"An era can be said to end when its basic illusions are exhausted." - Arthur Miller

Friday, July 28, 2006

Minimum Wage Increase as a Cost

Republicans have indicated they are willing to pass a 3 year phased on plan to boost minimum wage to $7.25 an hours. The cost though is to make GOP passed tax cuts permanent. This includes tax cut on multimillion-dollar estates, R&D credit for business and deductions for college tuition.

For a 8 trillion dollar deficit and supposedly being the party of fiscal responsibility, the Republicans are doing an outstanding job of not seeming to give a crap. If you want tax cuts, cut spending. Iraq and Haliburton contracts seem like a good place to start. I don't really understand what is complicated about the equation.

Also, can republicans actually pass laws that don't give tax cuts for their wealthy benefactors? Is there some oath that they are taking that prevents them from doing that?

Do have to admit the plan is devious and smart. The democrats try to vote against the bill they will have to deal with "flip flop" comments of the "I was for it before I was against variety." They can speak to Kerry about how easy it is to explain that to the public.

However, if the Democrats make enough show of passing the law, how they are doing it "for the people", "for the poor" and so on and so forth, they can use the tax cut riders combined with the deficit to rake the republicans over the coals with the bill. I guess time will tell how this will play out but it sounds like its going to be a Republican victory.

(source)

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