Obama/GOP Compromise: Bad Deal for Americans

[deacon blues]

GOPers are high-fiving after this recent compromise with Obama. The Democratic Party has lost its cohesion, the Bush Tax cuts have been extended for two more years, and the death tax was reduced from a potential 55% for estates worth more than $1,000,000 to 35% for estates worth over $10,000,000. There's a sense that the GOP had to compromise little: 13-month extension of jobless benefits and allowing the death tax in spite of the lowered rate and higher ceiling.

Truth is, although this deal is better than allowing the tax rates to increase to pre-2001 levels, there's little hope for me that the prospects of our long-term economic health will improve.

First, to extend jobless benefits for another 13 months after allowing them to run for 99 months is crazy. Its blowing a bigger hole in the deficit with unpaid-for spending. Second, to allow any death tax is the most unfair tax that exists, even at a lower rate. You are being taxed on an estate of people who paid taxes their whole working lives, only to have someone steal more of your hard-earned money. Even if it only affects those over $10 million, its unjust. It takes from those who've EARNED their money, RISKED their assets, and who have INVESTED their wealth creating businesses, jobs and industries to fund government entitlement programs and waste.

The GOP should've held out until next year when they could've voted to make the tax cuts permanent, repealed the death tax in total, and forced all new spending to be frozen. Our problems are not short term! We are on a path to an economic collapse like we've never known. I'm skeptical that career GOP politicians understand the realities. I'm afraid that the political class is so deluted by power and money that hope for America to recover is beyond remedy. No one has the guts to really make fundamental changes. We have maybe 2-5 years before the bottom falls out. In the meantime, our government will continue to put Band Aids on our hemorraging economy.

The only difference between Dems and GOP is that had the Dems won in November our demise would be arriving sooner rather than later. Under the GOP it will be a longer, more painful death.

Not a pessimist, just a realist.