Why the GOP Should NOT Compromise with Obama and the Democrats Over Tax Rates
Because it is bad for the economy and job creation.
The Obama administration and members of Congress should study the record on how the economy reacts to changes in the tax code. The president’s economic team has launched a three-pronged attack on capital: They are attacking the income group that is the most responsible for capital formation and jobs in the private sector, and then attacking the investment returns on capital formation in the form of dividends and capital gains. The out-year projections on revenues from these tax increases will prove to be phantom.
Republicans should not be complicit in a bad “compromise” plan in order to save Obama and the Democrat’s collective ass. Rather to let the Bush tax rates expire, re-enact them in January and let Obama take responsibility in vetoing lower marginal tax rates – if he dare do so.