Obama wants bi-partisan roll back on tax cuts for the rich

In his 2011 State of the Union address, President Obama called for an end to the high income tax breaks the republican leadership insisted on in the Lame Duck session of the 111th Congress. The reason is simple; the United States cannot afford to give money to the wealthiest Americans while the country is running on borrowed funds. But does the current Republican Congress have the ability to apply fiscal policy that raises revenue through taxes on the wealthy?

Republicans and the Tea Party have made no secret of the fact that they are pro-big business, and believe that trickle-down economics is an effective tool for growing the economy.

Contrary to the rhetoric, there is little evidence to support the benefits of Trickle-down economics for anyone but the rich. In fact, the gap between the rich and poor has grown steadily since the 1980’s, when President Regan began redistributing wealth in the form of tax cuts for Americans with the most income.

Along with Reagan’s economic policies came lower wages for the middle-class and a lower standard of living for millions. Furthermore, Trickle-down economics has failed to create promised jobs. While the Bush tax cuts were in place, America suffered the worst economic recession since the Great Depression of the 1930’s.

In December 2010, republican leadership refused to agree to any extension of the Bush era tax cut package, unless it included an extension of the tax breaks for the wealthiest Americans.

“Former IMF chief economist, Simon Johnson said, the “financial industry has effectively captured our government and is blocking essential reform”.

In what the Obama Administration called a ‘compromise,’ the deal was made with GOP lawmakers in exchange for their votes on the legislation. The portion of the tax cut package that benefits only the wealthy is costing America some $450 billion dollars, all of it borrowed money.

Decades of conservative political pandering to Corporate America has lead to budget deficit chaos, and the Republican controlled Congress may not have the ability to stop giving away money to those who need it the least.

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