Tag Archive: Washington Post


Photo taken from Politico

Since former president George W. Bush passed tax cuts for the wealthy in 2001, Barack Obama vocally made it his sole mission to reverse the tax policy during his campaign and career as president since 2008.

Unexpectedly, the long battle over the financial policy has led Obama to strike a deal with the GOP that would let the Republicans extend their precious tax cuts for two more years in exchange for a 13-month extension of unemployment insurance benefits.

According to Ezra Klein from the Washington Post, Obama and the GOP came to an agreement that the GOP would get around $95 billion in tax cuts for wealthy Americans and $30 billion in estate tax cuts. Democrats got $120 billion in payroll-tax cuts, $40 billion in refundable tax credits (Earned Income Tax Credit, Child Tax Credit and education tax credits), $56 billion in unemployment insurance, and, depending on how you count it, about $180 billion (two-year cost) or $30 billion (10-year cost) in new tax incentives for businesses to invest.

Unfortunately, House Democrats have nothing but utter disdain and fury over the compromise and put out a flurry of complaints, saying Obama gave in too quickly to the GOP.

“I still don’t think it’s in the best interest of our country, I really don’t,” said Sen. Tom Harkin (D-Iowa). “I just don’t think we fought hard enough. I disagree with the president. He had a press conference and called it a political fight. It’s not a political fight, it’s a fight about what our country is about.”

Sen. Bernie Sanders (I-Vt.) vowed on Tuesday night to filibuster what he called a “very bad agreement,” while Sen. Frank Lautenberg (D-N.J.) said: “I think a ransom was paid and it was a very high price,” according to a report from The Hill newspaper,

Meanwhile, Obama stood firm and hit back at his own party for wallowing in politics in a Tuesday press conference on  Dec. 7, 2010. Claiming the deal was all for the sake of the American people.

“My number one priority is to do what’s right for the American people, for jobs, and for economic growth. I’m focused on making sure that tens of millions of hardworking Americans are not seeing their paychecks shrink on January 1st just because the folks here in Washington are busy trying to score political points,” Obama said and also continued to stress the importance behind his decision.

“I’ll cite three of them. Number one, if you are a parent trying to raise your child or pay college tuition, you will continue to see tax breaks next year. Second, if you’re a small business looking to invest and grow, you’ll have a tax cut next year. Third, as a result of this agreement, we will cut payroll taxes in 2011, which will add about $1,000 to the take-home pay of a typical family,” Obama said. “So this isn’t an abstract debate. This is real money for real people that will make a real difference in the lives of the folks who sent us here. It will make a real difference in the pace of job creation and economic growth. In other words, it’s a good deal for the American people,”

I believe the President was very genuine with the reasons he gave for compromising with the GOP. Even 67 percent of Americans get why Obama did what he had to according to the Politico polls.

After a ridiculous amount of overspending on the war in Iraq and Afghanistan for over seven years, George W. Bush left the American economy in major financial crisis, leaving a heap of shit for Obama to clean up. The tax cuts have only been Bush’s retribution and have been welcome in the American economy given the devastation of the recession and unemployment. However, not everyone deserves these tax cuts especially these dishonest wealthy corporate businessmen who already cheat on their taxes. Middle income families that are struggling to get by- do.

I understand the frustration of the Democratic party with the extension of the tax cuts because  they were supposed to expire at the end of nine years. However, Obama is not to blame. The GOP went back on their word and made this their number one agenda. The Republicans opposed every measure Obama took to end the tax cuts so he did what could. I understand he campaigned to end the tax cuts for the rich since 2008 but he has until 2012 to deliver on his promise. Until then, Democrats should understand the compromise is better than nothing.

The U.S. workforce grew a 151,ooo jobs stronger in October 2010 but the economy remains relatively weak with unemployment at 9.6 percent.

“The employment gains were concentrated in the private sector–which added 159,000 jobs – especially in service industries. Temporary-help firms added 35,000 positions; health-care employers added 24,000; and the retail sector added 28,000 jobs. The government sector was a drain on employment, shedding 8,000 positions in October,” according to the Washington Post.

“The fact is, an encouraging jobs report doesn’t make a difference if you’re still one of the millions of people who are looking for work,” Obama said

In earlier press conferences after the GOP took over the house, Obama noted both parties must work together to respond issues that are most important to the nation, the economy.

The president warned against partisan gridlock in the wake of this week’s midterm Republican landslide. “The most important competition we face in this new century will not be between Democrats and Republicans,” Obama said. “…Other countries, like China, aren’t standing still, so we can’t stand still either.”

However, The GOP and the Obama’s weakened administration have their own agendas. The Republicans are determined to repeal Obama’s Healthcare reform and even Senate Minority Leader Mitch McConnell made statements on ending Obama’s chances for a second term.

I feel the possibility of both parties working together is highly unlikely but for the economy’s sake, the two parties must actually work together to turn this economy around.