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Mon Nov 26, 2012, 03:45 PM

The Myth of the Obama Cave-In

http://politicalwire.com/archives/2012/11/26/obama_didnt_cave_on_bush_tax_cuts.html

Obama Didn't Cave on Bush Tax Cuts


David Corn says the idea that President Obama "caved in" on the Bush tax cuts in 2010 is a myth.

"Obama didn't wave the white flag in 2010. He turned a face-off over the Bush tax cuts into an opportunity to enact a second stimulus that he otherwise could not get past Senate Republicans. His failure at that time was not that he mustered insufficient mettle; he failed to convey to the world that he had ju-jitsued the GOPers."


http://www.motherjones.com/politics/2012/11/obama-fiscal-cliff-budget-deal-bush-tax-cuts

The Myth of the Obama Cave-In
With the "fiscal cliff" looming, the conventional wisdom is that the president capitulated during the last tax cut fight. Here's what really happened.
more...
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http://www.boomantribune.com/story/2012/11/26/124646/18


Should Go Without Saying...

by BooMan
Mon Nov 26th, 2012 at 12:46:46 PM EST

Only morons think Obama caved in his negotiations over the Bush tax cuts in 2010. I thank David Corn for setting the record straight, but it really wouldn't be necessary if there weren't a bunch of progressives running around who are addicted to poutrage and who have no understanding of how Washington DC works. Not only did Obama get a stimulus bill out of the deal (extending unemployment insurance, a payroll tax cut, and a child tax credit), he got renewable energy credits, the repeal of Don't Ask, Don't Tell and the ratification of the New START Treaty with Russia. Without that stimulus, Obama may very well have lost his bid for reelection due to a bad economy, and letting the Bush tax cuts lapse (even for only the top 2 percent) in the midst of a massive recession wasn't going to help the economy in the short term. Part of the progressive argument on taxation is about fairness, but it's also about sound policy. You should raise and cut taxes at different times based on the current condition of the economy. Cutting tax rates is one of the few ways the federal government can help a struggling economy. That's precisely why taxes should not be cut when the economy is doing well. Taxes should be raised when the economy is doing well, and the added revenue should be used to pay down the debt incurred during bad economic times. Related to this, new investments are best made when interest rates are low.

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Response to babylonsister (Original post)

Mon Nov 26, 2012, 03:46 PM

1. Interesting

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Response to babylonsister (Original post)

Mon Nov 26, 2012, 03:58 PM

2. That wasn't much of a "second stim." It was more keeping existing programs and tax rates

My understanding (and correct me if I'm wrong) is that

First, the 2010 deal extended – and expanded – existing payroll tax relief through the end of 2012.

The first portion of the plan was a continuation of a preexisting tax breaks that “cost” $175 billion.

In addition to the payroll tax extension, the "stim" extended $55 billion in long-term unemployment benefits for another year. Again, this did little but leave the status quo in place … which isn’t “stimulating” anything.

Finally, another round of “stimulus” funding was revenue sharing with the states composed of $105 billion in aid to education, police, etc. and then some $60 billion in additional infrastructure projects (mostly road construction).

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Response to leveymg (Reply #2)

Mon Nov 26, 2012, 04:50 PM

5. Pretty much dead on

They dare not call it stimulus, and that wasn't much of a stretch, especially "additional" stimulus. It was some of the least effective stimulus "spending" that they could do, on top of the 40% of the original stimulus that was also tax cuts. The unemployment benefit extention was the most useful, and it was basically maintaining the status quo. The original stimulus was so weak, they couldn't afford to let even this little bit go.

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Response to babylonsister (Original post)

Mon Nov 26, 2012, 04:24 PM

3. Some people just hate Obama...most of the "Obama caved" shit on the left came from these people

Luckily, these idiots are much less dangerous now that Obama's been reelected, so we can let them prattle and carry on in their usual way, and not have to worry that their dimbulb antics will take the rest of us down with them.

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Response to babylonsister (Original post)

Mon Nov 26, 2012, 04:33 PM

4. Thank you, babylonsistah! So much was accomplished in that negotiation..

glad to see it getting highlighted.

Matt Iglesias is writing about this, too..over at Slate..

So Obama secured a deal that extended the middle-class tax cuts (which he and the GOP agreed on), extended UI benefits, created a stimulative payroll tax holiday, cleared the legislative decks for "don't ask, don't tell" repeal and the passage of the New START arms-control treaty, and in exchange he gave up nothing of any real substance. Republicans got two more years' worth of high-end tax cuts at a time when deficit reduction wouldn't have helped the economy, and House GOP opposition would have prevented any new revenue from being spent. Whatever formal leverage he had two years ago still exists today, except now he gets to play that leverage from a somewhat stronger economic and political context. It's totally solid legislative dealmaking and not any kind of cave-in or surrender.


http://www.slate.com/blogs/moneybox/2012/11/26/lame_duck_2010_tax_deal_obama_s_secret_triumph.html

We need to all work for a Dem House in 2014 so PBO can have support for the Changes our Country needs.

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Response to babylonsister (Original post)

Mon Nov 26, 2012, 04:54 PM

6. Spam deleted by gkhouston (MIR Team)

 

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Response to babylonsister (Original post)

Tue Nov 27, 2012, 03:33 AM

7. Thank you Babylonsister

The man is amazing. Needs to toot his own horn a bit more artfully, though.

The wailing and gnashing of teeth, the rending of garments and ashes upon the heads of the mourners have begun again -- in other words, the same people who thought they had been thrown overboard in Obama's first term think the imaginary event is happening again.

We will survive. President Obama will go to work every day pushing that rock up the Hill. I look to his past record to interpret current events, and I see someone who will deliver on his promises in spite of the GOP.

Hekate

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Response to Hekate (Reply #7)

Tue Nov 27, 2012, 09:34 AM

9. ^ I like this post.

President Obama will go to work every day pushing that rock up the Hill.

Yes.

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Response to babylonsister (Original post)

Tue Nov 27, 2012, 09:28 AM

8. Equally foolish is letting GOP claim a small tax on top 2% is a Major Compromise that needs the Dems

to trample on the 98% in exchange for that.

Both parties need donations from the top 2%.

Both parties are taking a risk by asking the very comfortable to pay a bit more and spare the middle class from more disproportionate sacrifice. It is just that the Democrats started earlier and lost waves of corporate cash for the 2012 campaign.


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