Tax Cut Deal in Jeopardy
The President has been touting a compromise, however, a tax cut deal seems to be in jeopardy as time moves on. Many Democrats have been vocal about their opposition of keeping tax breaks for the wealthiest Americans. However, now some conservative Republicans (Jim Demint) have voiced their own opposition because of the deficit spending involved in extending unemployment benefits.
Earlier today, Sen. Jim Demint stated on the Hugh Hewitt radio program, that he would help filibuster, and even if it past a cloture vote, would ultimately vote against the tax cut deal. His reasoning being that he promised not to vote for more deficit spending. I think that many conservatives and Republicans, even Tea Party folks, completely agree that deficit spending is one of America’s largest problems right now, and it needs to be avoided like the plague. With that being said, from the unemployment numbers we are seeing among other economic factors, our economy is still on the brink of disaster. Form my previous post, I believe that one of the most important things that need to be done to help the economy grow, is to extend these tax cuts (if not make them permanent) to give some stability and help businesses plan for new hires. Therefore, I think that it is vital to pass this deal, despite the spending involved in extending unemployment benefits.
Again, no one wants to see more deficit spending right now. However, the best way to solve our deficit problem is to grow our economy and cut spending. In my opinion, the trade off is well worth the price. Honestly, I think this is the best we can do right now with so many liberals still in the Congress, and I did not think we would even see tax cut extension for those over $250k in the first place. Personally, I would like to see unemployment benefits taken out, and a permanent extension of the tax cuts. But people and businesses are hurting. People need to know what their tax liability will be, and the clock is ticking. No one wants to see their taxes instantly rise, as the ball in Times Square falls.
So here’s my game plan:
1. Pass the bill as is.
2. In January, when more conservatives take office, work quickly for spending cuts to pay for the benefit extension. Obama may veto these cuts, but force him to do this. Republicans control the House in January, they then control the budget. (Beohner is already planning this)
3. Attempt to pass a bill to make the tax cuts permanent. Most Americans want this and don’t buy into the class warfare offered by most liberals. After all, how does the rich receiving a tax cut too hurt people who earn less? The President may veto it, given it passes the Senate, but force him to do so.
Hopefully, these tax cuts will have the desired effect: help stabilize the economy and help it grow. With proper growth of the economy from these tax cuts, which will increase the tax base, these tax cuts will pay for the unemployment benefits and then some. Cutting taxes and stabilizing our economy should be priority number one. It starts with passing this bill, and then cutting spending like crazy!