PG Editorial: Bad Deal: Obama should have toughed it out on tax cuts

[Divernan]

www.post-gazette.com/pg/10343/1109371-192.stm

The tax cut deal that President Barack Obama reached with Republicans is an indication of his inability to provide leadership in a time of trouble.

The economy is a mess, with high unemployment, growing government debt and a bailed-out Wall Street preparing to pay itself a new round of huge bonuses for the season. This assessment of the United States has been picked up overseas as the U.S. war in Iraq, its failing war in Afghanistan and the Bush-provoked recession that has spread around the globe breed international disrespect and dislike.

In the face of this, Mr. Obama has a deal with Republicans that does a lot for the rich, a little for the middle class and a short-term little for some of the unemployed. The rich would benefit from not returning to the higher tax rates that preceded the Bush administration and from receiving more generous terms on the inheritance tax. Investors would see capital gains taxes stay at a low 15 percent. The middle class -- defined for this tax plan as households with incomes under $250,000 or individuals with incomes under $200,000 -- also would not see their taxes go up as they will if the cuts expire at the end of the month. The Social Security payroll tax would be cut by two percentage points for a year. The long-term unemployed would see benefits extended for 13 months.

Although parts of the deal would put more money into the struggling economy, about 25 percent of the tax benefits would go to the richest 1 percent. Median wealth of the members of Congress is $911,000, according to the Center for Responsive Politics, compared to the $99,000 median wealth of the average American. Mr. Obama's critics, many within his Democratic Party, feel that he caved in again to the Republicans, just as he did on health care reform by not fighting harder to retain the public option.

Read more: http://www.post-gazette.com/pg/10343/1109371-192.stm#ixzz17bRmS9EM

[Divernan]

1. And this editorial doesn't even touch on the poison pill/social security killer.

[Skittles]

2. "bad" doesn't even begin to describe it

it's a fucking disaster