Inadvertent Insights from the Wall Street Journal

The Wall Street Journal reports: "The House approved legislation
Thursday that would extend current tax rates on income up to $250,000
while allowing taxes on higher earnings to rise, a largely symbolic
vote that pointed to divisions among Democrats in the waning days of
their dominance on Capitol Hill.  The bill passed 234-188, but 20
Democrats opposed it -- mostly lawmakers who lost on Election Day and
who agree with Republicans that it is bad policy to let any tax rates
rise amid a fragile economy."

Hook, Janet 2010.  "Tax-Cut Vote Shows Democratic Divide: House Passes
Extension Excluding Higher Incomes, a Largely Symbolic Effort
Reflecting Unhappiness With White House." Wall Street Journal (3
December): p. A 5
http://online.wsj.com/article/SB10001424052748703377504575650901731419966.html?mod=ITP_pageone_1


Are we to believe that giving tax breaks to the super-rich will do
wonders for the economy, or that the people are clamoring to give aid
to those worthies.

What about this Democratic divide?  That only a few right-wing
Democrats remain in the House; that the remaining Democrats generally
oppose Obama and yet get elected.  Their vote was largely symbolic
because most of them know that Obama will cave and they can get credit
for supporting the little guys who make less than a quarter million
dollars a year. Then they can go about cutting benefits for the real
little guys.


-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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