The media, and most republicans, can't get their head around the idea that to stabilize and rev up the economy we need both deficit spending now and a plan for reducing the deficit starting in at least 2011. And the Blue Dogs, responding to the needs of special interests under various principled guises, attack the President's proposals to tweak Federal Income tax deductions as part of that deficit reduction plan. These Blue Dogs don't seem to care that the proposals reduce deductions to Reaganite levels, nor do they care that their attacks undermine the essential confidence building effort that lies at the heart of the President's strategy.
The Federal, and State tax codes, are a total mess because they don't treat like people equally or like income equally, they are used to favor special interests in the name of policy (as opposed to just collecting revenue in an economically neutral manner) and they are easily gamed by the affluent. The President's changes, while too little for most of us, need to be shown to be moderate in light of what really is going on with taxes in this country. Let's get the word out!
Read More