As an outsider (I live in Ottawa Canada), it didn't feel good when I heard President Obama make his announcement seemingly giving the Republicans all that they wanted. It was only after a bit of time for everything to digest, I realized, the Reps didn't get everything they wanted and maybe President Obama made a deal that better positioned him to take on the Republicans on the Bush the cut issue.
I have to admit, when I first heard the deal that President Obama struck with the Republican minority I felt deflated. I felt like President Obama “caved” to the Republican hostage tactics and didn’t fight for what he knows is the right thing. The right thing being not to further put the USA in more debt by giving tax breaks to the super wealthy. The feeling was real. If this politician who held out great promise could let down all his people, then I have little faith in other politicians doing the right thing.
But then, as I listened to commentary, read more about the deal and listened to all the words President Obama said when he explained his rationale, it started to make more sense to me.
Had the President held out for a full blown fight, there would only be two possible outcomes – 1) the tax rates for all Americans including the most vulnerable in the nation would rise making things worse, not better. Or 2) the Republicans would buckle and the wealthy would see a 4% increase in their tax rates but nothing else would get done in this session. Furthermore, in an election two years away, no one would remember this fight as only the most pressing issue in 2014 will matter.
And it’s the latter argument that carries the most sway for me. By structuring the deal the way that it is, the Republicans did not get what they wanted which was a permanent freeze of the tax rate for the wealthy at the lower rate, the Bush tax cuts. Instead, it is set to be up for negotiations during the next election. The Republicans will have to defend why the wealthiest of American should get favourable tax treatment while poorer Americans suffer, a fight Obama says he’s “itching to have”. In the meantime, average Americans get further tax benefits from this deal for a short period of time and congress can pass a number of other pressing issues that were being help up by the Bush tax cut issue.
So, my faith in politicians has not been dashed. President Obama’s pragmatic approach may have a silver lining for him and his party come the next election. And in the meantime, the neediest US citizens are spared further punishment.
Blake is Canadian Blogger at Perspective Ottawa by Blake Batson who comments on all things political.