Friday, July 22, 2011

Easy Situation for the Democrats

President Obama is ostensibly fighting for the middle-class, but his rhetoric is consistently vague and his past results are disconcerting. For instance, Obama condemned those who wanted to extend the Bush tax cuts prior to the vote in December and continued to condemn them after they were extended. But they were nonetheless extended. And his rhetoric now seems suspiciously similar. He is still using his liberal rhetoric, saying things like:


it's also true that if we tackle our deficit with spending cuts alone, it will likely end up costing seniors and middle-class families a great deal. Retired Americans will have to pay a lot more for their health care. Students will have to pay a lot more for college. A worker who gets laid off might not have any temporary help or job training to fall back on. 

which Obama wrote today in USA TODAY. The December compromise of extending all of the Bush tax cuts did include a substantial amount of money that went towards scholarships and other governmental subsidies. However, at some point Obama and the Democrats need to take a stand against allowing the extension of tax cuts for people that make above 250 thousand dollars. Republicans have already taken their stance, which goes against popular sentiment. The Democrats now have a chance to make their case for the alternative. 

Each party has acknowledged the need to reduce the nation's deficit. The Democrats have a chance to make their case for taking a balanced approach. Paul Ryan's plan is clearly not balanced. It adversely affects the middle and poor classes of America and lowers the corporate tax rate to 25% without any mentions of eradicating specific tax loopholes or expenditures. If Paul Ryan's plan was balanced, he would have enumerated the steps with regards to his reformation of the tax code. 

It is clear that America is apart of a global economy and all economists recommend lowering the rate to 25% for us to be more competitive. However, corporations do not even come close to paying their mandated tax percentage as a collective. For example, GE not only dodged paying any taxes last year, but they managed to receive a 3.1 billion dollar tax credit. This alone proves that the tax system is clearly dysfunctional and needs to be reformed. But Paul Ryan doesn't get into any specifics about tax reform which has the potential to attract a trillion dollars in revenue if done correctly. If his plan were serious, he would have explained to the American public why reducing the code was in America's best interest and how, simultaneously, the government could attract more revenue from corporations by getting rid of an adequate amount of tax loopholes the corporations presently enjoy. Since his hasn't, he has thus proved that his plan is an unbalanced insult to Americans and now all the Democrats have to do is come out with a fair approach to solving our debt and they will come out politically successful. 

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