The Deal: Republicans Got to Comfort the Rich, Obama Got to Help the Rest and Create Jobs
Lawrence Mishel, president of the Economic Policy Institute, comments on today’s agreement between President Obama and Republican leaders on the Bush –era tax cuts, inheritance tax, unemployment benefits, tax credits, and a payroll tax holiday for workers.
Who got what out of the deal is clear. The Republicans got tax cuts for the best-off two percent and lower estate taxes for the very wealthiest families, neither of which will do much if anything to create jobs.
President Obama won policies that will put or keep money in the pockets of the families of the unemployed and middle and low-income families, which will increase spending and create jobs. That’s what a payroll tax holiday for workers, unemployment benefits and the various tax credits will do: create customers for business and create jobs, which is our biggest need right now.
In two years, the American people will have a clear choice about who the tax code will favor. That debate will, I hope, highlight the hypocrisy of those wanting to deepen the deficit by extending tax cuts for the rich while simultaneously cutting health care, Social Security and domestic public investments in the name of deficit reduction.