Remember that little cartoon I found to represent my malaise on tax cuts? Well I reject that economic fatalism now. The fat cats can't be allowed to always win and make a mockery of our two-party political system. It's simply unfair that the United States, a democracy, has somehow grown into an aristocracy or an oligarchy or worse a plutocracy:
The rich Republicans who make up the wealthiest 2% of our country are boo-hooing the fact that once the Bush tax cuts are lifted they'll have to pay taxes just like everyone else. And of course the Democrats are wiffling and waffling and refuse to take a stand. But Krugman's latest NYTimes column is a call to action. Here's the play-by-play:
"So, about those tax cuts: back in 2001, the Bush administration bundled huge tax cuts for wealthy Americans with much smaller tax cuts for the middle class, then pretended that it was mainly offering tax breaks to ordinary families. Meanwhile, it circumvented Senate rules intended to prevent irresponsible fiscal actions — rules that would have forced it to find spending cuts to offset its $1.3 trillion tax cut — by putting an expiration date of Dec. 31, 2010, on the whole bill. And the witching hour is now upon us. If Congress doesn’t act, the Bush tax cuts will turn into a pumpkin at the end of this year, with tax rates reverting to Clinton-era levels.In response, President Obama is proposing legislation that would keep tax rates essentially unchanged for 98 percent of Americans but allow rates on the richest 2 percent to rise. But Republicans are threatening to block that legislation, effectively raising taxes on the middle class, unless they get tax breaks for their wealthy friends...So should Democrats give in?On the economics, the answer is a clear no...the G.O.P. plan would add hugely to the deficit — about $700 billion over the next decade — while doing little to help the economy.On the politics, the answer is also a clear no. Polls show that a majority of Americans are opposed to maintaining tax breaks for the rich. Beyond that, this is no time for Democrats to play it safe...Threats to punish innocent bystanders unless your political rivals give you what you want have no legitimate place in democratic politics...It’s time for Democrats to take a stand, and say no to G.O.P. blackmail."
The GOP tax ultimatum is either the rich benefit or we're all gonna suffer. What the Democrats need to do is crystal-clear. Instead of "running scared" they need to pony up and save middle class America.
I mean look what's happening to the middle class. The rich think everyone is out to get them but the little folk have been suffering since the 1920s! According to this handy article from Business Insider (equipped with helpful charts from reputable sources):
"- The gap between the top 1% and everyone else hasn't been this bad since the Roaring Twenties- Half of America has 2.5% of the wealth- Real average earnings have not increased in 50 years- Income tax is getting lower and lower for the rich- Republican tax cuts have significantly increased the wealth gap- America spreads its wealth FAR LESS than other developed countries- [And the worst] Despite the myth of social mobility, poor Americans have a SLIM CHANCE of rising to the upper middle class"
So all you lower middle class and poor folk who support tax cuts for the rich because you hope you'll someday become rich, you can kiss that sorry hope goodbye. Just take a look at how the rich people you adore have screwed up America.
I mean, that's not how America works - there should be social mobility and a middle class! If you want the real America back - with thriving economic opportunity for everyone, not just the top 2% - then you should press your congresspeople to repeal those Bush tax cuts, and vote anyone out of office - Republican or Democrat - who refuses to do so. You can start your activism with a
"The Bush tax cuts, like the Iraq War, are one of the primary drivers of our large federal deficit. And like the Iraq War, the Bush tax cuts were sold to the public through outright deception.The snake oil the Bush administration peddled was that the tax cuts, which overwhelmingly went to the rich and the ultra-rich, would spur the economy.Now that we're facing the worst economic crisis since the Great Depression, many so-called "conservatives," joined with corporatist "moderates," are singing the same tune. They are demanding we extend the tax giveaways for the wealthy (set to expire at the end of the year) at a cost of $700 billion over the next decade.Meanwhile, these same members of Congress are demanding deep cuts to the social safety net for the poor, the middle class, the unemployed and the elderly.There is very little that so clearly demonstrates the callous venality of some members of Congress than the simultaneous demand to give Paris Hilton a tax cut while pushing benefit cuts to Social Security.Tell Congress: Don't extend the Bush tax cuts for the wealthy."
Other News
Undue Tea-Party Over-excitement:
Why It's Time for the Tea Party - WSJ (We're not seeing "something big" or "totally new" but the same old deal, only lacking political finesse, says Greenwald. Don't wet your pants.)
Tea Party’s already won - The Hill (Awww, Stoddard are you feeling sad today? Stop with the political fatalism already!)
Weakness in the Middle East
"Unless the secretary of State knows something we don't, the Middle East peace talks will fail. And failure is worse than not negotiating."
The Red Elephant in the Room - China
As I told Mr. Reich, former U.S. Secretary of Labor under President Clinton, on his Facebook page, I think he's right in saying that America's economy will not improve if we focus only on getting tough on China but I believe getting tough on China is a key part of America's economic self-awakening.
Getting tough on China is apart of America coming to terms with the fact that our economy can no longer skid by on China's cheap goods, a $1.4 trillion debt to the Chinese, and our domestic reliance on debt as opposed to savings. America cannot begin to fix its problems without first "getting wise" on China.
His response was:
"There's a difference between "getting tough" on China, as if that holds the key to jobs and a better economy here, and recognizing that China's huge investments in education, infrastructure, and industrial policy can make it the world's preeminent power and eclipse the United States. The latter suggests fundamental reform here at home."
I can agree with this. I just wonder if the United States addressed our many domestic problems - education, infrastructure and industrial policy - could we get back on track and prevent China from eclipsing the United States? I think fixing our domestic problems (read: eliminating Bush tax cuts) could definitely help but will it be enough? This isn't the Clinton era anymore. As China becomes stronger and begins to flex its economic, political and military might, can we afford to get "soft" on China?
- Ryu
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