This bill did not "cut" taxes as has been alleged by the dems. All it did was preserve the same tax rates in existence right now. Only in the Obama Bizarro World could not increasing taxes be considered a tax decrease. In fact, the bill raises the estate tax from 0% to 35% so it is actually a net tax increase. Not only was this a tax increase, no spending was cut. In fact, in order just to preserve this net tax increase from being an even worse tax increase, the Republicans had to agree to extend unemployment benefits to encourage people not to work and had to agree to countless billions in earmarks and pork barrel spending attached as "sweeteners." In reality, this bill is a trillion dollar stimulus bill. As Krauthammer says: "If Obama had asked for a second stimulus directly, he would have been laughed out of town." Yet, he writes:
Obama is no fool. While getting Republicans to boost his own reelection chances, he gets them to make a mockery of their newfound, second-chance, post-Bush, Tea-Party, this-time-we're-serious persona of debt-averse fiscal responsibility.If Republicans had just said no, they could have waited a few weeks until they have a majority and proposed a bill that permanently reduces taxes while cutting spending. This program of cutting taxes, spending, and reducing the size of government is why we elected them. Their leaders have already begun to fail, and they haven't even been sworn in.
And he gets all this in return for what? For a mere two-year postponement of a mere 4.6-point increase in marginal tax rates for upper incomes. And an estate tax rate of 35 percent - it jumps insanely from zero to 55 percent on Jan. 1 - that is somewhat lower than what the Democrats wanted.