Monday, December 6, 2010

A Step in the Right Direction

Today, the Republicans and the White House took a step in the right direction by announcing a compromise plan that would ensure no American sees higher taxes on New Year's Day 2011, and that 2 million unemployed Americans don't loose their unemployment benefits in 26 days. While the plan fails to provide permanent tax relief, it is certainly a step in the right direction, and would provide for a two year period to allow the economy to improve and a plan to be created to reduce the deficit without increasing the tax burden on the American people. The plan also provides tax incentives for businesses to make more investments and to hire more employees. "It’s not perfect, but this compromise is an essential step on the road to recovery. It will stop middle-class taxes from going up. It will spur our private sector to create millions of new jobs, and add momentum that our economy badly needs," President Barack H. Obama said.

Some Democrats are, unfortunately, opposing the new compromise. "To say that I am disappointed with the deal the President laid out tonight is an understatement," said Senator Tom Harkin of Iowa. Representative Chris Van Hollen of Maryland made it a point to state that "House Democrats have not signed off on any deal."

Earlier this week, it was House Democrats who criticized the Republicans for not passing middle class tax relief. Now that their fellow party member, President Barack Obama, has worked out a compromise with the Republicans to provide a tax cut to the middle class, help create jobs, and extend unemployment benefits, it the Democrats should be fully on board. I suspect that the compromise plan will pass in Congress, as many Democrats will realize that it would be unethical to allow their constituents to face a tax hike next month, and will back President Obama when the recorded vote (roll-call vote) comes up.

1 comment:

  1. Some say that we should not give millionaires tax breaks... but if we give millionaires more money to spend into the economy, it helps business. Also, if a millionaire saves $50,000 on taxes, they can use that money to hire someone to drive them around or clean their house or something. Millionaires create jobs.