Wednesday, June 6, 2012

Democrats Against Tax Increases in a Weak Economy

Republicans revel in Clinton, Summers tax comments is short and sweet:

"Congressional Republicans on Wednesday gleefully cited comments by former President Bill Clinton and ex-Treasury Secretary Larry Summers about extending the Bush-era tax cuts, saying the Democrats are helping the GOP make its case before the cuts expire.

In an interview on CNBC on Tuesday, Clinton broke with President Barack Obama and said that tax cuts set to expire in January should be temporarily renewed. A spokesman for Clinton later said that the former president favored extending the tax cuts in 2010, but doesn’t believe the tax cuts should be extended again for the wealthiest.

But the statement was too late, and Summers’s comments only stoked the fires. Speaking on MSNBC on Wednesday, the former Treasury secretary said Congress should temporarily extend the cuts to avert an economic slowdown.

“That means we’ve got to make sure that we don’t take gasoline out of the tank at the end of this year,” Summers said.

That was music to Republicans’ ears.

“They’re saying the same thing as the small businesses are across America,” said Rep. Kevin McCarthy of California, a member of the House Republican leadership. House Speaker John Boehner and Senate Republican Leader Mitch McConnell also pointed to the Democrats’ comments in remarks on Wednesday morning.

Facing 8.2% unemployment nationwide, Republicans argue that the tax cuts — including for the wealthiest –need to be extended to help create jobs. Obama argues that they should rise for higher earners and that the wealthy can afford to help pay down the deficit.

Summing Up

It appears that some powerful Democrats are finally getting serious about repairing all the damage that's been done to our economy the past few years as a result of ill chosen policy moves and priorities by the government.

Even if well intentioned when enacted, it's a truism that the best of intentions won't prevent poor results if the wrong things are done.

Real knowledge, as opposed to good intentions, about the likely effects of policies implemented will always dictate subsequent results.

So it's always important to first be doing the right things before trying to do those right things right.

And the right thing to be doing was and is encouraging solid private sector led economic growth in any way possible right now. And raising taxes won't help that one little bit. Not now.

The politics can wait for a better economy and more jobs.

Besides, doing the wrong thing isn't the smartest thing to be doing politically right now either. People want economic improvement. Now.

So please listen to Bill and Larry, Mr. President. They've been there and done that.

They both have a track record of encouraging economic growth. You don't.

Thanks. Bob.

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