Archive for August 7th, 2011
The Republicans are attempting to blame President Obama’s policies for the continuing recession.
It’s the Republicans’ claim that the cure for the recession is still more tax cuts, because taxation is evil and hurts the economy.
WC doesn’t buy that claim, but it’s instructive to look at the record. President Obama hasn’t raised taxes, despite that Republicans would have you believe. The only tax increase signed into law by President Obama are those relatively minor ones associated with health care reform, and they don’t take effect until 2014. So they can’t be causing a recession; they aren’t in effect for three more years.
Obama agreed to extend the Bush tax cuts for the wealthiest 10% of Americans for another two years. It’s a massive tax cut; presumably it would go a long ways towards making the recession end. It hasn’t.
Personal income tax rates and corporate tax rates are no higher today than they have been for the past decade. The payroll tax has actually been cut by 2 points. Total federal tax collections have dropped by 4 points of GDP since 2007, from 18+% to 14+%, the lowest rate since the Truman administration.
If so minded, you could describe Barack Obama as the biggest tax cutter in American history.
So if tax cuts can fix the recession, why isn’t it fixed already?
David Frum takes it further, refuting other Republican claims about the Administration’s policies and their effect on the recession; it’s worth a read.
None of us can stop politicians from lying. But we can call them out when they do. The business about tax cuts is a lie inside a lie. The Republicans are lying about President Obama’s tax policy. And they are lying when they claim tax cuts will cure the recession. It’s been tried. It hasn’t worked. And the Republicans know it.