Tax cuts create jobs and improve the economy, but apparently only when applied to the wealthy (according to the GOP).

You’d think that something as simple as :

“The most important distinction between Republicans and the leadership of today’s Democratic Party concerning taxes is not just that we believe you should keep more of what you earn…”

and

“…Republicans will advance tax policies to support American families, promote savings and innovation, and put us on a path to fundamental tax reform.”

(from GOP 2008 platform)

So, imagine everyone’s surprise when we saw the GOP in the U.S. Senate not only filibustering a Democratic plan to extend the payroll taxcuts that will end this month, but also blocking their own party’s plan to do the same.

The classic economic argument from the GOP has always been that if you allow people to keep more of what they earn, they will spend more, and as a result, revenues will increase and more people will be employed due to increased demand.

The Congressional Republicans of today seem to only be interested in protecting the income and stimulating the spending of the wealthiest among us.  The working class be damned.   In fact,  they were willing the risk the severe economic damage that could result from not raising the debt ceiling in order to protect the tax cuts on the wealthiest Americans not so long ago.

So how is it that they justify not helping ALL Americans by extending the Payroll Tax in a severely down economy?  That’s still unclear.   While I disagree that cutting federal jobs for some and pay for more  government employees is better than asking the wealthiest among us to pay an measly 3% in additional taxes, at least that was a plan.   That the Republicans opposed it could be seen as a good sign, if they had not opposed the Democratic plan overwhelmingly as well.

Congressman Jeff Flake (R-AZ) complained that it will take 10 years for the government to recoup the approximately $110 billion in lost revenues stemming from a continuance of the tax cut through 2012.    What else do we hear from Congressman Flake?

Congressman Flake believes that the federal government is far too big and taxes and regulates far too much. He supported President Bush’s tax cuts in 2001 and even offered legislation to make the tax cuts larger. He has since worked to make President Bush’s tax cuts permanent.  (from his own website)

So, extending the payroll taxes cannot be done unless we pay for it.  Fair enough,  even reasonable.   Unless of course you consider that this is coming from the same party who didn’t feel the same way about tax cuts for the wealthiest among us which cost nearly the same.  They are also the same folks that (while in control of the White house and the Congress) wildly spent federal funds consistently expanding the deficit.   Back then, when asked about this they told us:  ”Reagan proved deficits don’t matter.” (Dick Chaney 12/2002).

So, what can we conclude from all of this:

1. That the GOP thinks stimulating the economy is more important than short term deficits?  Nope.
2. That the GOP knows job creation leads to increased tax revenues and decrease public assistance costs?  Nope.
3. That the GOP realizes if people have more money to spend they tend to spend it and that can help by increasing revenues for all levels of government?   Nope.
4. That the GOP care’s about anyone who makes less than 1 million a year? Obviously not.

The GOP in continuously telling us that the government cannot continue running these high deficits.   I doubt anyone disagrees.    However, what they don’t seem to understand is that creating and protecting good jobs like those in Union construction and manufacturing plants are really the key.  You see, the folks working in these jobs earn enough to pay income taxes.   And, unlike the wealthiest Americans (whom they seem willing to do all but die for), they don’t generally spend small fortunes on lawyers, tax shelters, and creative accounting to avoid paying them.

This is NOT rocket science.   If you want America back the way it was, you need to work on taking us back to where we were.  Strong unions protecting the middle-class, a large and vibrant manufacturing industry, and a willingness to actually ask everyone, even those poor helpless wealthy folks, to pay their fair share when times are tough.