Is it too early to declare the grace period over for the Republican party? I mean, the newest members of Congress haven’t begun their session yet. Can we possibly make any judgements on their performance already? Well, technically, the answer is no. However, practically, yes we can. The results are not good.
The deal to retain the current tax rates and extend unemployment welfare is not finalized yet. Yet, simply reviewing what is on the table and supported by the GOP is very telling in what direction we are headed. The GOP does not have the guts to take on the heavy lifting. They are not going to heed the message as was feared. While they may have staved off the Obama tax hikes, retaining the current tax rates is not enough for growth. It’s not permanent at only two years and will only act to stabilize concerns. We need positive incentives to instigate growth. Merely keeping the status quo won’t do it.
Unemployment welfare is confusing. Why would you take the plunge and go into debt further while only assisting some of the people? I mean, if you’re going to do it, why go halfway? Allowing people to bump up to the next tier of federal benefits will still result in the 99’ers extinguishing all of their benefits. If you’re giving away free welfare checks, why are they less important than the rest? If this is done out of principle, it’s inconsistent. Even if you buy into the phony multiplier garbage spewed by Pelosi, why would you leave out the 99’ers? They will spend their $300 just as easily as the rest. It just illustrates that there isn’t any clear logic to this issue.
The of course, we have the death tax. One of the most insidious of all taxes. The GOP may try to sell it as better than it could have been by getting a 35% tax as opposed to 55%. Hogwash. Anything above zero is too much.
Then there are the “sweeteners” like extending the ethanol subsidies. Probably only fitting as this was a Bush creation anyway. It’s just another misguided attempt at government forcing compliance with an alternative technology. Whenever they don’t allow the markets to decide supply and demand, we end up with a subsidy program needing perpetual funding because it can’t stand on its own.
The left claims they gave away too much for this deal. Not everyone on the right has come to this realization yet. It’s a bad deal and needs to die. Particularly if the GOP wants to stay on probation past the first of the year and at least get the new Congress into session before the tea partiers revolt and turn on them. It’s a short leash. That’s the way it has to be. Unfortunately, I think the GOP is already trying to escape it and it is going to bite them.