The tax-cut drama is verging on the ridiculous with scant concern for the middle class – the backbone of the nation. Mitch McConnell, the leader of the minority in the Senate, denounced the deficit in the budget but today he wants to make it worse by allowing mega tax cuts for the wealthy. He is pointing his guns at the middle class contending that if the rich were taxed so too should the middle class.
The battle is about politics and economics. The Democrats should remain firm on the stand they have taken for their own and the nation’s good.
The wider issue is about what should be taken to be proper behaviour in American politics. There is a difference between tough persuasions and outright bullying which McConnell has been resorting to; he has set a bad example.
How did America reach this situation? It was the strategy employed by the Bush government to force through the tax cuts for the rich. At the root is fact that the Republican Party has become radicalized by placing the victory of its own party superior to the welfare of the nation and its economy.
The Bush government in 2001 allowed massive tax cuts for the rich and smaller snipping for middle class. The pretence was that tax breaks were being offered for the ordinary households. Simultaneously it skirted the rules of the Senate that were there to stop the taking of irresponsible actions relating to fiscal policy. These rules would have compelled the Bush government to balance spending cuts with the tax cuts amounting to $1.3 trillion. The tax cuts expire on 31st December 2010. The magical hour is fast approaching. If Congress fails to act, the tax cuts imposed by Bush would change into the legendary pumpkin; the tax cuts would return to the levels of the Clinton government.
Responding to the situation Obama is suggesting a legislation that would basically maintain tax rates without changes for 98% of the people but allow rates to increase for 2% of the wealthy. The Republicans are flexing their muscles to block the bill. Their contention is that if their wealthy buddies are not given tax breaks then the middle class will have also to endure tax increases.
The step is astounding as none will disagree that imposing new taxes on the middle class in the middle of the economic gloom is disastrous unless there are job generating plans to offset it. The Republicans are up in arms against this also. In a nutshell the GOP is wants to throw back the economy into recession.
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