WASHINGTON - Ten years after President George W. Bush cut income
tax rates, his decision still remains at the epicenter of debate over
future economic policy.
President Obama, who came charging into office vowing to repeal
the Bush's tax cuts, has been blocked at every turn by the
Republicans, but also by some members of own party who thought it was
insane to raise taxes in the midst of a recession when businesses were
struggling and so many Americans were out of work.
He reluctantly threw in the towel at the end of last year when
the Bush tax cuts were set to expire, conceding that this was "no time
to raise taxes" in a high unemployment economy that was still
struggling to recover. No kidding?
It was a grudging decision made from a position of weakness
after Republicans swept Democrats from power in the House and slashed
their majority in the Senate -- largely on the issue of raising taxes
in a weak economy.
With Congress in a budget stalemate over keeping the government
funded into the next fiscal year, Obama cut a deal with the
Republicans to extend the Bush tax cuts for two more years.
But he hasn't given up and neither have the Democrats in
Congress. He has been campaigning virtually nonstop across the
country, pounding Republicans for their refusal to raise taxes and
once more pointing to the Bush tax cuts as the cause of all our
economic ills.
Obama flies to Scranton, Pa. Wednesday, a 2012 battleground
state where polls show he is in deep trouble.
"He's talked a lot about the Bush tax cuts, but the only thing
he's ever done is extend them, and he's on record favoring many of
them," said economist Douglas Holtz-Eakin, former director of the
Congressional Budget Office who often advises Republican candidates.
After his cave-in on the Bush tax cuts last year, he drew
another line in the sand on the debt-ceiling debate, saying that it
was time for upper income Americans to "pay their fair share." Never
mind that taxpayers in the top income brackets pay the lion's share of
of all income taxes, while the bottom 40 percent pay zero income taxes.
The debt-ceiling battle ended with a compromise on the size of
the budget cuts to be worked out, but the Bush tax cuts survived.
But then the tax cuts came under renewed assault in the Joint
Select Committee on Deficit Reduction that was part of debt-ceiling
deal. After months of negotiations, the panel couldn't agree on a plan
to cut $1.2 trillion in deficit spending over 10 years, and once again
the sticking point was the Bush tax cuts.