Well, the Obama administration gave in to Republican demands to extend the Bush era tax cuts for all wage earners, including to the insanely rich which alone will cost $700 billion. The President argued that the compromise was necessary so that taxes would not rise on the middle class at the end of the year. Of course the Republicans held the unemployed hostage proclaiming they would let jobless benefits expire for the long-term unemployed unless Obama handed over $700 billion (to be added to the national debt) for the leisure class. It worked, and the Republicans with smug smiles say this news is encouraging.
Here’s the thing – Republicans have said that they could not support the $56 billion unemployment extension package unless it was paid for by spending cuts. Yet in the same breath, they demand $700 billion in tax cuts for the millionaire and billionaires among them, (their preferred customers) without a plan to pay for it. Just charge it to the national debt they say.
As the NY Times reported in the article Tax Cuts Suggests New Path for Obama, the entire package of tax relief will cost $900 billion – call it another stimulus package. The Republicans have claimed that the tax cut for the wealthy will create jobs. Now that they have it and there is no more uncertainty, the American public regardless of party affiliation needs to hold the Republicans accountable for job creation.