I have just learned that Obama might be planning to give in to Republican demands that he introduce a tax cut for the rich.
Not only is this idea bad for the economy it could seriously damage his chances for reelection as well.
The situation is this. Bush issued some extremely generous tax cuts for all Americans in the early 2000s. Those tax cuts are going to expire at the end of the year unless Congress acts.
Originally Obama was going to renew the tax cuts for upper-middle class people, i.e. those earning $250 000 a year, and anyone making less than that. In other words he was going to allow the previous taxes on the rich to come back into effect.
I’m not going to mention how Fox News always talks about the tax hike as if it affects everyone and then tells poor people that Obama is going to crank up their taxes too.
What interests me is the current situation.
According to David Axelrod, one of Obama’s top advisers, the previous plan can’t go forward because of the gains the Republicans made in the mid-term election. Remember: if Congress does nothing this year then the tax cuts expire and everyone has to pay more.
Axelrod: “We don’t want that tax increase to go forward for the middle class, which means the administration will have to accept them all for some unspecified period of time.”
Friends, let’s pause for a second, and let that sink in.
Axelrod is saying that if the Democrats try to renew the tax cuts for the middle class and below, but let the tax cuts for the rich expire, then the Republicans will stop the bill from passing, which will force the taxes on all Americans.
In other words the Republicans would rather force everybody to have higher taxes than allow a tax increase that only affects the wealthy.
And yet Fox News and their cronies still keep saying that the Republicans are the party that cares about the plight of the poor.