For the first time, the president listened to the majority of the people and was willing to extend the existing tax rates for everyone. Many people do not like the backdoor welfare that he attached to the so-called deal that Congress is now considering, nor did we like extending unemployment benefits for another 13 months without identifying the off-sets in spending.
Liberals in Congress are upset that the president was willing to extend the tax rates. Conservatives are upset with the backdoor welfare programs, as well as the earmarks and pet pork projects Members are trying to attach to the “tax deal.”
According to Congress’s bipartisan Joint Committee on Taxation, the tax provisions will “cost” $801 billion, and the extended unemployment benefits will cost $57 billion. The $57 billion is a real cost because it promises to pay out money we do not have in the first place.
The so-called $801 billion cost, however, is based on a static calculation of taxes Congress thinks they will collect if they raise taxes, without taking into account lost tax revenue from lower business profits and higher unemployment. In other words, leaving tax rates the same for all income groups is not a cost! Just as leaving rates the same is not a tax cut as liberals want people to believe.
In fact, two private sector economists estimate using dynamic analyses that GDP could be boosted one-half percentage point in 2011 by extending the tax rates for everyone through 2012, plus the 2 percent payroll tax holiday for workers.
The dynamic analyses estimates would have been even higher if the proposal had been to make the tax rates permanent, because a two-year tax window for businesses is not enough to inspire huge five- and ten-year investments. Also, making the payroll tax holiday applicable to both employees and employers would have provided an additional badly needed jolt to our stalled economy.
But who wants to really stimulate the economy? Let’s just continue to spend our nation into oblivion and tinker with tax rates so we can continue to have a tinker-totter economy instead of a robust one.
Who wants to pass a “clean” tax bill for the good of the people and the nation? Let’s just keep adding on unrelated pork projects like ornaments on a Christmas tree to see just how stupid the voters really are.
What part of the election results of November 2, 2010 don’t they understand? What part of the grassroots citizens’ movement building across this country don’t they understand? What part of “can you hear us now” don’t they hear?
It is obvious that they don’t hear us and they don’t understand. This lame duck session of Congress is turning into a brawl amongst Democrats trying to leave town with a wagon load of pork, and a pander box of liberal goodies they can point to in 2012 saying we tried, but those obstinate Republicans got in the way.
The Democrats are digging themselves into a huge political hole with the pork and panders express. And if they fail to act and tax rates go up for everybody even temporarily, the election results of 2010 will seem like a picnic compared to the shellacking on steroids they will get when the election results of 2012 are counted.
Go ahead, lame duck Congress. Make our day! You will find out just how informed most of the voters have become, since you did not hear us the first time.
Herman Cain is a former CEO, a radio talk show host on AM 750 and 95.5 FM WSB in Atlanta, and a FOX News contributor.