A little more on the tax deal

First, it should be obvious from this deal that no one in DC cares about the deficit because all this does is add to it. Now can we stop the posing, please?

There are many reasons why I don’t like this. I will admit that initially it gives more in dollars to the middle class than to the rich. The problem is how that is done. The extended tax cuts are heavily weighted to favor the rich so the deal is one-sided, and everything else is a tax credit that will not be included in any further extension of the cuts. The numbers look like this deal favors the average American, but after 2 years it swings the other way – in 13 months for the unemployed. So on the whole, the structural changes that are most likely to become permanent are those that favor the rich. There is no equity. Congress should act to help all Americans equally.

Also, this is being framed as a compromise when it isn’t. There has been no compromise on the part of people who want to give a bailout to millionaires and billionaires and the only compromise offered on that from the other side was summarily rejected by the President for no good reason.

It is good that tax cuts for the middle class have been passed. But in the frenzy of complaints and self-congratulation the underlying problems are being obscured. I did this myself in that previous post. I complained about how this deal gives breaks to those who don’t need it. Let the accusations of class warfare begin, but that battle started a long time ago. What I neglected to point out adequately was how this deal affects policy going forward.

The deal legitimizes tax cuts as the best way to deal with the economy and it minimizes job creation and spending – even in the form of unemployment insurance and food stamps. It reinforces the canard that tax cuts for the wealthy will help the economy and employment – even though that didn’t work for the past 10 years. It also legitimizes lower tax breaks for the middle class and takes a big step towards defunding Social Security.

So in the name of compromise and what is important for the economy and the nation as a whole, every alleged principle on tax cuts and deficits was abandoned. No one fought for anything and no one thought about the American people. I suppose what bothers me the most are the naked lies. I know better than to trust politicians, but they used to have the good grace not to outright lie on national television.

Rather than something that would help the county we get political maneuvering and politicians pandering to the people who they represent* rather than serving those that elected them. Whatever the short term gains, the American people lose if this goes ahead as stated because it contains no plan to fix the problems we face. The true crisis is ignored and we get more business as usual. I don’t think anyone voted for that.

It is late, I am cranky and I am ranting. If this makes no sense let me know. I am seriously disappointed with the people in DC because we need leadership and all we get is whining from both sides.

*ETA: What I am saying is that the politicians are representing corporate and individual interests and not the interests of the electorate.