It’s Deja Vu All Over Again

by Sal on February 4, 2012

in Economy,Election 2012,Politics

With the 2012 election looming and signs of a recovering economy, there is one political debate looming that few in the media are talking about that will rear its head in the later part of this year.  This debate will have a significant impact on both of these areas and the outcome of the debate may very well determine the election.  That debate is about the impending expiration of the Bush Tax Cuts.  Let’s look at the picture, shall we?

  • The economic data indicates improvement and signs of recovery
  • The Bush Tax Cuts are going to expire at the end of the year
  • It’s an election year.

This sounds all too familiar.  On February 1, 2010, almost two years ago, I wrote an article on the economic picture at the time.  At that time:

  • The economic data indicated improvement and signs of recovery
  • The Bush Tax Cuts were going to expire at the end of that year
  • It was an election year.
Seems familiar, doesn’t it?  The tax policy debate is going to have a far more significant impact on the economy and the election than most pundits in the media realize.  When Obama and the Democrats agreed to an extension two years ago, they were about as stupid as anyone could be because they insisted on only a two year extension – putting the debate smack in the middle of another election year.  What happened in 2010 again?
  • The debate lingered all year.  The wacky left insisted on the administration making a stand.
  • The economy stagnated and even declined due to the uncertain economic outlook for individuals and businesses and the expectation of higher taxes.
  • Republicans campaigned on the issue, and wound up taking control of the House in one of the biggest electoral swings in history.
I content that history is going to repeat itself.  The left is too stupid to realize that this is going to be an Achilles heel for them.  The Occupy movement has emboldened them to think that by raising taxes, they really are fighting for the “99%”.  As the year goes on, the Democrats will dig in, the Republicans will seize the issue, and the GOP nominee will have a political weapon so powerful that it will send the Obama Campaign into chaos.  If Obama caves and extends the tax cuts, he will demoralize his base just in time for the election.  If he takes a stand, he will lose the center and contribute to a stagnating or declining economy.  Either way, he’s in a bind, and it could very well hand the GOP another electoral victory.
It’s deja vu all over again.

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: