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BlueStreak

(8,377 posts)
13. Only if the GOP gives a shit about the middle class
Fri Nov 30, 2012, 05:37 PM
Nov 2012

Frankly it is good policy to get rid of all the Bush tax cuts. The idea of making even part of them permanent is completely irresponsible. But that's where we are. The right economic policy would be to end the upper income cuts now and end the others based on triggers (e.g. end half the cuts when we hit 6% unemployment and end the rest of them when we hit 5%.)

Really the GOP is only concerned about how their billionaire funders do, and they are concerned about the general principle of making taxes so low that we have to end important social programs. They don't give a shit about the average American per se.

Please note that our government costs us about 22% of GDP, which is near the 60-year low, and is HALF the size of Canada's or the government of many European countries. Our government is already small enough.

And we are only collecting 16% of GDP. We need to collect at least 20% of GDP.

So really, when Obama says "No matter what, I will force you to give up on: a) your pledge to Grover, and b) the tax goodies for the billionaires that fund you" there just isn't much leverage left after that.

The best thing to do is nothing at all. Let the sequester cuts happen. Its impact on the Pentagon is not a huge deal. Let all the Bush cuts expire. Obama is in a position to blame the higher 2013 taxes on the GOP, and that is when he will have REAL leverage. If Obama can make that stick, then that is a huge political problem for the GOP. But they aren't feeling that now and won't feel in until we let everything expire.

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