The fact that any Republican is even considering voting for Newt Gingrich should be proof enough. But here we have a classic case of Republicans being outmaneuvered on the tax issue by big-spending Democrats. Oy vey, the humanity! This is a no-brainer! How could this ever have happened?
Here’s the background: a year ago President Obama, reeling from the shellacking in the November 2010 election, handed the Republicans a gift. First, he signed an extension of the Bush tax cuts. They are no longer the Bush tax cuts. They are the Obama tax cuts. But second, he signed a law giving all working Americans a one-year break on the payroll tax. This is that hateful tax called FICA that you see on your pay stub. The government takes 6.2 percent of your salary from you and another 6.2 percent from your employer and supposedly invests in the chimerical “Social Security Trust Fund.” Well, that tax was cut to 4.2 percent.
If you are like me, you thought this was a wonderful thing. I have hated that FICA monster ever since I was a teenager and I thought I was going to get a check of $100 for my first job, and it turned out to only be about $90. Now, finally, the Republicans won the House, and they forced President Obama to lower that tax. Genius!
There’s only one problem: lowering the tax costs more than $100 billion in revenue. Trying to sound sober and businesslike, the House Republicans were concerned about balancing the budget and worried about replacing that lost revenue. So, some of them said continuing the tax break for another year (remember, it was only a one-year tax holiday) would increase the deficit. They also pointed out, rightly, that a temporary tax break does nothing to stimulate the economy in the long run because it does not change people’s behavior for long-term investments.
But enter the scheming machiavellian Harry Reid. While Republicans were mumbling about the deficit and abstruse concepts like long-term tax policy, Harry was, as always, thinking about politics. He convinced the Senate to pass a two-month extension of the tax cut. No matter that a two-month extension does absolutely nothing to stimulate jobs and is very difficult for businesses to plan for, Harry had found a way to put money in workers’ pockets!
Harry looked like the tax cutter and the sober Republicans looked like Big Government tax raisers! The fact that Republicans fell for this is a sign that they are a)very bad at politics and b)not reading the mood of the country very well.
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