The corporate media is trumpeting the rumor that Obama was expecting at least 200,000 new jobs in November instead of 39,000 that were actually created. This is really an odd thing that the numbers could be so wildly wrong. The number of weekly jobless claims certainly didn’t suggest that we had turned any sort of corner on job creation. Rather the number would seem to be made up just to embarrass Obama and add pressure for Democrats to surrender to the Republicans holding unemployment benefits hostage.
The surrender being negotiated by Treasury Sec Tim Geithner would extend tax cuts for billionaires for another two years allowing the Republicans to run in 2012 on the continued bad economy as being Obama’s fault for the lack of “certainty” on the part of the job creating rich. Doubtless President Palin’s first priority will be to make the cuts bigger and permanent, assuming that she doesn’t launch the Armageddon first.
As a stimulus to the economy Obama is also going to accept a 2% cut in the payroll tax for one year. This approach to stimulus is only slightly better than giving the money to the rich. The poor who really need and would immediately spend the money will get little and this will be more than offset by the Republicans driving down wages. The middle class will typically get as much as a thousand dollars on average but again their wages are being driven down as well. The upper middle class and the rich however will each get 2140 dollars (twice that for a couple) on the maximum 107,000 that they are taxed on for Social Security and will not spend it.
The total cost of the proposed tax giveaways will cost more than the per year cost of Obama’s stimulus bill and that was one third tax cuts. The Republicans are guaranteeing that there will be no money for real stimulus programs while continuing to drive up the debt. Obama being desperate for the appearance of some success has finalized a truly stupid free trade deal with Korea further driving down the economy and cutting tariff revenue still further.
In a further giveaway to the really, really rich who can structure their income as capital gains, they will continue to pay an absolute maximum of 15% for the next two years. That is until President Palin reduces it to zero as Bush tried to do. While dynastic wealth will resume paying the “death tax” after a year off, the 35% rate on estates over the 10 million tax free exemption is the lowest since the start of the last Great Depression. President Palin will doubtless do away with the death tax and with all the rapture-ing and mass death going on, this will be very popular. www.prairie2.com