed a bill that would increase taxes on “wealthy” Americans only, but five Democrats in the Senate joined with the Republicans to kill it. Our politicians had to go back to the drawing board.

The current deal that has yet to be voted on is Obama’s compromise with Republicans. If passed, Bush’s across-the-board tax cuts will be extended for two years (with the exception of the inheritance tax, which will go from 0% to 35%), and the payroll tax would be cut by 2%, benefiting every working American. In exchange for the concession, federal unemployment insurance would be renewed for 13 months.

Read the rest at The Stir

National Debt: Raise the Ceiling or Cut the Spending?

With the US Debt Clock continuing to tick, and the incoming freshman class in Congress saying they’ll vote against raising thedebt ceiling, it looks like Uncle Sam is going to have to go digging under the sofa cushions for loose change.

It turns out that money doesn’t grow on trees.

Margaret Thatcher once said, “The problem with socialism is that you eventually run out of other people’s money.” We are officially out of money. Actually, we were out of money years ago, so we started borrowing it from China and future generations.

With all the wonderful government initiatives to pay for (wait — I thought health care was going to be free?), the money has to come from somewhere. It must be time for a tax increase. Maybe eliminating the mortgage interest deduction would help. What about a Value Added Tax? Of course, we could just let the Bush tax cuts expire in January.

Read more at The Stir

Obama Slams Boehner for ‘Holding Tax Cuts Hostage’

On Wednesday, President Obama slammed House Minority LeaderJohn Boehner‘s proposal to extend the Bush tax cuts an additional two years. As things stand now, Robin Hood Uncle Sam is poised and waiting for January 1, 2011, when he’ll be able to grab some cash bags from the greedy rich and give them back to their rightful owners — themiddle-class.

Like most liberal theories, there’s a giant flaw in this one: The rich did not steal their money from the middle-class, nor did they oppress anyone to get it. They earned it through hard work, ingenuity, determination, or simply being born into the right family. Those lucky ones born into wealth have to work to keep it. Even Paris Hilton designs purses.

Obama is disguising a transfer of wealth as “middle-class tax cuts,” but don’t let the wool be pulled over your eyes. The rich earned their dollars, and aside from taxes for infrastructure, it should be theirs to keep or spend as they see fit. More often than not, they use that money to expand operations and create new jobs.

Excessive taxation takes away an employer’s ability to pay her employees, resulting in increased unemployment. Obama says he’s lowering middle-class taxes, but all he’s doing is giving them a pay raise at the employer’s expense; one they might not be able to afford. How is that tax break going to work when your job disappears?

This is America. We are a nation of people that came here for an opportunity, not a handout. Rich people should not be viewed as greedy in general, nor should they arouse the green-eyed monsters within us. They should be respected for achieving their American dream, and emulated if obtaining wealth is your dream too.

President Obama, you may mock and insult John Boehner for “holding middle-class tax cuts hostage,” but I applaud him for holding fast to the American values that built our country.

Cross Posted at The Stir