Spending Cuts, Not Tax Increases, Needed

By Douglas V. Gibbs

The negotiations between President Barack Obama and the Congressional Republicans did not go as the liberals had hoped. In fact, the liberal media is downright upset with Obama over his tax bill compromise. They fear he may not be liberal enough, which tells you have out of control the liberal base has truly become. The President, and the GOP, came to an agreement on extending the tax rates for two more years - all of the tax rates.

Filled with something for everyone, and something to anger everyone, the agreement also reinstates the death tax, and adds 13 more months of non-offset unemployment insurance benefits. However, the compromise also institutes a temporary two percentage point reduction in the payroll tax.

The return of the death tax is bad policy, and the extended unemployment benefits creates a disincentive to work. Despite those damaging parts of the agreement, when it comes to the income tax rates, it is the first time during his presidency that Obama has not gotten what he wants - and the country is better off for it.

While the negotiations commenced, the Democrats worked feverishly on more spending bills. Reid filed for cloture on a brand new DREAM Act, Barbara Boxer demanded votes on over 100 environmental bills, Congress has been working on an expansion of the Food and Drug Administration, regulations on the food supply, and of course work on increased regulations against the freedom of the Internet.

The only credible way to seriously address the deficit is through spending cuts, not tax increases, and the Democrats know it - which is why they were willing to compromise with the Republicans. The compromise was also probably due to the fact that despite having the majority, the Democrats don't have the votes. Such a reality is evidence of the disarray in the Democrat Party.

Michelle Bachmann is mounting an opposition to the compromise, claiming the establishment has fouled up. Considering the GOP win in November, she believes they could have held out and stopped the unemployment extension which is not paid for and adds to the incredible mass of government spending.

However, I do like the compromise because it forced Obama to surrender. Imagine how much he will have to surrender after January, once the Republicans take control of the House?

Bernie Sanders is talking filibuster. The Democrats are in love with raising taxes, and the more liberal of the Democrats are angry about not being able to raise taxes on the higher incomes, which already pay most of the taxes in this country. Of course these idiots keep saying that the rich are getting tax cuts, when that is a lie. The compromise simply keeps the tax rates from going back up.

Though keeping the rates low may not necessarily create any more jobs, allowing them to raise back up would have caused unemployment to go up. The economy will slow its collapse, but the crisis has not yet been completely averted.

The bill still has to be approved by Congress.

-- Political Pistachio Conservative News and Commentary