A GOP Dilemma: Oppose Obama or Oppose Tax Cuts?

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The 2009 stimulus bill included a tax cut called the Making Work Pay tax credit. Bruce Bartlett writes about what happened last year, when it was set to expire:

At the end of 2010, all of the tax cuts enacted during the George W. Bush administration were scheduled to expire, as well as the Making Work Pay credit. Although President Obama wanted the tax cuts for the rich to expire on schedule, Republicans insisted on an all-or-nothing strategy. Republicans also asked that the Making Work Pay credit be replaced by a temporary two-percentage-point cut in the employees’ share of the payroll tax.

….In short, the payroll tax cut was a Republican initiative. So why did they turn against it? The answer is unclear.

Unclear? Let’s roll the tape:

  • 2009: Obama favored the Making Work Pay tax credit. Republicans were opposed.
  • 2010: Obama wanted to keep the MWP and initially opposed the payroll tax cut. Republicans supported it.
  • 2011: Obama is in favor of extending the payroll tax cut. Republicans are now opposed.

Do you see the trend? Sure you do.

Also of note: Bruce includes a chart from the Tax Policy Center showing why Republicans wanted to replace the MWP with a payroll tax cut in the first place. Partly to annoy Obama, of course, but it turns out that the payroll tax cut is far friendlier to rich people than the MWP. The absolute dollar amounts are small enough to be a rounding error for the truly wealthy, but I guess it’s the principle that counts.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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