Unemployment Benefits, Tax cuts with Skyrocketing Deficit

December 17, 2010

By Padmini Arhant

The bill is passed in the Senate and currently making its way in the House of Congress despite the legislation’s long term repercussions on national deficit and social security.

In the deal struck between the current Republican minority and the White House – the deficit spending through tax cuts extension for the 1% wealthiest including estate tax concessions is hailed as a bipartisan victory against the overwhelming public opposition to the reckless compromise.

As stated earlier in the article titled Bush tax cuts, Unemployment benefits and National deficit, December 7, 2010 published on this website – the average Americans are burdened with the liability from the tax credit to the super-rich.

They are being punished for the unemployment benefits extension, child tax breaks and college tuition credits in the bill – the combined costs of these desperately required provisions is significantly lower than the over $700 billion expense from the tax cuts to the top 1% wealthy in the country resulting in the total spending of $858 billion added to the skyrocketing national debt.

The two year tax cuts to the affluent members in the society are expected to become permanent and the social security with payroll tax holiday targeted for privatization potentially wiping out the only safety net for the retirees while the retirement period prolonged to offset national spending.

It is a remarkable win for the Republican minority soon to be the majority in the House with further representation in the Senate.

Unfortunately the voices for the average Americans in Congress are drowned by the political agenda to implement policies aimed at gains in the short-run with no due concern for future ramifications on the fiscal irresponsibility.

The strange partnership with similar motives is a sheer betrayal having been elected with the overwhelming democratic base votes and thus far delivering to the campaign financiers in Wall Street and military industry complex.

Beginning with Health Care Reform – the mandatory health care subscription without reining in on the health insurance industry and Bigpharma protocol alone is a huge setback for the vulnerable majority – the sick, the middle income and the senior citizens.

Likewise in the financial sector regulation – the $19 billion tax exemption to Wall Street – the primary source for the global economic recession is a major boost to conduct business as usual weakening the regulatory impact.

The Republican vote favoring Wall Street sought by the White House against a democratic vote seeking robust measures blocking loopholes to avert repeat economic disaster is disillusionment and disappointment for the electorate anticipating real change that also in part contributed to the midterm election outcome.

In the areas of warfare and foreign policy – the Bush-Cheney hawkish strategies vigorously carried out tarnishing the national image and seriously jeopardizing credibility in the international domain.

Now with the Bush tax cuts agreement to protect the wealthy is an affirmation of the ideological priorities substantially affecting the national deficit in addition to widening the gap between the haves and the have-nots.

It is clear from these developments that democratic aspirations in terms of industry regulation, effective economic policy, peace and diplomacy against nuclear threats continue to remain far-fetched objectives when acceding to Republican demands and upholding oligarchy principles – profit by any means even if it is proved detrimental to vast population and national interest.

Considering the status quo the only hope to restore democratic values and pragmatism is the substantial public participation in the legislative process through various communication channels conveying the message not only to their elected representatives but also the executive branch for the evident complacency.

Only the citizens’ will to enforce change at the political, economic and social fronts could lead to desirable progress in a democratic system.

Democracy is functional when the government of the people committed to the electorate entrusting power for collective actions benefiting all rather than the privileged members in the society.

History is testimony to the fact that people power never failed in challenging any rule other than the republic.

Thank you.

Padmini Arhant

Written by Padmini Arhant · Filed Under Economy 

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