Lawmakers Continue Fight over Tax Increases

The battle is on in Congress one month after the Congressional Republican victory, and President Barack Obama continues to increase his intent to compromise.

Those who hoped the sky would clear in Washington after the storm of the November 2010 elections will be disappointed, as Congress lives in the chaos of this session’s final days. Of course, the big question everyone is asking is “how are the Democrats reacting?” They are “on the verge of a nervous breakdown,” according to political analyst Mark Halperin. He goes on to assure us that he has never seen such confusion during the twenty-two years he has analyzed the political world. The Republicans, on the other hand, are determined not to drop the ball while waiting to assume control of Congress in January. Placed between the hammer and the anvil, Barack Obama instead chose to visit Afghanistan. It’s almost like having a short break.

The Republicans are convinced the issue of governmental purse strings is the dominant one in any and all tax-related controversies. If voters would ensure their victory in the 2010 midterm elections, it was to be a clear mandate: The American people demand to oppose a tax increase using any means necessary, hopefully preventing the U.S. from becoming a “new Sweden.” Unfortunately, the tax cuts by the Bush administration to give a boost to the economy after the shock of Sept. 11 expire at the end of the year. No wonder why this issue will be transformed into a virtual matter of life and death.

From that point, the main goal for the individual members of Congress is the scoring of political points. One of the bigger tax issues is still the question of increasing federal taxes only for the wealthiest American families, more specifically those earning over $250,000 a year. This is the position that has always been held by 21st century Democrats, who advocate more “solidarity,” a term that has all but been banned in the American vocabulary. This was also one of the promises made by Barack Obama during the campaign. But it will undoubtedly lead to a future denial by the new Congress.

Knowing the Republicans now hold the knife by the handle, the President is trying to, in effect, continuously expand his efforts of compromising. Just this week, President Obama has decided to freeze the salaries of civil servants as a sign of goodwill. Unfortunately for Obama’s supporters, none of his attempts have worked. Of course, there are many other proposals on the table, such as raising the limit on earnings above $1 million per year and letting only the ultra-rich go to the tax collector. There are also proposals centered on ensuring a general extension of tax cuts only for a short time period, while providing that certain provisions at the same time be made for the unemployed.

Even with so many offers and provisions (with most being negotiated confidentially), nearly all of them have been rejected with disgust by the Republicans. The conservatives simply do not want to hear a word regarding higher taxes for the wealthy, citing reasons of “ideological purity” (a term that is very popular in America today). The Democrats would suggest instead that Republicans do not support these proposals because the interests of “millionaires” are also the interests of Republicans.

The inescapable backdrop of these debates, looming over any talks of compromise, remains the issue of the national deficit and the astronomical costs that would result from any of these proposals. In any case, the debates and infighting within Congress continues to rage. In the House of Representatives, Democrats forced a vote this past week, knowing it would force their Republican colleagues to refuse to cut taxes for 95 percent of Americans on the ground that the richest five percent do not benefit. “It’s chicken manure,” proclaimed Republican John Boehner, the future chairman of the House, who was absolutely beside himself about the vote.

But the anger of Democrats and their so-called “hysterical mood” is also directed against the president himself, and the number of his compromises is considered by both sides to be too numerous. Indeed, large groups of Democrats have spent tens of thousands of dollars to launch a television campaign against President Obama himself, a political maneuver that has been practically unheard-of in this era of seemingly endless anti-bipartisanship.

Elected officials should spend the weekend continuing the ongoing fight in Congress. All the while Democrats have warned the Republicans against preventing any progress of other issues that should be closed before the end of the year. Their first priority will be the ratification of the new START treaty, which is the cornerstone of arms control between Russia and the United States.