2012 Policy: Democratic Tax Rebate

No matter how much they impacted the deficit (roughly 30% of the annual deficit by Congressional Budget Office estimates, or $700 Billion over two years), no matter how much American's didn't want all of them to be extended (see recent Pew poll), no matter how disproportionately they benefit the wealthy, the Bush tax cuts--including those for millionaires and billionaires--have been extended for two more years.

It's a done deal for now. However, I have a suggestion that would help the Democrats politically in 2012 and, more importantly, would help ensure an end to the huge tax cuts for the wealthy. The extended Bush tax cuts result in about $3,000 annually per person across the county. This is an average of >$100,000 annually for the richest Americans and less than $3,000 for much of the middle and lower class (see link for details).

When 2012 rolls around, this is what the Democrats should propose as legislation and promise the American people in campaigns: every American, rich or poor, will get a tax rebate check of $2,500 for each of the next two years. Not only will this evenly spread the benefit across all Americans, but it will also cut the deficit by about $150 Billion dollars! That's right, much of the middle and lower class will get more money and we will still reduce the deficit. That's because the wealthy won't disproportionately benefit this time around.

Republicans will hate this proposal, but it would be a huge winner with the American people. Obama and congressional Dems should go to the people with this proposal in 2012. It will be a winner on numerous accounts.

The Bush Tax Cut Extension Bill Will Never See the Light of Day

Never fear liberals, there is NO WAY that the Bush tax cut bill is going to pass. "What's that?," you say, "Obama and Republican leaders have struck a deal extending all of the Bush tax cuts, including those for millionaires and billionaires." True, Obama and Republicans have struck such a deal, but when the Tea Party hears about this, it's history! The Tea Party has rallied for almost two years against deficits. The deficits that Bush began and Obama has continued have been public enemy number one for them. And the Bush tax cuts are responsible for about 30% of those deficits. Combined with the fact that Republicans would be voting for such socialist Obama policies as extension of the Obama tax cuts from the Stimulus Bill (roughly 40% of the $700B Stimulus), extension of unemployment benefits for 13 MONTHS, tax cuts to encourage green energy, and aid for college students--ALL UNPAID FOR. The tax cuts, combined with these socialist endeavors, will cost at least 1/2 TRILLION dollars annually in deficits, to be paid for later by our children. Anyone that knows anything about the Tea Party will know that there is NO WAY that they will stand for this. Therefore, the bill is Dead On Arrival!

Of course I'm being entirely sarcastic; these tax cuts are going to pass. But the point is that while it is idiotic for Democrats to go along with the tax cuts, it is just as idiotic for Republicans to push this bill, which will increase the deficit in order to extend tax cuts that massively increase the deficit. I know the Tea Party hasn't proven to be particularly intelligent, but in the off-chance that they actually figure out that two plus two equals four, the GOP might just find themselves in a world of hurt. This bill is EVERYTHING that the tea party campaigned against for the last year and a half.

Another Plea to STOP the Insanity

This has already been said in thousands of blog posts, but it is so important that I've got to at least comment on it. The fact that Republicans are even talking about extending the Bush tax cuts for the wealthy after they have been screaming for months about the deficit is certifiably insane! This would be like me proposing to my wife that we start the process of getting out of debt with me changing my work hours from full time to part time, thereby reducing our income by 30%. Clearly that isn't going to allow us to pay off our bills faster and clearly less government income is going to increase the deficit, not lower it. The Bush tax cuts have resulted in a large share of the deficit (>30%)--more than double of what the wars are contributing.

The public seems to understand this, since >90% of Democrats, >65% of Independents and >50% of Republicans don't want the tax cuts for the wealthy extended. So why in the hell does Obama seem to be hinting that he might go along with this?!? Is he completely crazy? It's horrible policy, it's bad for America, and the American people don't want it--especially Dems and Independents. It is simply beyond me why Obama would ever consider going along with this.

Crazy things people believe

People that believe that Obama is a Muslim
are as crazy as
People that believe that Bush was behind 9/11
are as crazy as
People that still believe that Iraq had weapons of mass destruction
are as crazy as
People who believe that Obama is "for the terrorists"
are as crazy as
People that believe that there is a valid scientific debate about climate change
are as crazy as
People who believe that gay marriage threatens their marriage
are as crazy as
People that believe you should offer the middle ground before negotiations begin
are as crazy as
People that believe you can argue that the deficit is the most important issue, while simultaneously proposing to extend massive tax cuts for the wealthy