This is a mistake that we will pay for for years to come!

Yes, today is Pearl Harbor day, but the title isn’t what Japan’s Admiral Yamamoto said after the attack (that was in fact, “I fear we have awakened a sleeping tiger and filled it with a great resolve”) — it’s actually what Richard Gephardt (of Missouri), then Democratic House Leader, said about the $1.6 trillion in tax cuts that then President George W Bush singed into effect after stepping into the presidency in January 2001.

Georgie and his buddies the conservatives taunted that the huge surplus amassed under the eight years of prosperity of President Bill Clinton was the result of the American government overcharging the average person in taxes.  So they concocted a tax cut (40% of which was targeted at the wealthiest 1% of Americans) which would reverse the projected $5.6 trillion surplus over the next ten years.

Well, ten years later this country is in the worst economic condition since the great depression — unemployment (even by government figures) is in double digits, and there’s really no sign of substantial improvement on the horizon and there’s a debate about renewing those tax cuts…

For the average American the tax cuts makes no difference; even for fairly wealthy Americans they don’t make much difference — it’s really only for the wealthiest of the wealthy that they tax cuts make a substantial difference; or put plainly, it benefits those who are doing fine — and in the long run may harm those who are barely hanging on.

We don’t have a budget surplus any longer (in fact, I’d argue we never had a budget surplus — we had a debt that we could have, and should have, paid down).

President Obama has proposed a tax plan that will give most Americans the same tax savings that the old Bush plan did, but it will remove the tax cuts that the richest Americans got… but I’m not sure we shouldn’t be finding a more equitable way to tax rather than continuing to convolute the tax laws so that those with wealth and power can twist the law to serve their needs.

Originally posted 2010-09-07 02:00:43.