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Above is a picture of Nancy Pelosi's face after she found out President Obama agreed to a two-year extension of the Bush tax cuts.
Oh, wait. My bad. I'm told the picture above is Pelosi's normal look.
When it comes to taxes, I don't understand Democrats. I don't understand how they think they are entitled to 40% or more of a person's income, or 40% of the income of a small business. I don't understand how they think they are entitled to 55% of a person's estate. Democrats talk about how much the Bush tax cuts are going to "cost," but tax cuts don't cost anything. Only government spending costs. Tax cuts just leave more money in the hands of the people who earned the money. Democrats act like that money belongs to the government. It doesn't. It belongs to the people who earned it.
Democrats like to talk about industrial robber barons, but when the government is taking 40-50% of a taxpayer's money, who is the real robber baron ? It's the government. Democrats like to say they are helping the poor, but it doesn't take 40-50% of a taxpayer's income to help the poor. According to the census, in the middle of this recession, 43.6 million people live below the poverty line in America. If we gave each one of them $10,000, it would cost $436 billion. That is roughly HALF the cost of Obama's 2009 stimulus package. That is less than 10% of the $4.45 TRILLION the government at all levels received in revenue in 2010. We could solve poverty and have $4 trillion left over for other government functions, so don't tell me taxes aren't high enough. I was born, but I wasn't born yesterday. We could almost end poverty tomorrow for a fraction of what the government is currently spending. This isn't about the poor.
So please spare me all the liberal wailing and gnashing of teeth because President Obama agreed to extend the Bush tax cuts for two years. Basic economic theory tells you not to raise taxes during a recession, especially when unemployment stands at 9.8%. The last thing we should want to do is make a bad economy worse by raising taxes now. How can anyone NOT know this ? It has been illustrated time and again throughout history. When FDR raised taxes during the Great Depression, it caused a second depression within a depression. When Hoover raised tariffs during the Great Depression, it made the depression worse. We know these basic economic truths, yet the Democrats still play their counterproductive class warfare games.
Yes, we have a serious deficit and debt problem, but job one is to get Americans back to work. If we knock the unemployment rate back down to 5%, that will take care of about $500 billion of the deficit right there. Then if we undertook the recommendations of the deficit commission, or some variation of that plan which doesn't involve skyrocketing taxes, we might get back to a balanced budget. Following that, we can look at ways to deal with the federal debt.
All the teevee news stations are saying Obama "compromised" with the GOP on the Bush tax cuts. He didn't compromise. He caved, and he did the right thing, even if his liberal base is too ignorant of economics to realize it. The President did his silly duty to liberals by calling the GOP "hostage takers" on the tax cut issue, but the real hostage takers here are the Democrats, who could have extended the Bush tax cuts long ago and signaled some measure of stability to the business sector. Instead, they politicized the issue until the last minute, and are still politicizing it.
The only remaining question is, will the Democrats in the House and Senate go along, or will they hold the entire country hostage to make a point that isn't even valid in the first place ?