On yesterday's Face the Nation, Bob Schieffer interviewed Senators Dick Durban (D) and Jon Kyle (R) about pressing issues being fought over this lame duck session. Namely, extending the Bush era tax cuts, extending unemployment benefits and the New START treaty. Mostly, the conversation was around tax cuts.
In an exasperating exchange Republican Kyle kept saying 'I don't know why people are referring to these tax RATES as tax CUTS! They are simply an extension of the tax rate that has been in effect for the past decade!'
The sober Democrat just kept referring to them that way, as cuts, while Bob Schieffer caved into Kyle's forcefulness and started calling them rates (he switched back to cuts when the segment with the senators was over).
What is going on here!!!
Why, Senator Kyle, are they called tax CUTS?? I will tell you:
In 2001, Bush Jr. enacted sweeping tax legislation including a bundle of tax credits and tax CUTS. The tax cuts removed some $700 billion from revenue streams into the US budget. This legislation has a SUNSET rule, which means the legislation will expire unless further action is taken by congress.
Why, one may ask, does this legislation have a sunset rule? Because of the Congressional Budget Act, which allows legislation to be blocked if the said legislation has a significant negative impact on the deficit in a ten year term. If the Bush tax CUTS did not have a sunset rule, the legislation most likely would not have passed in the first place, because of the enormous amounts of money it took from the budget.
So, you see, Senator Kyle, tax CUTS don't magically turn into not-cuts just because the said tax CUTS have been in effect for a decade.
Did someone say DEFICIT? Isn't that the hallmark of these newly-fiscally-saved Republicans??? Extending the Bush tax CUTS for the wealthiest of Americans is going to add billions PER YEAR to our deficit.
Now as noted in earlier blogs, I favor tax reform, and not taxing the beegesus out of wealthier citizens, but people NOW IS NOT THE TIME to take such reforming measures. The supply side of our economy is flush with cash, they can create jobs, but there is NO DEMAND. This is not the time for supply side economics to dominate.
Meanwhile, they are blocking urgent legislation to extend unemployment benefits and ratify the New START Treaty. Republican Senator Kyle so much as said so on Face the Nation, commenting that IF they can get tax CUTS for the wealthy, they will consider extending the unemployment benefits (unemployment benefits=demand and providing for the public good. Unemployed would otherwise seek assistance through other government programs).
The New START treaty? Not important, says Kyle.
So much for national security and fiscal responsibility for our born again Republicans. Looks like they are just looking out for their rich buddies. What frauds. Mean, lying Republicans. Are these really the people we want in control of our government? No.
But what about the Democrats? Why are they SOOO wimpy! Where are real leaders??
Rise, leaders, from wherever you may be and help our struggling nation.