Capitulation?

I waited to post anything because I was pretty angry about this, but I think something needs to be said.

Yesterday the President said the extension of the Bush tax cuts on the wealthy will expire in 2 years. Funny, 2 years ago he said he would make sure that they expired January 2011. Kind of makes you wonder.

True, the middle class gets a tax cut, but it is miniscule compared to what the wealthy get.

The richest 2% of Americans get a massive 2 year tax break, the unemployed get a half-assed promise of 13 months extension of the basic insurance (nothing for the 99ers) and Social Security gets a 13% cut in funding. This creates no jobs, puts more money in the hands of people who will not spend it than in those who will and it threatens Social Security.

Here’s where one of the lies comes into play – we need to give tax cuts to the job creators. They already get one. If you hire someone, the money is a business expense and is not taxed. If you get the money as income, then it is already being taken out of the business and even if you reduced the tax on it to zero will not result in even one job being created.

$150 billion in tax breaks for the richest 2%, $15 billion for the unemployed 10%. Hedge fund managers making $1 billion a year pay a 15% tax rate. The estate tax drops to its lowest point ever and there’s a $5 million dollar exemption. Why not tax it as income? I don’t get a $5 million dollar exemption on my income. Fair is not the word that comes to mind right now. I guess we’re supposed to be happy that the tax cuts from the stimulus get continued, as if those crumbs make up for everything else.

Sure, a 2% payroll tax cut gives people money to spend right away. So would increasing the already approved tax credit – of course, that wouldn’t attack Social Security.

Is it capitulation? I don’t think so. I think the President agrees with this in principle. If the country gets out of this debacle with a middle class I will be surprised. It can happen, but it won’t be easy. And if Social Security survives I will be amazed.