Tuesday, December 7, 2010

Is any deal better than no deal?

Now that Obama and the Republicans have reached a compromise on taxes and unemployment bennies, is this a good deal? Well, sometimes any deal is better than no deal. At least it brings certainty. It's been that uncertainty that has been holding back a lot of investors and business leaders on any plans for expansion.

The market (futures are up sharply as of 7:30 am CST) will most likely rally, creating a lot of wealth, wealth that has been lost in the last two years. The market likes certainty. Though there is no guarantee.

If the tax rates had gone up in January, that would have been a disaster, worse than not extending unemployment, which is of dubious value, unless you've been unemployeed for two years. But with a European-type unemployment system now, how many people are simply choosing to remain unemployed?

So in the light that we have tentative deal, we're good. But it still has to get through Congress, and many liberals there seem upset that Obama compromised on anything.

The cut of 2 percent in payroll tax was a surprise to me, but it would allow the average person ($60,000 annual income) to keep about $1,200 next year.

Some of you out there think that this is a tax cut for millionaires, but that's just stupid. It's just not a tax increase for those making more than $200,000, or $250,000 (why isn't this $400,000, which would be much fairer) for those filing jointly. And the rest of us, as well. Take-home pay won't go down. There are just not enough millionaires to pay off our debt.

But for a husband and wife who each make $125,000, they are not rich, nor are they millionaires. This is just deception. If you've ever made $125,000 a year, you know what I'm talking about. If you are at that point in your life, hopefully, and have kids in college, you're certain not even that well off.

Why should the U.S. government take more of their hard-earned dollars? Because a small minority of liberals -- who are very loud and lie to us every chance they get -- in this country who hate the "rich." It's just a game of deception and dishonesty.

Allowing working people who have incomes -- all working people -- to keep more of their own money is a good thing. If you're a millionaire or billionaire you probably don't care, because most of your wealth isn't in income.

The problem isn't our current tax rates, but spending, which has exploded under the Democrats. But we always knew they are the party of tax-and-spend. This explosion of spending was done on purpose.

So all in all, while not perfect, this deal is better than no deal. I'm just irritated that it has taken this long to reach.

1 comment:

Jim said...

I'm concerned about what deals aere made to get this compromise. Will Reps now help to vote through the Dream Act? Cap and trade? getting all fireman and police unionized? and the list of 100 or so other bills the lame duck liberals want to pass?