Sunrises and Tax Cuts: One Sure, the Other Not So Much

<Snark> I do hope you appreciate my efforts this morning. I got up nice and early — more a function of a miniature dachshund who had tangled himself in a sheet than an intention — and took my coffee to the deck and Bid The Sun To Rise! <snark>  OK, it wasn’t this sunrise, which is a stock graphic, and much better than this morning’s cloudy rendition.  Now to the point.   The Rolls-Royce Ticket (Romney/Ryan) has Promised an increase of 12,000,000 jobs!

Right there in the acceptance speech: “And unlike the president, I have a plan to create 12 million new jobs.” [Politicususa]  This would be lovely, except that it is roughly analogous to my claim of bidding the sun to rise; it’s probably going to happen anyway:

‘In its semi-annual long-term economic forecast released in April, Macroeconomic Advisers projected that the economy would add 11.8 million jobs from 2012 to 2016. That means Mr. Romney believes his newly announced policies would add an extra 200,000 jobs on top of what people already expected, or a jobs bonus of about 2 percent. The more jobs the better, of course, but that’s not really much to write home about.” [NYT]

And, actually the President HAS a plan to create jobs — the American Jobs Act. S. 1549 was introduced by Senator Harry Reid (D-NV) on September 13, 2011.  That it has not moved since isn’t a function of “Presidential Leadership,” but of good old fashioned Republican intransigence.

The legislation includes tax cuts and regulatory reforms for small businesses and entrepreneurs.  But, the GOP doesn’t want to move on it.

The legislation includes provisions for preventing teacher layoffs, hiring more veterans, investments in infrastructure projects, public-private projects for rehabilitating local communities.  But the GOP doesn’t want to vote in favor of these elements.

The legislation promotes work based reforms to create innovative ways to retrain, rehire, and re-employ American workers.  But the GOP doesn’t want this to come to the Senate floor.

The legislation also encourages more re-financing of homes for stressed home-owners. But the GOP doesn’t want to talk about this either.  [AJAfactsheet]

The level of Republican intransigence can be measured by the number of tax cuts they passed up in order to block this legislation:

#1. The Republicans rejected a provision which would cut the payroll tax in half to 3.1% for employers on the first $5 million in wages, providing broad tax relief to all businesses but targeting it to the 98 percent of firms with wages below this level.

#2. The Republicans rejected a full holiday on the 6.2% payroll tax firms pay for any growth in their payroll up to $50 million above the prior year, whether driven by new hires, increased wages or both. This is the kind of job creation measure that CBO has called the most effective of all tax cuts in supporting employment.

#3. The Republicans rejected a proposal for 100 percent expensing, the largest temporary investment incentive in history, allowing all firms – large and small – to take an immediate deduction on investments in new plants and equipment.

#4. The Republicans rejected the Returning Heroes Tax Credit of up to $5,600 for hiring unemployed veterans who have been looking for a job for more than six months, and a Wounded Warriors Tax Credit of up to $9,600 for hiring unemployed workers with service-connected disabilities who have been looking for a job for more than six months, while creating a new task force to maximize career readiness of service members.

#5. The Republicans rejected the AJA including the plan to expand the payroll tax cut passed last December by cutting workers payroll taxes in half next year. This provision will provide a tax cut of $1,500 to the typical family earning $50,000 a year. As with the payroll tax cut passed in December 2010, the American Jobs Act will specify that Social Security will still receive every dollar it would have gotten otherwise, through a transfer from the General Fund into the Social Security Trust Fund.

The Mornings After

Gee, and here we thought that the sun will rise in the east every morning, and Republicans will always favor tax cuts.  Yes, the President had, and still has, a specific plan to increase employment in the good old United States of America — but as of October 14, 2011 the plan ground to a halt in the face of Republican opposition in the Senate:

President Obama’s $447 billion jobs plan foundered in the Senate on Tuesday night, as a unified Republican caucus and a pair of Democrats joined to deny the proposal the 60 votes needed to allow it to proceed to full consideration.  [WashMonthly]

Any claims of “bipartisan rejection” of the bill can be waived because the two “no votes,” from Senators Nelson of Nebraska and Tester of Montana, wouldn’t have broken the GOP filibuster of the American Jobs Act.  The cloture motion failed on a 50-49-1 vote. [roll call 160] It takes 60 to break a filibuster and the best the Democrats in the Senate could have mustered was 53.  *Senator Reid voted ‘no’ to be on the prevailing side so he could later offer a motion to reconsider under the rules.

Yes, the bill includes tax cuts, and YES it’s paid for, and yes, the Republicans, in a “unified Republican caucus” blocked it.  Now, we get the vague sound of whining as the sun rises.

The Republicans whine, “but the President hasn’t shown leadership on jobs creation,” an interesting wail since the President presented a piece of legislation all packaged nicely with tax cuts and infrastructure investments.   It really doesn’t do for me to park my pickup across your driveway and then criticize you for not driving your children to school.

The Republicans whine, “the bills are too big and complicated,” but when parts of the legislation are offered in the Senate those are filibustered as well.  This comes perilously close to refusing to eat at the restaurant because the menu’s too long, but when offered items a la carte refusing each one.

According to GOP candidate Governor Mitt Romney:  “The President doesn’t have a plan, hasn’t proposed any new ideas to get the economy going—just the same old ideas of the past that have failed.”  [Prospect]

The Republican complaint would have far more authenticity had they worked with the Democrats in the Senate to pass the infrastructure and rehabilitation portions of the American Jobs Act; indeed, the ONLY specific  jobs proposal on the table at the moment  is the aforementioned American Jobs Act.  Governor Romney’s complaint would have far more resonance if he would offer something besides the trickle down economics of Republicans Past.  Speaking of no new ideas… in the words of the Rev. Al Sharpton, “We got the trickle, but nothing came down.”

The sun will rise tomorrow morning whether I take my coffee on the deck or not, the economy will probably create about 11.8 million jobs even if we do nothing, and the Republicans will filibuster anything from the White House whether it has a package of tax cuts in it  or not — just because it came from the Democratic side of the spectrum.

Perhaps candidates in Nevada’s Senatorial race, and in the Nevada Congressional District races should be asked whether or not they support the American Jobs Act, or even portions of it?  Perhaps it’s time we got some answers that aren’t merely more predictable-as-the-sunrise rhetoric?

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Filed under 2012 election, Economy, Filibusters, Obama, Romney, Taxation, Veterans

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