The House of Representatives passed a bill which would extend the Bush tax cuts for everyone except the people in the highest income bracket. But the bill would die in the Senate, as many people in Washington argued that raising taxes would hurt the recovery. As such, according to Reuters, in the coming days, the Democrats and Republicans would reach a deal wherein all the Bush tax cuts would get extended, unemployment insurance would get extended, and the Senate would ratify New START. Some Democrats pretended to care about the growing inequality in America.
“There’s a growing concern that the White House won’t fight hard enough for the middle class and will cave without getting much in return,” said one official.
In reality, this was all a bunch of political theater. Just listen to what Obama said today.
“I believe it will get resolved,” said Obama. “That doesn’t mean there may not be some posturing over the next several days.”
Posturing, meaning that the Democrats would pretend to care about raising taxes on the rich and Republicans would pretend to care about out of control government spending. In reality, the Democrats liked the Bush tax cuts as much as the Republicans did, but for appearances sake, they had to pretend that they wanted to raise taxes on people like themselves. And Republicans, despite their rhetoric, liked government spending (e.g. unemployment insurance) as much as the Democrats did.
The main problem with this whole bit of political theater was, how would America pay for all this spending? You guessed it. They had to go to Japan to get the money. Of course, this deal would mean that Japan would have less money to spend on itself. Its recovery would falter. But why would Congress care about that?
Trash till the end.