President Obama wanted an extension of emergency unemployment benefits (would increase the deficit). He also wanted to let the Bush tax cuts expire for top-bracket incomes over $250,000 (would decrease the deficit). I like his thinking on both counts. Congressional Republicans were opposed to the unemployment extension unless it was "paid for" (balanced by an equivalent spending cut). The R's were also adamant about keeping the tax cuts in place for all income levels, including gajillionaires (would increase the deficit). Typical GOP junk food.
So both sides got together, channelled Monty Hall, and chose Door Number 3, behind which Obama gave the R's two more years of their precious tax cuts for the rich, and they gave him 13 more months of unemployment benefits. But they also twisted his arm for a temporary cut in payroll (Social Security) taxes and a hefty cut to the estate tax.
The Republican hypocrisy in all this is simply stunning. The idea that the wealthy need and deserve an income tax break is indefensible. To reduce revenue in two other areas is mind boggling. Hey, R's! How is any of this "paid for"? It's not, not any of it. It increases the deficit (a lot), but the R's flat don't care. They got their tax cuts, and that's the only thing they truly care about.
New Rule: Republicans are no longer allowed to complain about the deficit. Not one word. Their credibility is less than zero. The Clinton-Era tax rates actually gave us a small budget surplus. Then Dubya's unfunded tax cuts and military adventures took us quickly in the other direction, and Republicans cheered all the while . Now the R's shake-down of Obama only takes us deeper in the hole.
Congressional Democrats are understandably pissed that Cousin Barry made a deal with Republicans on the tax issues. But it was probably the only way to get the unemployment extension. And some hard-right R's are upset about the deal's deficit implications. In the end, Democrats will almost certainly hold their noses and go along with it, and the thing will pass.
This political circus reminds Buster of three old sayings:
You can't please everyone.
A good compromise makes everyone unhappy.
When you lie down with dogs, you get up with fleas.
Final note -- Faithful readers will recall that Buster is in favor of letting all the Bush tax rates expire on schedule, meaning rates would rise across the board. I'm joined in this opinion by conservative Senator George Voinovich and liberal economist Paul Krugman. (And apparently no one else.) Buster, George and Paul -- talk about strange bedfellows!
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