2016 Postmortem
Related: About this forumThe Myth of the Obama Cave-In
http://politicalwire.com/archives/2012/11/26/obama_didnt_cave_on_bush_tax_cuts.htmlObama Didn't Cave on Bush Tax Cuts
David Corn says the idea that President Obama "caved in" on the Bush tax cuts in 2010 is a myth.
"Obama didn't wave the white flag in 2010. He turned a face-off over the Bush tax cuts into an opportunity to enact a second stimulus that he otherwise could not get past Senate Republicans. His failure at that time was not that he mustered insufficient mettle; he failed to convey to the world that he had ju-jitsued the GOPers."
http://www.motherjones.com/politics/2012/11/obama-fiscal-cliff-budget-deal-bush-tax-cuts
The Myth of the Obama Cave-In
With the "fiscal cliff" looming, the conventional wisdom is that the president capitulated during the last tax cut fight. Here's what really happened.
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http://www.boomantribune.com/story/2012/11/26/124646/18
Should Go Without Saying...
by BooMan
Mon Nov 26th, 2012 at 12:46:46 PM EST
Only morons think Obama caved in his negotiations over the Bush tax cuts in 2010. I thank David Corn for setting the record straight, but it really wouldn't be necessary if there weren't a bunch of progressives running around who are addicted to poutrage and who have no understanding of how Washington DC works. Not only did Obama get a stimulus bill out of the deal (extending unemployment insurance, a payroll tax cut, and a child tax credit), he got renewable energy credits, the repeal of Don't Ask, Don't Tell and the ratification of the New START Treaty with Russia. Without that stimulus, Obama may very well have lost his bid for reelection due to a bad economy, and letting the Bush tax cuts lapse (even for only the top 2 percent) in the midst of a massive recession wasn't going to help the economy in the short term. Part of the progressive argument on taxation is about fairness, but it's also about sound policy. You should raise and cut taxes at different times based on the current condition of the economy. Cutting tax rates is one of the few ways the federal government can help a struggling economy. That's precisely why taxes should not be cut when the economy is doing well. Taxes should be raised when the economy is doing well, and the added revenue should be used to pay down the debt incurred during bad economic times. Related to this, new investments are best made when interest rates are low.
Lugia
(54 posts)leveymg
(36,418 posts)My understanding (and correct me if I'm wrong) is that
First, the 2010 deal extended and expanded existing payroll tax relief through the end of 2012.
The first portion of the plan was a continuation of a preexisting tax breaks that cost $175 billion.
In addition to the payroll tax extension, the "stim" extended $55 billion in long-term unemployment benefits for another year. Again, this did little but leave the status quo in place
which isnt stimulating anything.
Finally, another round of stimulus funding was revenue sharing with the states composed of $105 billion in aid to education, police, etc. and then some $60 billion in additional infrastructure projects (mostly road construction).
zipplewrath
(16,646 posts)They dare not call it stimulus, and that wasn't much of a stretch, especially "additional" stimulus. It was some of the least effective stimulus "spending" that they could do, on top of the 40% of the original stimulus that was also tax cuts. The unemployment benefit extention was the most useful, and it was basically maintaining the status quo. The original stimulus was so weak, they couldn't afford to let even this little bit go.
alcibiades_mystery
(36,437 posts)Luckily, these idiots are much less dangerous now that Obama's been reelected, so we can let them prattle and carry on in their usual way, and not have to worry that their dimbulb antics will take the rest of us down with them.
Cha
(297,818 posts)glad to see it getting highlighted.
Matt Iglesias is writing about this, too..over at Slate..
http://www.slate.com/blogs/moneybox/2012/11/26/lame_duck_2010_tax_deal_obama_s_secret_triumph.html
We need to all work for a Dem House in 2014 so PBO can have support for the Changes our Country needs.
Dubster
(427 posts)Hekate
(90,879 posts)The man is amazing. Needs to toot his own horn a bit more artfully, though.
The wailing and gnashing of teeth, the rending of garments and ashes upon the heads of the mourners have begun again -- in other words, the same people who thought they had been thrown overboard in Obama's first term think the imaginary event is happening again.
We will survive. President Obama will go to work every day pushing that rock up the Hill. I look to his past record to interpret current events, and I see someone who will deliver on his promises in spite of the GOP.
Hekate
Whisp
(24,096 posts)Yes.
Overseas
(12,121 posts)to trample on the 98% in exchange for that.
Both parties need donations from the top 2%.
Both parties are taking a risk by asking the very comfortable to pay a bit more and spare the middle class from more disproportionate sacrifice. It is just that the Democrats started earlier and lost waves of corporate cash for the 2012 campaign.