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Joseph A. Palermo

Joseph A. Palermo

Posted: December 15, 2010 01:32 PM

Tax Deal Will Normalize the Bush Era

What's Your Reaction:

Taken in isolation the "bipartisan" tax cut deal seems like a reasonable measure in the midst of a serious economic recession. But put in its wider political and economic context it is an unmitigated disaster. It's a disaster because it is based on "supply-side" premises that Obama appears to have fully embraced. And it's a disaster because the wrecking crew that's coming to Washington in January will point to the billions added to the deficit as yet another excuse to demand even deeper cuts in every federal program that might remotely benefit working people.

Any "gains" in income for most people the tax breaks might create will be more than nullified by the draconian cuts in health and human services, education, even infrastructure projects that are certain to follow. At the state and local level there will be more lay-offs of public employees, more shutting down of public sector institutions, more budget cuts, as the onslaught against any program that might improve the living standards of working people escalates.

Worse still, the tax deal drives a bulldozer right through the middle of the payroll tax stripping billions out of Social Security and Medicare that will be used to justify even more cuts. The Republicans will demand that the payroll tax reduction be made permanent -- and Obama will give it to them. Younger workers will be funneled into 401ks manipulated by Wall Street, the retirement age will go up, COLAs will be a thing of the past, and the monthly stipends of the elderly, the disabled, widows and orphans, will be reduced.

It's not surprising that the Democratic base is outraged and disappointed. Obama raised expectations to a new high in 2008 with his soaring rhetoric that sounded at the time to be a clarion call for a reaffirmation of core liberal-Democratic values (after so many years in the wilderness and the country suffering for it). People didn't put their faith in Obama, but their hope; and hope is a much more tenuous bond. They feel betrayed because they didn't think they were voting for business as usual in Washington, but business as usual is what they got.

Whatever President Obama accomplished during his first two years in office, with most of the heavy lifting thrown on Nancy Pelosi's shoulders, his decision to normalize the sweeping changes in American governance of the George W. Bush period will likely neutralize any lasting positive effects for Democrats.

Even George W. Bush conceded that Wall Street "got drunk." Yet somehow he passed the hangover onto us. It turned out to provide the perfect context of crisis for rolling back social programs the Republicans never supported. Sweet.

Bush was never a "conservative." A conservative would have repealed the tax cuts after 9-11 created new challenges from international terrorism sure to cost billions, as well as the need to rebuild New York City and the Pentagon and reform the national security institutions. The tax deal of 2010 is a bizarre "bipartisan" enshrining into law of Bush's fiscal recklessness of 2001.

Obama has normalized the Bush era by accepting his premises about the "war on terror," failing to close Guantanamo or hold anyone accountable (even John Yoo) for torture. He normalized the Bush era by escalating Bush's futile counterinsurgency war in Afghanistan, making it all the more difficult for the United States to disengage later on. And now, if the "bipartisan" tax deal goes through he will normalize (and even institutionalize) Bush's supply-side economics that never ceases in its drive to bestow boons to the richest people and corporations in the country.

Bush's tax trap set nearly a decade ago sprung right on schedule to ensnare a Democratic president. It's slightly ironic that a President who big corporations have targeted with hundreds of millions of dollars to destroy would turn around and give them and their CEOs everything they ever wanted. Stuffing more cash into the already bulging pockets of billionaires and millionaires, after a 30-year period that has created Gilded Age levels of inequality, is unwise public policy sure to come back to bite Obama later. Yet he skips happily into the mouth of the wolf.

 
 
 

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HUFFPOST SUPER USER
mosh
09:04 AM on 12/17/2010
since this is clearly a one party oligarch masqueradi­­­ng as a two party democracy here's a wacky idea on how to shake things up - let's all join the republican party - !!!!

seriously, think about it - most posters here despair of ever truly changing the system - so let's give these washington a-holes a jolt - let's expose this government for what it is - let's make true what is true - this is a one party system and that system is primarily republican­­.

seriously - i know this sounds wacky - but if every progressiv­­­e switched parties the jig would be up - the system would be exposed for what is - a corrupt piece of bull---t.

this would be similar to the 'move your money campaign' if we all switch parties we will send a message to both sides maybe the dems will then take us seriously. if we do it well ahead of 2012 that will give them a fright. and all those right wing a-hole pundits will be stuck without a straw man to kick around - we will agree with everything they say - let's put an end to welfare,th­­­e middle class, heck, let's call it what it is and bring back debtors prison and slavery while we're at it. let's agree with them and then some. i am serious. the worst that can happen is that the country falls faster - and the revolution comes sooner - talking, marching, tenting doesn't work
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
02:47 PM on 12/16/2010
"Normalize the Bush Era"

I think that's a pretty good description of the  Obama legacy.
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HUFFPOST SUPER USER
Jerry Vasquez
A Unapologetic liberal
12:09 PM on 12/16/2010
As sad as it is to say, I have to agree on all counts. What adds insult to injury is that a Democratic
president will finish what a republicans president could not. How all of this is happening is just
another twist of the knife in the backs of liberals.
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HUFFPOST BLOGGER
Joseph Palermo
Huffington Post Blogger/Author/Professor
11:46 AM on 12/16/2010
Readers, if you liked this short blog, you should read Death of Liberalism, yow!
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The Lone Stranger
Yes, I am a lousy typist. OK!
10:52 AM on 12/16/2010
Picture a boxing ring. In one corner is Big Business and the Super rich. In another corner is the American people. Fighting for the rich and Big Business is a season well tained musculart fighter named GOP. Fighting for the American people is a skinny black guy who has never set foot in a boxing Gym, let alone won a fight, his name is Obama.

Somehow at the start of the match when both sides shake hands, Obama gets it into his head that he is supposed to be the referee and find a peaceful way to resolve the dispute that leads both sides happy. GOP shook his hand! What better proof does he need than that.

So when the bell rings, he walks across the ring with his hand outstretched for another handshake only to be punched in the face. Again and Again. He asks GOP what it will take to stop being hit, and Obama is eager to surrender, and then he returns to the corner proudly declaring that he has negotiated the best possible deal under the circumstances. Dazed and confused he seems to have forgotten who he was supposed to be fighting for, if indeed he ever knew that at all.

I hope we can persuade him not to seek relection in 2012 because the need for someone to fight for the American people has only gotten larger thanks to Obama.
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HUFFPOST BLOGGER
Joseph Palermo
Huffington Post Blogger/Author/Professor
11:39 AM on 12/16/2010
Yes, there seems to be little fight in him
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HUFFPOST SUPER USER
TRex86
Enjoying life in West Ohio
11:58 AM on 12/16/2010
Excellent imagery. F+F.
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AZreb
equal-opportunity Independent heathen
09:47 AM on 12/16/2010
Let's add to the "normalization" that Gitmo is still up and running, rendition is still practiced, the war in Afghanistan is going to last at least until 2014, taxes cuts remain for millionaires, more mercenaries hired by the government - and there are probably more programs and policies left from the Bush years that are continuing.

Will repeal of DADT pass? Who knows - if not, that can be added to the list.
Democrat in the South
Empathy, the most important word
09:20 AM on 12/16/2010
I keep thinking about the new forward(in 2010) in Naomi Klein's 10 year old book "No Logo". She said Democrats will be disappointed when they realize Obama is just a corporate shill. I so 'hoped' she was wrong. Not looking good.
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HUFFPOST BLOGGER
Joseph Palermo
Huffington Post Blogger/Author/Professor
11:41 AM on 12/16/2010
Yes, I too tried to give Obama the benefit of the doubt, even arguing against the views of some on the Left, as any good historian I was uncomfortable passing judgment until some time in office went by, a year is not long enough to judge -- two years? Well, there's a disturbing pattern here, I think the naysayers were probably right.
Democrat in the South
Empathy, the most important word
12:00 PM on 12/16/2010
If Obama is really a Republican, he made fools of us all. And we will NEVER be able to trust a politician again.
08:55 AM on 12/16/2010
He's not on our side. Some smart banker decided that only a Democrat could deliver the wrecking ball policies they wanted, and so they annointed the neophyte Obama, witting or unwitting. Bush could never attack Social Security, but everyone trusts the Dems on that issue. Ha.

The true give away that Obama is really a Republican in Democratic clothing is his financial crew. Essentially, Geitner/Summers are Obama's Carnegie (Hoover's secretary of the Treasury).

And everytime it looks as though the left might actually choke on one of Obama's "compromises," the far right starts its chorus so that the radical giveaway really appears very moderate. And right on schedule, the Tea Partiers are beginning to bray.

All I can hope is that history repeats itself and after fours years of Obama (Hoover) another FDR will be voted in. But somehow I doubt that.
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HUFFPOST SUPER USER
thecreeksedge
08:29 AM on 12/16/2010
Nancy Pelosi and the House should deal with the tax issue the same way they dealt with DADT. Have stand-alone votes on key components of the horrible compromise worked out between the White House and Republicans. Introduce and vote on separate bills that would (1) extend the Bush tax cuts for levels of income below $200,000 for individuals and $250,000 for joint filers, (2) restore the estate tax to its previous levels, (3) extend unemployment compensation and so forth. Let the Republicans show where they stand on these important questions and, if the strategy does not succeed, at least make a record that would allow the public to see where individuals and the parties stand on these important questions.
08:22 AM on 12/16/2010
Yep. Well put, Joe. Sadly.

I cannot add to it as you took the words right out of my mouth.
07:08 AM on 12/16/2010
great article Joseph . . . . what is Obama? and who is actually advising him? particularly loved the last para: "conclude: "It's slightly ironic that a President who big corporations have targeted with hundreds of millions of dollars to destroy would turn around and give them and their CEOs everything they ever wanted. Stuffing more cash into the already bulging pockets of billionaires and millionaires, after a 30-year period that has created Gilded Age levels of inequality, is unwise public policy sure to come back to bite Obama later. Yet he skips happily into the mouth of the wolf."

talk about committing political suicide and taking what is left of America with you . . . so much for change we can believe in . . not
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HUFFPOST BLOGGER
Joseph Palermo
Huffington Post Blogger/Author/Professor
11:41 AM on 12/16/2010
thank you
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undertheinfluence
POW in my own home country
11:55 AM on 12/16/2010
what is Obama?

Appently. Bush reincarnated.
05:26 AM on 12/16/2010
What the majority writing about the betrayal of Obama to the Dems, Progressives and Liberals fail to realize is that he was not any of these. He is the next best thing to a Far Righter the GOP has ever dreamed of--He is giving them all (And more) than Bush 2 ever considered. They should be running his name up the flag pole and saluting it as well as holding him up for '12 as one of their own. What you see is what you get and Obama is not a pretty sight for hard working Americans. His goal now is to privatize SS and destroy it completely. Something the GOP has never been able to do.
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HUFFPOST SUPER USER
PerryLogan
We don't want your guns. We just want your women.
09:05 AM on 12/16/2010
Couldn't have said it half so well.
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HUFFPOST BLOGGER
Joseph Palermo
Huffington Post Blogger/Author/Professor
11:42 AM on 12/16/2010
yep, who knows how far he'll go in pushing through the Right's agenda
04:34 AM on 12/16/2010
Most people won't wake up UNTIL it is too late.

****My own sister listened to Obama's speech on the deal and thought it was an okay deal. Tolerable.
It took me a while to convince her about the sneaky assault on social security....which she gets.
Once I explained what Obama and the Repugs were actually doing, all of it, she was appalled.

How do you make people open their eyes and see what is going down?
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AZreb
equal-opportunity Independent heathen
09:51 AM on 12/16/2010
A lot of people - let's hope not the majority - have been programmed to believe that the Dems stand for the "little people" and do not realize yet what is actually going on in our government.

Once a person really studies the policies and programs of this Democratic administration, it is an eye-opener. Good for you in educating your sister on the actualities and realilties.
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HUFFPOST PUNDIT
Chris1962
NYC
04:14 AM on 12/16/2010
>>>And it's a disaster because the wrecking crew that's coming to Washington in January will point to the billions added to the deficit as yet another excuse to demand even deeper cuts in every federal program that might remotely benefit working people.>>>

That's what the Tea Partiers have wanted all along, so it shouldn't come as a surprise to anyone. With or without the Bush tax cuts, they were still gonna insist that their representatives start cutting this big, fat, bloated government down to size.
HUFFPOST PUNDIT
lodger16x
05:04 AM on 12/16/2010
But the radical right defines 'Big Gummin" spending as any spent on infrastructure, education, medical care,  or consumer spending within the United States.
 They are generally AOK with unlimited funds going to our 800 foreign military bases, unfunded wars, defense contractors, health care for cooperative Afghanis, Taliban, and Iraqis, etc.
A  few libertarians like Ron Paul see this hypocrisy, but the majority of the radical right loves anything associated with guns or explosions, anywhere in the world.
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HUFFPOST PUNDIT
Chris1962
NYC
05:51 AM on 12/16/2010
You realize you're stating your personal opinion, not fact, right?
06:18 AM on 12/16/2010
Don't look now, Miss Chris, but YOU are one of the people they'll be coming after. Little old ladies living off the government are top of the cut list, even if they do spend their days regurgitating wingnut talking points on the internet. They won't be showing you any mercy either, dear - that's if they succeed. But don't worry. The Dems will even save your sorry tush.
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HUFFPOST PUNDIT
Chris1962
NYC
10:39 AM on 12/16/2010
Even if I were a little old lady living off the government, none of the proposals out there would impact seniors. You would know that, of course, if you ever bothered to read actual newspapers. But that would be asking just a little too much of your intellectually lazy self, wouldn't it?
DaveAscone
Senator Bernie Sanders speaks for me!
03:22 AM on 12/16/2010
Outstanding article Professor Palermo! I hear people talking about the idea that we need a third party in this country. I say we need a SECOND party in this country. It now looks like we have just one: The Demlicans. The fact that a so-called Democratic President could allow and sponsor this assault on Social Security is the most outrageous thing I have ever seen in politics in my lifetime! Eventually, the citizens will wake up and smell their country burning but it will be too late.

I am so glad I never had any kids. The majority of the young people in the USA are already doomed!

I am ashamed to be an American.
07:09 AM on 12/16/2010
fanned and fav'd DaveAscone . . .ditto
Democrat in the South
Empathy, the most important word
09:23 AM on 12/16/2010
It was already too late when Obama was elected.
HUFFPOST SUPER USER
dennidus1680
11:50 AM on 12/16/2010
No, that was a time when the country was so fed up with Bush-ism that almost any democrat was very likely to be elected, in spite of the influence money being poured into republican hands. A Trojan Horse was needed, so that someone like Kucinich wouldn't be elected. I'm sure the elite decided long ago that no country like America would be allowed to emerge again and after Kennedy, no one anywhere near like him would ever be allowed to hold the presidency again. Obama fit the bill. He's a great orator, can lie like a rug, and will do what he's told. Status quo anyone?