The Eclectic One

…Because labels are a poor substitute for thinking

Senate to insert tax breaks into bailout plan?

Posted by Bill Nance on October 1, 2008

After eight years of systematically destroying the U.S. economy, it looks like Republicans aren’t satisfied with the damage. The cause isn’t hard to figure out: Spending that would make a drunken sailor on liberty blush, combined with massive tax cuts for the top 1% of earners and businesses will break the bank every time. -Duh.

And now that the country is in a financial crisis, Republicans’ idea of addressing some very specific problems, namely liquidity among banks and the related credit crunch, is to what? You guessed it, more tax reduction.

From the NY Times:

The lawmakers were gambling that the tax package would appeal to lawmakers who helped sink the measure in the House on Monday, without driving off Democrats who have opposed extending the tax incentives without offsetting spending cuts elsewhere…But House Republican leaders, who said they had been advised about the Senate plan, said the new elements would appeal to their rank-and-file, which voted strongly against the legislation Monday. A spokesman for Representative John A. Boehner of Ohio, the Republican leader, said that “Mr. Boehner was consulted and gave the green light.”

Pelosi and Reid: Democrats have a majority in both houses of congress and the President is desperate for a bailout. Load that sucker with the things that will make your rank and file happy and pass it on a party-line vote. Dare the president to veto it.

If the Republicans are going to dick around with tax cuts in order to “play ball” then screw ’em.

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2 Responses to “Senate to insert tax breaks into bailout plan?”

  1. […] Three words: Told ya so. […]

  2. Bryant Arms said

    I wouldn’t be surprised if the recent overhaul of bankruptcy legislation was designed for this economic situation; it turns human debtors into indentured servants. And that is necessary for the following reason:

    The ’sssssss’ we are noticing with this credit crunch is just the leak before the big burst. This credit bubble has been inflated by a logorithmic base 10 scale of dollar creation.
    The practice of using 90% of ‘real’ wealth for lending that can then be invested and re-deposited for recycling again and again for more and more credit probably has the same effect of simply printing more money. The difference between those two ways of creating wealth is that creating money by credit inflation redistributes wealth for the benefit of financiers. And printed money is real; not fake.

    This credit bubble burst should, then, be creating a shortage of money. And the cure may be as simple as the government printing more money. The only problem with that scheme is that there would not be another bubble to burst to correct for over-inflation. Printed dollars don’t evaporate away like the ones the financiers are trying to sell taxpayers now.

    And that is why those who have engineered this bubble need those new draconian bankruptcy laws. Only wage earners can turn this fake money into real wealth. And that is why the Bush administration and other supporters of the great bailout plan are adamantly against giving bankruptcy judges the right to restructure debt according to who is most responsible for making bad loans.

    Bryant Arms

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