Wednesday, September 8, 2010

Republicans Outflanked by Obama's Tax Plan?

President Obama's tax plan, including allowing businesses to write-off the cost of new plant and equipment acquired before the end of 2011, is a politically bold stroke that may put Republicans on the defensive heading into the crucial November elections.

The Republicans have reacted quickly, but their own proposal lacks detail and may leave some voters feeling that they are engaging in politics and not sufficiently trying to solve what ails the country.
"House Republican Leader John Boehner on Wednesday proposed a two-year freeze on all tax rates and a cut in government spending to the levels of 2008, before a deep recession took hold of the economy.

In a broadcast interview, the Ohio Republican said he was offering a "bipartisan" alternative to the package of business tax incentives and infrastructure spending that President Barack Obama was slated to announce later Wednesday in Cleveland."

Let's hear some specifics from Rep. Boehner on what exactly he proposes to cut in the federal budget (from my standpoint, we can slash pretty much everything, but it's easy for me to say since I'm not running for office). Empty rhetoric won't sway voters.

Boehner's other proposal to, in effect, extend the Bush tax cuts for another two years is sound and deserves the full support of politicians from both parties.

For now, what the country needs is not to be forced to pick and choose between President Obama's and the Republican's recent economic proposals. We need to enact both proposals in order to ensure we emerge from the economic doldrums.

Republicans however should be concerned that failing to support Obama's tax plan will be viewed as obstructionist and worse, possibly an attempt to sandbag the economy, and sour voters on their own ability to lead the country out of the economic wilderness.

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