Unemployment benefits and tax cuts: 'compromise' as usual
Unemployment benefits extended, payroll taxes cut, and all Bush tax cuts extended: an all-too-typical Washington 'compromise' where everybody gets what they want – while the deficit deepens.
Here’s the breaking news on the “compromise” on the Bush tax cuts:Skip to next paragraph
'EconomistMom' (Diane Lim Rogers) is Chief Economist of the Concord Coalition, a non-partisan, non-profit organization which advocates for fiscal responsibility, and the mom of four (amazing) kids to whom she dedicates her work. She’s been blogging since Mother’s Day 2008.
Subscribe Today to the Monitor
Washington (CNN) — President Barack Obama on Monday announced a deal with Republican leaders that would extend Bush-era tax cuts for two years and unemployment benefits for 13 months while also lowering the payroll tax by two percentage points for a year.
It’s what I expected, because it’s the typical pattern we’ve seen for the past several years. “Bipartisan compromise” means both sides get what they want, because deficit financing of these policies seems like the painless way to get out of gridlock. Rather than mutual sacrifice, it is mutual grabbing. We can never manage to “trade off”–we only “pile on.”
Tonight many Democrats are expressing their dismay about the President abandoning his campaign promise to let the Bush tax cuts for the rich expire. But I would remind them that it doesn’t mean much to “promise” something that you literally don’t have to do anything to fulfill. Remember, all of the Bush tax cuts would expire under current law if Congress and President Obama just didn’t do anything. The much more meaningful promise of President Obama was his promise to continue the Bush tax cuts for all households with incomes under $250,000, because it had to become one of President Obama’s own proposals in his own budget in order to keep that promise. And so far, he’s obviously keeping that promise.
The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.