Tax Compromise Swindle

By Douglas V. Gibbs

For those Conservatives out there that are excited about the tax compromise between President Obama and the Grand Ol' Party, don't be. The House Democrats are angry because the compromise does not allow them to stick it to the achievers and job creators. Conservatives should be dissatisfied with the deal because it extends the "pay-people-not-to-find-a-job" program for another 13 months, and the compromise is filled with incredible government spending, including an extension of ethanol subsidies, that is not only not necessary, but downright dangerous to our economy, and booming deficit.

The Republicans have shown their establishment mentality once again, and their inability to combat against earmarks, and the urge to spend the taxpayer's money. Remember, the earmark ban didn't pass either, because of Republican votes against it. Both sides are throwing pork into this compromise bill, and in a word, it is "unacceptable."

And these morons wonder why the Tea Party had such an influence on the mid-term election.

It is true that the Democrats are dismantling their party one temper-tantrum at a time, and the fun of watching the Democrats whining over the tax compromise is quite gratifying, but let's not underestimate the power of the liberal left's ability to deceive, and regroup.

Despite what the Democrats, or at least Obama, is saying, there is no new stimulus in what they have done. The agreement only temporarily freezes tax rates for two years, cuts payroll tax rates 2% for only one year, raises the private business killing (and Marxist) estate tax to 35%, and boosts subsidies for proven-to-be-a-failure ethanol. And that is only the beginning of the spending and anti-economy bill's destructive nature.

These politicians, from both parties, are loading as much spending as they can into this so-called tax compromise before the more conservative Republicans take office in January. And with all of this spending crammed into the thing, it is no surprise that Obama is calling it a stimulative bill. There is no stimulus. Perhaps stimulus in the definitions used by liberals, but in reality, this is a huge spending bill, and the Republicans, rather fooled or if they are accomplices, are going along with the notion that allowing all of this spending is necessary to keep the tax rates the same. Taxes ought to be cut permanently. In fact, the whole income tax system needs to be overhauled, reformed, and perhaps someday done away with. We are seeing the rates basically going up in this tax compromise swindle - which includes the tax credit continuing for people that don't even pay taxes, and the death tax going from zero to 35%.

Fact is, the Democrats are still currently running the show. The reaction we are seeing is only because of the leftist desire to stick it to the rich, but overall, this tax compromise is exactly what any Marxist Democrat should desire. Problem is, the Democrats are so convinced that the rich are stealing their wealth from the poor that they are beside themselves that the tax rates on the rich, aside from the Estate Tax, isn't going up. The liberal Democrats are even saying that this move will put money in the rich's pockets, when it does nothing of the sort. The tax rate did not change. The ones getting free money are the people that don't pay taxes. They are getting more tax credits for their low income, while the producers, the achievers, the ones that create jobs and build prosperity, get nothing.

Fact is, this is a setup. The actions this compromise takes on taxes are not permanent. It is designed to enable the Democrats to spend the next two years spreading more vitriol against the rich. They are doing what they did against George W. Bush. The Democrats had people hating Bush that didn't even understand politics. Now, the Left is ready to wage war again. The liberals, this time, are ready to wage war on the producers of this nation, to create animosity between the different economic classes. They claim the rich are waging war against the poor. In reality, it is the Democrat Party waging war against America. They figure that after two years of waging a verbal campaign against the achievers of this nation, as they did with the "hate Bush" strategy, they will be back in full power, and will be able to raise the tax rates to their desire.

The Democrats are also setting us up for more taxation elsewhere. Watch for a concerted effort to institute a wealth tax, a tax specifically written to attack already earned income, already taxed income. Obama thinks it will be possible, because in two years, when things don't improve, he will be able to say, "We tried supply side economics the last two years, I compromised with the Republicans and played their game, and it didn't work. It didn't create jobs, and it didn't create a recovery. The Republican's plan has failed, now it is time to do it my way."

Of course this tax compromise won't stimulate our economy. Between the spending, the temporary tax finagles, and an increase in the Death Tax, there will be no improvement. If there is any improvement, it won't be because of government, but be because of the private sector working around government obstacles, and growing despite these statists. And if that happens, then the Democrats can say they have the ability to tax more because there is more money. You see, it is a win-win for Obama. In his mind, if there is improvement, he will be the hero because despite the Democrat Party's opposition to his compromise, he was man enough to work with the Republicans for the sake of the nation; if there is no improvement, he gave it a chance but the opposition's plans failed, and now he can do what he originally planned.

Once again, I want to remind you, there are no tax cuts in this compromise. There is a small, temporary tax cut in the form of the 2% payroll tax cut for one year, but that's it. Otherwise, there aren't any tax cuts. The tax rates aren't going up, which will protect us from sending our economy into the morgue, but it won't help our dire economic condition to the positive.

Obama has cued us in on his plans with his own words. He said he's going to battle to raise the upper rate at the end of these two years. This is simply a move to position himself for his reelection campaign. When 2012 approaches he'll be able to get his liberal left base back on board by again going after tax increases for the rich, while making the moderates happy by claiming he was willing to work with the Republicans. He's poised to destroy the American economy, just later down the road than he had originally hoped.

Remember, this is the guy who claimed that the Bush Tax Cuts caused the recession, so he is not a sudden believer in this compromise, he is setting the nation up, he is pulling his usual "I'll say this to get me leverage, even though I plan to do that down the road."

Also notice that the Republicans have said they wish to stop the expiration of the Bush Tax Cuts, but they have given us nothing else. What is their plan? Where is their vision? Okay, they won the last election, but what now?

It seems to me that the GOP does not fully understand what the mid-term election was all about. They have given us, if it were to pass Congress, a temporary tax freeze that includes massive spending like the new ethanol subsidies. Is that what the people were demanding in November? These people are politicians, not statesmen. They think this is a revenue problem. They think it is government's job to chase after every little whim of a problem. They are unable to break their old habits in Washington. Remember, though not all of them are this way, a good portion of the Republican Party has been a part of this establishment system for a long time. False actions, false promises, false deals, and government expansion.

This deal needs to fail in Congress. If it passes, the GOP will be just as guilty for the death tax, ethanol subsidies, and all of the pork spending in this monstrosity. If it fails, the task of raising taxes and increasing spending will lie on the laps of the Democrats, and that is what must happen if they are to be further exposed for the statists that they truly are.

-- Political Pistachio Conservative News and Commentary

There is No Tax Deal - Heritage Foundation

Swindle of the Year - Washington Post

U.S. Senate Says "No" to Earmark Ban - Political Pistachio