The Obama administration may well be the first administration in American history that has effectively admitted that it does not care about a good legacy. We are talking about an opportunistic idea that has been floated by the administration to implement a one-year long, temporary payroll tax cut. The amount of tax cut being envisaged is 240 billion dollars over one year. Given the current Congressional Budget Office projections about how it is very much possible that the Social Security trust-fund can have shortages for periods as long as 50 years in the twenty-first century, this is a dangerous game to play. It is time for the Democratic support base to wake up to some of the myopic strategies that their leaders are resorting to. The current administration inherited a difficult economy, no doubt. However, its policy stances and its policy measures do not look like the stances or measures of an administration that takes its historical role seriously.
The Great Depression produced the legacy of FDR. Is it possible that the Great Recession will produce the legacy of an administration can can be characterized as anti-FDR in many ways ? If economic stimulus is the motive of the tax cuts, and there are serious questions about whether more stimuli will be effective at this stage, income tax cuts alone should be enough. By pushing for measures that can potentially eat into the Social Security trust fund with what looks like an opportunistic and irresponsible payroll tax cut, this administration is now officially a vote-seeking administration rather than an administration that takes its job seriously. These are difficult times. Where does this leave the Democratic voters ? And those who want both economic justice and economic stability ? The answer is – with very few good choices. As a significant portion of the Democratic Party abdicates its historical role, these voters will either be forced to stay away from the elections, or go with a Democratic party that does not show a whole lot of coherence in its policies. As for taxes on the rich, the Obama administration vacillated too long when it came to letting the Bush tax cuts, or a substantial portion of it expire. It is now making some noises about increasing taxes on the rich. But it does not have the requisite political muscle and its efforts in this area have been haphazard and halfhearted. For Democrats, at least, the Social Security trust fund should be sacrosanct. Any tax measures that can potentially deplete this fund or adversely affect its long-term sustainability should be scrutinized carefully by those who vote or tend to vote Democratic in elections.
by C. Jayant Praharaj ( send comments to cjpraharaj.blog@gmail com )
The Great Depression produced the legacy of FDR. Is it possible that the Great Recession will produce the legacy of an administration can can be characterized as anti-FDR in many ways ? If economic stimulus is the motive of the tax cuts, and there are serious questions about whether more stimuli will be effective at this stage, income tax cuts alone should be enough. By pushing for measures that can potentially eat into the Social Security trust fund with what looks like an opportunistic and irresponsible payroll tax cut, this administration is now officially a vote-seeking administration rather than an administration that takes its job seriously. These are difficult times. Where does this leave the Democratic voters ? And those who want both economic justice and economic stability ? The answer is – with very few good choices. As a significant portion of the Democratic Party abdicates its historical role, these voters will either be forced to stay away from the elections, or go with a Democratic party that does not show a whole lot of coherence in its policies. As for taxes on the rich, the Obama administration vacillated too long when it came to letting the Bush tax cuts, or a substantial portion of it expire. It is now making some noises about increasing taxes on the rich. But it does not have the requisite political muscle and its efforts in this area have been haphazard and halfhearted. For Democrats, at least, the Social Security trust fund should be sacrosanct. Any tax measures that can potentially deplete this fund or adversely affect its long-term sustainability should be scrutinized carefully by those who vote or tend to vote Democratic in elections.
by C. Jayant Praharaj ( send comments to cjpraharaj.blog@gmail com )