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In 2001, John Boehner (R-OH) voted for George W. Bush's first round of tax cuts to expire in 2011. As Paul Krugman puts it....
Back in 2001, when the first set of Bush tax cuts was rammed through Congress, the legislation was written with a peculiar provision — namely, that the whole thing would expire, with tax rates reverting to 2000 levels, on the last day of 2010.
When the Bush tax cuts expire January 1, 2011....it is because people like John Boehner voted for them to expire in 2011. Barack Obama was not in the Senate, let alone the presidency, back in 2001. Obama did not vote in 2001 to sunset Bush tax cuts in 2011....but people like John Boehner, did.
2011 is fast approaching.
So, John Boehner rolled out his "economic recovery package" on Tuesday....
In a statement, the Ohio Republican identified the "two main problems hampering job creation" as "excessive government spending and the uncertainty Washington Democrats' policies -- especially their massive tax hike -- are causing small businesses."
John Boehner....the man who would be Speaker.....gets both of his "two main points" wrong. And by choosing to use the phrase, "especially their (Democrats) massive tax hike".....Boehner proves to Ohio voters that he is a liar.
The Bush tax cuts, which Boehner is referring to as "massive", will expire in January BECAUSE Republicans like John Boehner voted for them to expire in January. Majority Democrats in Congress don't have to do anything in order for the Bush tax cuts, which Boehner voted to expire in 2011....umm.... expire in 2011.
So, Boehner is a liar. Not really stop-the-presses material, I know.
Now that that is settled....allow me to unpack the rest of what Liar John had to offer on Tuesday.
The first of Boehner's "two main points hampering job creation" is "excessive government spending." This is also not true. The Democratic stimulus bill passed in March of 2009 has saved or created between 2 and 3 million jobs. That's what the CBO reports.
In addition, according to the all-important bond market, government spending is NOT pushing the yield of the benchmark 10 year Treasury bond upwards. Just the opposite. With interest rates so low, there's a strong appetite for 10 year returns between 2 1/2 and 3%. Point being, there's no problem floating government borrowing. Borrowing to pay government debt is not squeezing the private capital market. Just the opposite. Rates are at an even lower rate now than they were when Obama took office.
The first of Boehner's "two main points hampering job creation" is, then, misguided and incorrect, if not simply an out and out lie.
What about Boehner's second "point"?
"...the uncertainty Washington Democrats' policies -- especially their massive tax hike -- are causing small businesses."
This ignorance is meant to deceive voters. There is no "uncertainty" over whether Bush's tax cuts will expire in January, 2011. John Boehner, himself, voted for those tax cuts to expire in 2011 when he helped pass the cuts in 2001. Nothing uncertain about any of it.
However, Boehner likes to lie in bunchs, in clusters. He's a cluster-liar. Not only is John Boehner, and his fellow Republicans, directly responsible for Bush's tax cuts expiring January 1st.....and so blaming Democrats is a falsehood.....BUT Boehner goes for the twofer by suggesting that "small businesses" aren't expanding, aren't hiring because of their "uncertainty" over "massive tax hikes."
Obama's plan is to allow the Bush tax cuts on those earning $250,000 or more to expire, $200,000 for single filers. Approximately 2% of "small businesses" fall into those two categories. Small business owners may be uncertain about where their customers are going to come from...but they are not uncertain about tax cuts for America's wealthiest. Small business owners are not part of America's wealthiest.....Boehner is simply lying.
Now that John Boehner's lies have been dealt with.....what's his big idea for economic recovery? I could have predicted this in my sleep....
"enact a two-year freeze on all current tax rates to stop job-killing tax hikes on families and small businesses."
Corporations are sitting on over a trillion dollars in cash. They are not expanding or investing because demand is down. But John Boehner wants to rescue them anyway.....
The Ohio Republican called for doubling the size of the child tax credit from $1,000 to $2,000 per child, reducing the corporate tax rate from 35 percent to 25 percent and temporarily suspending the capital gains tax.
The wealthiest Americans have gotten even wealthier SINCE the Great Recession, taxes have never been as low on America's wealthiest in my lifetime and U.S. corporations are flush with cash.......and yet few jobs are being created by the private sector.
Boehner's plan is to go ahead and make those wealthy Americans even wealthier.....so they will create jobs......I guess because that's worked out so gloriously thus far.