When the News Isn't Fit to Print ... Blog

Romney Checks Weather, Goes With Tea Party on Tax Deal

In Obamarama, Strategery, The Wrong Right Turn on 15/12/2010 at 08:06

GOP presidential hopeful Mitt Romney woke up this morning, stuck his finger out the window, and decided that he better get on board with Sarah Palin and Jim DeMint on the Obama-GOP tax compromise deal.

With a groundswell mounting against the compromise over the last week within Tea Party circles, Romney was well advised to check the windage.

“In spending $56.5 billion to extend benefits, the deal is sacrificing the bedrock Republican principle that new expenditures be paid for with offsetting budget cuts,” Romney said in his USA Today op-ed this morning.

Romney, who in the past gave Massachusetts Romneycare, had a grueling time walking the fence on same-sex marriage and flip flopped twice on abortion, seemed to be taking refuge deep within the harbor of conservative principals this morning. There is, however, a little time in which he can change his mind.

Seriously, Romney is on the right side of this issue. While no one I can think of wants to see millions of Americans’ jobless benefits cut with no jobs in sight, the nation simply cannot afford to carry the unemployed for another 13 months.

Romney is siding with a growing host of pundits and conservative politicians who doubt a two-year extension of the Bush cuts will inspire confidence to any great degree in industry and small business.

“With only a two-year extension investors know that before their returns are realized, tax rates may be jacked up to the levels favored by President Obama.”

The math here should have been simple. Mitch McConnell and John Boehner moved too quickly to lock in a compromise they didn’t need. Barack Obama was on the ropes, with just two options had Republicans held out to permanentize the Bush cuts: fold or veto a new law to make the cuts permanent in January.

To veto tax legislation that merely locks in rates taxpayers have already been receiving for a decade would be political suicide for the President.

There’s more.

With the actual bill yet to be written, the Obama-GOP compromise is certain to be loaded with a boxcar of spending, and regardless of whose numbers one accepts, will cost taxpayers billions, with no budgetary offsets.

The Obama compromise is essentially a Republican compromise; the taxpayer, in effect, is simply paying to keep what we already have and fueling joblessness in the process.

And for all of this we receive the added risk of losing our cherished AAA tax rating. According to Reuters, analysts at Moody are saying today that if this bill becomes law, it will quite probably adversely affect the federal government budget deficit and debt level. “From a credit perspective,” said Moody. “The negative effects on government finance are likely to outweigh the positive effects of higher economic growth.”

The Obama-GOP tax compromise succeeds in brightening the President’s chances for reelection in 2012 and provides no obvious benefit for the GOP in the House and Senate. The 2010 election sent a clear message to any Republican who was listening: Stop the ridiculous spending and cut back now.

Mitt Romney is right on this one.

Now if he just doesn’t change his mind.

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  1. He’s just another politician…..he goes whichever the wind blows…not my guy!

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