When Admiral Ackbar realized he had brought the fleet into a trap, it was already too late. This is what Obama did by stating he will support the extension of the Bush Tax Cuts. Obama said he didn’t have a choice and that the Republicans are holding the American people hostage.
It’s a trap. Obama wants to extend the Bush Tax Cuts for all, for another two years.
It won’t change a thing.
Extending the Bush Tax Cuts will not help the economy. It will not reduce unemployment. It will continue the economic malaise brought on by Obama’s reckless policies of spending for another two years. There are several reasons why extending the Bush Tax Cuts will not work.
Businesses forecast their business model usually 5 years out. A two year extension only continues the uncertainty in the business climate. Think of it this way, you have a business, you lease a building, but the lease is only good for two years at a time. You cannot even unpack the boxes, without knowing if you’re staying or going. You have no idea if the lease cost is either going up, staying the same, or going down. Businesses can’t operate without a way to forecast and plan for the future. If employers hire people to grow and expand their business, and if taxes go up, employers may have to lay off their employees. Then the employer has to pay part of the unemployment insurance, there may be a severance package. Why would the employer take the risk?
Democrats, as always, never see past the obvious. Instead, Democrats are focused only on raising taxes on anyone making more than $250,000 a year. This is what democrats refer to as the rich. You have Senator Bernie Sanders (Communist-VT), along with a whole slew of short sighted democrats, having a collective Congressional hissy fit. What’s worse are the other hidden taxes within the proposed bill.
You’re extending the tax rates, but not eliminating the uncertainty. However, Democrats are going to do everything in their collective idiocy to try to stop this from passing. Republicans should use the opportunity to make the Bush Tax cuts permanent. Additionally, Republicans should include a reduction in the Capitol Gains Tax, the Payroll Tax and Corporate Taxes. I don’t know why Republicans haven’t taken advantage of this opportunity.
Extending the tax rates for two more years will not improve the economy nor unemployment. We knew the lower tax rates were scheduled to expire at the end of this year. However, Democrats seem hell-bent to increase taxes, the economy be damned.
So what we are going to see, is another 2 more years of 9.8% unemployment, or higher, and a economy stagnate in growth.
Giving Obama reason to again blame Bush, and claim tax cuts for the rich didn’t work. And that’s the trap. By design, Obama is setting up to blame his bad economy on the Bush Tax Cuts.