Dec 9, 2011

Obama Joins the Battle to Save Christmas from the Claws of Festivus

We know that everything Obama has been doing is to win reelection and he's figured that the game is attracting the "floaters" and independents. Therefore, he's been harsh on his core supporters--the progressives--and easy on his opponents. This is not good.

It's not good because it's not a good electoral strategy. The floaters and independents want a strong president, even if they disagree on policy issues--as they did with Bush 43. It's not good because elections are often decided by turnout of the political base. You can't alienate your core supporters then.

The best thing Obama has right now is the declared Republican candidates. Obama's bad luck to be elected during very difficult times, was followed by his indecision and naivete (that he had a partner in Government--Congress), and now his fortune not to be facing credible challengers. This does not mean that the eventual GOP nominee wouldn't have a good chance of winning the presidency if the economy worsened. 

Myth: Taxes on the Millionaires Hurts Job Creation

Why this meme still circulates is amazing and a testament to the Conservative noise machine. Yet, many reasonable people believe that taxes on small business, millionaires, and big corporations are job killers. Businesses pay taxes on the profits they generate, unlike most of us whose entire income is subject to taxation. Also, someone who makes millions of dollars (like an athlete or a lawyer, etc) can be a "small business" if he has relatively few hired workers.

So, NPR went to the Republicans and other groups who oppose the millionaires' tax and asked them to find a person who'd be affected by this new tax proposal. They couldn't get anyone. After a wide search, including postings on Facebook, NPR spoke to a few small business owners, who confirmed what every business owner would say, that hiring new workers happens when there's an expectation of investment return. In other words, if you think expanding means more business, you do it.

Jobs aren't created because a business has cash on hand. Corporations are sitting on trillions of dollars of cash right now. They're not hiring. Why should they when they're under utilizing their capacity as it is?

As to how many small business owners this new millionaires tax would affect? Just 0,01%. And, they can certainly afford this small tax increase. The Conservatives are siding with a few thousands instead of the millions of hardworking Americans whose paycheck withholding deduction will expire if the Congressional Republicans don't vote to extend this by the end of the year.  The Grinch that stole xmas may be real.