Thursday, May 24, 2012

Socialists Begin To Crack - Bad For Obama

Socialist former Speaker of the House Nancy Pelosi has broken with President Obama by calling for the Bush Tax Cuts to be extended for all Americans earning less than $1 million a year.  Obama wants the tax cuts extended, but only for those earning less than $250,000.   Obviously, there is a big difference between $250,000 and $ 1 million a year.  It may very well be that Socialist Pelosi has finally realized that raising taxes in a down turn is a road to Recession, or maybe even Depression.   And, just maybe Pelosi and other Socialists are ready to listen and understand that most small businesses file taxes as individuals, under Sub Chapter S rules, not Chapter C corporations.   This means that personal income tax rates are critical to small businesses. 

If Pelosi finally gets it, Republicans could be in a position to cut a deal; not at $1 million dollars; but maybe at something higher, around $3 million before tax rates goes up.   This Blogger is opposed to any tax increase because it will just give government more of our hard earned money to waste; however, it is critical that the Bush Tax Cuts be made permanent as part of the deal to end this uncertainty in our economy, once and for all.   If that were to happen provided the right deal occurs,  it would finally put this topic to rest, perhaps for years to come assuming Obama will sign the bill. 

We will face financial Armageddon if the Bush Tax Cuts are not extended and we don't deal with the National Debt Ceiling before year end and the sooner the better.  We face a mess in Europe and Japan; both of which will implode in the next 12 months.   If we don't have our own house in order, it will be impossible to avoid the negative impact of what is happening in Europe and Japan.  It may be difficult to avoid that negative impact even if we have our house in order; but at least if we deal with making the Bush Tax Cuts permanent and the National Debt Ceiling, we will be better positioned to withstand the financial chaos that will come out of Europe and Japan.   

This is an election year so getting anything done will be difficult.  The fact that Pelosi has broken with Obama may be an indication that she sees the train coming in November.  There is better than a 50/50 chance that Obama will be a one term President.  There is also a very good chance that Republicans will take over the entire Congress.  If Mitt Romney defeats Obama and the Congress is taken over by Republicans, Pelosi probably figures she should strike the best deal now while the Senate is still controlled by Socialists.   If that changes in November and Obama is no longer in office next year, Socialists will have no leverage at all in these dealings.   Congresswoman Pelosi is just playing the game; but it might just be good for our country for a change. 

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