Wednesday, December 01, 2010

So, despite the overwhelming support of the long awaited study on military readiness for repeal of Don't Ask/Don't Tell, and despite the President's assurance this would happen this year, and despite the fact that fifty-seven Senators believe we should repeal now (actually, more than that, since some believe repeal is a good idea, but bad for them politically), AND despite the fact the Chairman of the Joint Chiefs of Staff and Secretary of Defense say to repeal it NOW, AND despite the fact that federal judges have ruled it unconstitutional (I know... a lot of "despites" but follow me here...)it now looks as though this might not happen.

Why? Because every single Republican Senator has said they will filibuster ANY bill that does not directly deal with the economy or extending tax-cuts. Yes, a minority of Senators has held literally EVERYTHING hostage until they can cut taxes on the rich.

"But," you ask, "aren't tax cuts a good thing?" Well, yes, to some degree. The problem is, Obama and Democrats have ALREADY said they would cut taxes...only that they won't cut them as much as Republicans want for the richest 2% of Americans. No, seriously. That's what the debate is about. Republicans want bigger tax cuts for the richest Americans than Democrats, and to get it, they're willing to keep the following items from passing:
  • Limiting nuclear weapons worldwide and encouraging stronger American oversight of Soviet missile stocks.
  • Allowing for the assimilation of currently illegal immigrants into American society through college or military service.
  • Repealing Don't Ask/Don't Tell and creating a military in which equality is guaranteed to all.

That, my friends, is the cost of Republican obstructionism. These are all things that could have been passed together, but Republicans said no. Then they said if we did it separately, they would pass some of it. Then they said no. Now they're saying they'll pass NONE of it.

"But," you beg the question, "aren't the rich over-taxed as it is? And if we cut their taxes, it will create jobs, stimulate the economy and trickle down!" You see, this has been the general consensus since Reagan (who was President when I was born. I didn't know what "Reaganomics" were until later in life, but remember hearing it when I was growing up). The Congressional Budgetary Office (a non partisan group) produced a report in which they wrote:

Because businesses’ decisions on investing and hiring depend on the demand for their products, higher demand and production would lead to more investment and hiring. The size of those effects would depend largely on which households got the money. Policies that temporarily increased the after-tax income of people who are relatively well off would probably have little effect on their spending because they generally would be able finance their consumption out of their income or assets without such a change. However, policies that increased the resources of families with lower income, few assets, and poor credit would probably have a larger impact on consumption spending.

I'm no economist, but to put it in terms I understand, the problem isn't lack of money flowing about--it's lack of money at the bottom, allowing the mass of Americans to purchase stuff (demand) and thus hurting business at the top (supply of jobs etc.) A vicious cycle really. But, by cutting taxes on those on top, nothing is done to increase demand, so supply won't increase either.

To pacify the Republicans, Democrats have rolled over and said they would extend some tax cuts to the wealthiest two percent. What is that tax bracket? During the depression, it was 68%, in the sixties, it was 91%, in the seventies it was 70%, today? Guess...go ahead...it's 35%. Interestingly, the richest 1% of Americans have seen incomes rise by 281% recently. That's a LOT of money.

A group of millionaires wrote an open letter to Congress asking them to raise taxes. No, seriously. It's right here.

So, where does that leave us? Republicans say to lower taxes on the richest Americans, otherwise we will not provide a stopgap to increase assimilation, we will not have equality in our military, we will not be safer from Nuclear Weapons. Priorities.

Oh, and lest you think I overstate the goals and level of obstruction of the Republicans, Mitch McConnell, Senate Minority Leader, here are his own words:

While there are other items that might ultimately be worthy of the Senate’s attention, we cannot agree to prioritize any matters above the critical issues of funding the government and preventing a job-killing tax hike...

Bonus:

Which US President said the following in one of the best speeches about Taxes EVER. (hint: He's tied for my second favorite President).

While there are other items that might ultimately be worthy of the Senate’s attention, we cannot agree to prioritize any matters above the critical issues of funding the government and preventing a job-killing tax hike

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