This page was last updated on December 16, 2010.
Obama caves in far too easily; Philip S. Dedig; Beaver County Times; December 15, 2010.
Mr. Dedig supported the proposed federal gasoline tax holiday, Hillary Clinton for President, complained about “business as usual” (“Business as usual in D.C.,” 6/17/08) in Washington, DC, regarding energy, opposed offshore drilling, said Democrat voters deserve better candidates (“Local Democratic voters merit better,” 8/22/08), supported “bailing out Freddie Mac and Fannie Mae” (“Fed, Treasury had to move”, 9/30/08), told us we had “No choice but to help auto makers,” told us “College costs must be made affordable,” supported the $787 billion “stimulus” package (here and here), told us “U.S. can afford health care for all,” and claimed “U.S. Rep. Jason Altmire is a Republican in sheep’s clothing.” Mr. Dedig’s most recent previous letter is here. If it’s a leftist position, Mr. Dedig supports it.
Below is a detailed critique of the subject letter.
“The extension of the Bush tax cuts is a ridiculous idea and should be reconsidered.
“This is no more than an extension of the failed policies of the previous administration.”
[RWC] Note the drive-by accusation without providing any details. That’s so Mr. Dedig doesn’t have support his position.
I’m sure Mr. Dedig would like us to believe “the Bush tax [RATE] cuts” are responsible for our deficits, but that’s not true. Before the 2008-2009 recession began to kick in, tax revenue peaked at $2.6 trillion in 2007, an increase of $577 billion (29%) since 2001. Tax revenue didn’t cause the deficits, excessive spending did. All else being equal, reduced rates result in greater economic output subject to taxation and ultimately result in more tax revenue, as we saw from 2001-2007. For example, 40% of a 10” pie is 25% more pie than 50% of an 8” pie.
“A more reasonable approach would be to let the tax cuts expire and reform the entire tax code in the new Congress.”
[RWC] You’ll note Mr. Dedig doesn’t once mention out-of-control spending. That’s because Mr. Dedig likely believes we have a tax revenue problem, not a spending problem. Indeed, below Mr. Dedig supports more spending and doesn’t even want to debate it by calling it a “moral” issue.
“Did those in Washington get the message that the electorate wants to cut the deficit, not to add billions more? The tax cuts would add $900 billion to the deficit, and if these tax cuts were made permanent, it would add $3.7 trillion to the national debt. We would have to borrow a large portion of this deficit from the Chinese, who are our economic competitors.”
[RWC] When did Mr. Dedig get religion about deficits and debt? Review his letters noted above and you find Mr. Dedig had no problems in this area until this letter. The closest Mr. Dedig got to opposing deficits was in a letter supporting the $787 billion “stimulus” package in which he wrote, “I’m not an advocate of deficit spending because it creates inflationary pressure, but sometimes it is necessary.” My response was, “Translation: ‘I oppose deficit spending when Republicans are doing it, but it’s OK for Democrats.’” In his last letter, Mr. Dedig wrote, “The federal government should borrow $1 trillion over five to six years in order to fix our crumbling infrastructure and put Americans back to work.”
Note Mr. Dedig referring to “tax cuts.” The issue is tax rate increases, not cuts. Unless Congress and the President act, current tax rates that have been the law of the land since 2001 and 2003 will go up on January 1, 2011, not down.
Perhaps Mr. Dedig can explain how keeping tax rates that have been the law of the land since at least 2003 can “add $900 billion to the deficit.”
“The extension of unemployment benefits should not be in the bill. Extended unemployment benefits aren’t a political issue but a moral one.”
[RWC] When lefties don’t want to debate an issue, they like to claim it’s a “moral” issue.
“The problem in Washington is we have a weak president. He continually caves in on all major issues, and what is upsetting, he caves in before any proposals are on the table.”
[RWC] Yeah, like when Mr. Obama and Congress enacted programs without a single Republican vote.
“We need a strong president in the White House like Harry Truman. His motto - ‘the buck stops here’ - would do wonders if applied today.”
[RWC] It may surprise Mr. Dedig to learn Mr. Truman didn’t get everything he wanted and had to compromise with both Democrats and Republicans.
© 2004-2010 Robert W. Cox, all rights reserved.