In November of 2010 a message was sent to Congress. Some of it came from a group known as the Tea Party and some of it came from simple, ordinary Americans who had never been active in politics before. In some cases, these were the same people. The message was pretty basic--it had three parts--stop the runaway spending, get back to laws based on the U. S. Constitution, and stop taking so much of my income away from me in the form of taxes and fees. There were many variations, additions, and other aspects of this message, but those three points were at the core. Well, here we are five or six weeks later, what are the results of the message? Both parties have the same leadership in Washington, and the current activity in Congress appears to be more of what was happening before the message was sent. I guess they haven't gotten the message yet. The question is, "Will they get it in January?" The answer is, "I don't know."
Yesterday John Hinderaker at Power Line posted an article entitled, "I Didn't Vote For A Christmas Tree." Mr. Hinderaker states:
"For several years, I have assumed that my taxes, and those of many millions of Americans, would skyrocket in 2011. So when I first learned the terms of the compromise between the President and the Republican leadership--most of the Bush-era tax rates made permanent, tax rates for upper-income taxpayers extended for two years, a one-year two percent payroll tax holiday, long a favorite conservative policy--I thought, and wrote, that it was an excellent deal for conservatives."
I agree with him. I didn't think it was an excellent deal, but it was a deal I could live with--everyone got something and no one got everything. Unfortunately the people currently serving in Congress were not content to let the original agreement stand.
Mr. Hinderaker cites an Associated Press article posted at Breitbart.com that describes what has happened as turning the tax-cut bill into a Christmas tree with ornaments. Some of the ornaments listed:
"The tax deal, reached behind the scenes and still informal, now includes ethanol subsidies for rural folks, commuter tax breaks for their cousins in the cities and suburbs and wind and solar grants for the environmentalists--all aimed at winning votes, particularly from reluctant Democrats. ...
"Almost $5 billion in subsidies for corn-based ethanol and a continuing tariff to protect against ethanol imports were wrapped up and placed on the tree Thursday night for farm-state lawmakers and agribusiness lobbyists. Environmentalists won more grants for developers of renewable energy, like wind and solar.
"For urban lawmakers, there's a continuation of about-to-expire tax breaks that could save commuters who use mass transit about $1,000 a year. Other popular tax provisions aimed at increasing production of hybrid automobiles, biodiesel fuel, coal and energy-efficient household appliances would be extended through the end of 2011 under the new add-ons.
"The package also includes an extension of two Gulf Coast tax incentive programs enacted after Hurricane Katrina to spur economic development in Mississippi, Louisiana and Alabama."
There are two things that can happen at this point. This now horrible tax bill can be defeated (as it should be) and all of our taxes can go up drastically in January. At that point, the first business of the new Congress should be to pass a tax law making current tax rates permanent, instituting low estate taxes (the money has already been taxed at least once), and extending unemployment benefits for six months if needed. No pork allowed--no earmarks allowed. If the leadership in Congress does not change its ways, it should be voted out--in both parties. The Republicans need to understand that if they do not start listening to the American voters, there will be a third party--but it will be the Republican party. The energy in this election on the Republican side came from the Tea Party. The Republicans had best remember that.
The other option is that Congress can pass the original bill with no add ons. According the public opinion polling that has been done, that would also be acceptable to most Americans.
There is no third option.
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