Will Obama's patience with GOP tax cuts wear thin soon?

Anissa Ford's picture

CNN host and former NY governor Eliot Spitzer says that President Obama would likely deny it, but the GOP tax cuts are a total triumph for Republicans.

In a Slate article, Spitzer said the "massive tax cuts for those at the top" and the freeze on public spendng is a triumphant victory for the Republican agenda.

Sptizer prognosticates that within a few months, President Obama will announce that he's tired of the GOP experiment with tax cuts on the wealthy. Obama, he suggests, should then revert to the Clinton model of increasing taxes on the segment of Americans whose yearly earnings exceed $200,000.

And why not, Spitzer argues. When Clinton did it, the economy flourished.

Obama, Spitzer plainly states, should realize that a reversion to the Clinton model is necessary since the $2 trillion that business owners have retained in earnings has not been recirculated back into the economy.

The tax cuts extended to businesses by President Obama are far wider than President Bush's. And Spitzer states it's not surprising those Bush era tax cuts are failing the American economy and the majority of American people.

He exampled Newt Gingrich's tyrannous but erroneous prediction that Clinton's tax increase on Americans with salaries over $200,000 a year would put the country back into a recession.

Spitzer immediately points out that after the Clinton tax increase on the rich, the country experienced "seven years of phenomenal growth, 23 million jobs created, and surging tax revenues that left George W. Bush with a budget surplus in 2001."

The unemployment rate during that time dropped from 6.6 percent in January of 1994 to 4.2 percent in January 2001. Spitzer, however, does not mention the dotcom burst widely credited for job creation during the Clinton era.

Spitzer says Bush era tax cuts are increasing the enormous deficit. Fortunately, the deficit is a problem that both Republicans and Democrats agree needs resolution.

Current reports suggest that in order for the US to break out of its economic slump, then 150,000 jobs need to be created every month. But Spitzer does not address whether or not the $2 trillion that businesses are sitting on is enough to create the necessary number of jobs to pull the United States out of its economic slump.

He does note, however, that help is not on the way and the 36,000 new jobs created in January indicate the onslaught of another very bad year.

Obama has taken measures that are similar to NAFTA and those negotiations that are expected to improve employment. But as with the Bush era, critics have noted the Obama, like Bush, has a close eye on China's currency policy, whereas a more liberal Clinton did not need to focus on it because he enjoyed a strong dollar value in his era.

And while Spitzer praises the Clinton model, all the while ignoring the dotcom rush, Spitzer also did not mention the health care argument that loomed in the Clinton era and manifested with Obama.

In an of assessment Bill Clinton's economic successes, John Tamny, noted that Hilary Clinton, as the incoming First Lady, wanted to created a national healthcare policy, but vehement opposition to the very idea scared voters into dividing power between Democrats and Republicans.

Today, Republicans and Democrats are deeply divided over the health care reform bill. Ironically,citizens in Republican states are benefiting most from health reform and income tax laws. But it appears the backlash of business owners affected by the payroll tax changes associated with mandatory health care, even during a recession and low unemployment, have burdened future hope for the bill's life expectancy with strong vocal opposition to House legislators.

Many expect the economic recession will improve. But they also believe that taking proactive measures to improve the economy is a better than idly waiting for the economy to improve,

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