First, about the Norquist statement of yesterday. It is all just bovine scatalogy. He knows it isn’t a tax increase. Still, Republicans heard the voice of their god yesterday and bowed down in abject stupidity. It is simple, they will just expire. If they simply do nothing, they will expire at the end of next year. Obama caved once and let them be renewed, gutless wonder that he can be. One can only wonder how much more he will give the Republicans. That though is for another post.
When Republicans took control last year, they promised to creat jobs. This was their primary platform. To do this they also promised no new taxes, and to continue to cut taxes for corporations and the rich. As said above, Obama caved, and let the teapublicans have their way and win that round. The Bush tax cuts of 2001 and 2003 were renewed.
Their theory? Giving huge amounts of money to big corporations and the wealthiest would enable them to invest in new businesses, expand existing ones and bring greater prosperity to the rest of us. Has it worked?
Now, then years later, we should examine what has happened.
When the last round of these cuts were passed in 2003, the administration, that’s George W., predicted that, by the end of 2004, they would create 5.5 million jobs. Even George, admitted that, even without the tax cuts, the economy would most likely add 4.1 million jobs.
The result? 2.6 million jobs. In fact, the job creation record of George’s first term was among the worst since Hoover. The numbers are even worse than they appear since many jobs came from increased military spending on wars in Afghanistan and Iraq.
Housing and real estate were the most robust sectors of our economy. They were not fueled by big tax cuts, but by a windfall of home equity loans and other easy money. We know how that worked out.
By the end of George’s second term, the lemmings went off the cliff, and when he left Washington, unemployment was flying high at 10 percent.
So where did the money go that was to be invested? It went to places like hedge fund and derivatives. Places that only make the rich investors so much richer. It does nothing to create real value for our economy.
In 2003, more American money was invested overseas than was in the U.S. Those tax cuts did in fact create jobs — in China, Brazil, India, Germany and elsewhere, but not one here. These tax cuts have cost us $2.8 trillion.Add the cost of the wars [$1.5 trillion] and we could clean up our current crisis.
During the past days, the Republicans have said “everything is on the table” in their so-called budget negotiation — everything that is but any tax increases on the wealthiest.
Still, we continue to hear the same song: Tax cuts create jobs!! But obviously, in the past 10 years, they haven’t. Unless you are looking for work in China, India………?
Update: Cantor said today, “We’ve done our job. We’ve sent jobs bills to the Senate.”
Update: Senate kills Rep. Jim Jordan’s Cut, Cap and Balance bill.
The lunatics seem to be in charge of the asylum.