There Is Still Mischief and Trouble From Both Sides of the Aisle

Many of you have heard about the war over the tax and unemployment bill. The major complaint from the Republicans has been that the unemployment payments to constituents are unpaid for. The Democrats are railing because the “rich” are getting a tax cut that will cost approximately $700,000,000,000.00, that is billion, dollars, when in fact, there is no tax cut – there is merely an extension of the status quo.

The Republicans are railing that the President refused to make these tax rate (“cuts”) permanent. The farce on the part of the Republicans is that they know no tax measure will be permanent because they are planning on overhauling the tax system. Republicans are also railing that the extension of unemployment payments demanded by President Obama even though they know that relief must continue in conjunction with the Bush tax rate or we face the possibility of a double dip recession.

I have many questions regarding the framework of the agreement that the President and Republican leaders would like to see in a bill out of Congress, not the least of which is why we are cutting social security tax collections for one year at a time when those collections are already lower than expected outlays to retirees. This bill also cuts estate taxes – the so-called “death tax” and one has to wonder how this item fits into what should be a simple swap of an unfunded unemployment extension authorization to President Obama in exchange for allowing current tax rates to remain unchanged.

The Senate is constructing its version of the bill and Senator Harry Reid has included numerous earmarks that fund special interests such as NASCAR, Hollywood studios, the Rum, and an extension of the $0.45 per gallon subsidy for the ethanol lobbies.

It is important to note that most scientists have determined that it will cost more to produce ethanol than we can afford, and that production requires more carbon output than the use of ethanol saves. As a renewable fuel, it is very limited and, in fact, depletes food stocks and raises food prices. How does subsidizing NASCAR, the Puerto Rico Rum industry or Hollywood studios improve America’s overall economic picture?

In fact, our Senate has constructed a bill that has a 16 page summary (a PDF file). The bill itself is much longer. This bill proposal is stuffed with candy manufactured and wrapped up by Senate Majority Leader, Harry Reid. Does this not sound a bit much for a bill that contains everything the President wants, sans extending the Bush tax rates, without the President having to come up with any sort of spending offset for the new unemployment insurance spending? Knowing all of this, I am stunned by the vociferous opposition of the left to the President’s compromise.

I know Mr. Reid, like Ms. Pelosi, did not get the message sent by voters that they wanted spending and the deficit cut. The presumed Senate majority leader, Senator Mitch McConnell, did not get that message either; and he is equally tone deaf. To date, he has not come out against the inclusion of the Reid earmarks — a practice that has come to represent the corruption of Congress. If Senator McConnell remains silent on these earmarks and does not work to kill the bill, people from his home state will, hopefully, vote in favor of ousting McConnell when he is up for reelection.