Obama Turns to the Business Community Instead of His Base

Representative Alan Grayson, a Democrat from Florida, has observed that extending the Bush tax cuts to the top 1% of the country would give an average of $83,000 enabling its members to "buy an $83,000 Mercedes Benz E-Class car, not just once, but every single year for the next decade," he said. "And each year, when they get tired of their brand new Mercedes Benz E-Class car, they can just give it to somebody 'cause they can afford another one. They can give it to a spouse, a sister, a son, a daughter -- anybody. Every single year for the next 10 years, the Republican tax plan is to give millionaires enough money for a Mercedes Benz." President Obama apparently is prepared to give the rich enough to buy only two Mercedes because he has signaled a willingness to limit the extension for only two years. Of course, if the wealthy would spend the money that, at least, would create jobs, but the overwhelming likelihood is that the wealthy would store the money in ways that would be far less productive for our slumping economy.

One might write off Obama’s capitulation to his inability to negotiate as I have done. See http://www.religiousleftlaw.com/2010/11/obama-negotiating-strategy-and-the-bush-tax-cuts-for-the-rich.html. But there is a more disturbing possibility. It is possible that Obama is folding his cards not merely out of a perceived need to get the middle class tax cuts passed, but in part because he has decided to mend his fences with the business community. This is the same President Obama who brought Larry Summers and the like into the White House and the same President Obama who is looking for a Summers clone to replace him. See here. This sounds like an Obama not looking to act on the progressive principles of his campaign and his base, but the Obama, who after regulating Wall Street, is trying to make at least partial amends.

Comments

[Jimbino]

It's more likely that tax reform would return to the wealthy the numerous cars (one Mercedes per year!) that the gummint has been stealing from them every year.

This conceit of liberals that a thief's return of stolen goods represents a gift to the victim is beyond compare in the annals of deception.