Article first published as Tax “Deal or No Deal” Ordeal on Technorati.

The details of President Obama’s tax “deal” were announced on Monday, and five days later Democrats are still strengthening their opposition. Viewed by many as a blackmail payment to Republicans who have held hostage any legislation to help hurting Americans until tax cuts for the top 2% were extended, Democrats from coast to coast are angry and active.

Opposition in the House is being led by Rep. Jay Inslee (D-WA) who, with Rep Nancy Pelosi’s (D-CA) help, has managed to coalesce the Democratic Caucus and intends to block the President’s proposal from reaching the floor. Meanwhile, the torch in the Senate is presently being carried by Senator Bernie Sanders of Vermont, who stood up today and independently filibustered against the bill for more than 8 hours. 

Analysis of the bill reveals that not only will huge income tax benefits be extended to the top 2%, but an even more expensive estate tax gift will be given to the top one-tenth of 1%. In exchange, unemployment benefits that have historically always been granted when unemployment is above 7.2% will be extended, the bottom 98% of Americans will get the tax cuts the Republicans have held hostage, certain income tax credits will be extended, and there will be a one-year 2% rate reduction for Social Security withholding.

Overall, Obama’s back-room deal is sweet indeed for the wealthy and sweeter still the more wealthy one is. It does also give tax relief for the middle class, but according to Rep. Jan Schakowsky (D-IL) it will actually increase taxes on individuals making less than $20,000 or household making less than $40,000.

But in spite of the dire state of the economy, the immensity of the deficit and the plight of the middle class, Democratic opposition is not unanimous. Such Democratic stalwarts as Governor Ed Rendell of Pennsylvania have come out supporting approval of the proposal. And today, former President, Bill Clinton signed on to the list. To the person, these respected Democratic leaders assert that this is the best deal the democrats can get.

Sadly, it seems that President Obama, Governor Rendell, President Clinton and other Democrats who share their position are all completely missing the point. The situation we have in America right now is the result of decades of precisely the type of thinking these leaders espouse. It’s essentially business as usual deal making, and it gets us exactly NOWHERE. It’s the type of thinking that continues to build the bow wave that will soon wash across America again and take with it all but the wealthy who can weather the storm.

The fact of the matter is that the wellbeing of the majority of Americans has become so marginalized in the past 35 years that a huge portion of the populace now feels completely disenfranchised. The problem is so significant that less than 60% of registered voters typically bother to show up at the polls. But rather than address the core problem of voter participation, the process that President Obama and others in his best-we-can-get camp are pushing is focused on trying to sway the 19% of independents who form the center of this bare majority.

Enter the pendulum: this is the electoral system that created our present problem; the independents vote first one way and then the other — kick out the bums, become unsatisfied with the results, bring back the other bums — it’s a perpetual misery machine that pulses but never changes. It’s a closed system, and as stated by Einstein, it is therefore incapable of effecting real change.

If real change is what we want, then we must look outside of this closed system. We can no longer tolerate practices that serve only to maintain equilibrium, yet this is exactly what concentration on the 19% independent vote does. What’s needed is the introduction of new factors, the most significant of which should be an expanded electorate — a focus on tapping into that HUGE 40% or more of registered voters who stay home.

The Tea Party is evidence of the power of this phenomenon, albeit in a counterproductive direction. Allowed to continue, their discontent and belief that government is the enemy will form a vicious spiral that will only gain momentum. The President’s tax deal does nothing to alter this path. It is sadly a reinforcing mechanism that will help to sustain the descent.

What’s remarkable is that President Obama’s campaign of 2008 was the antithesis of the Tea Party movement. It too proved the power of expanding the electorate (62% turnout) and could have formed the roots of a peaceful revolution — a virtuous spiral. But alas it was not reinforced and was instead allowed to wither on the vine. Once elected, the President surrounded himself with status quo insiders and instead of being a force for real change became just another instrument of the establishment. He dedicated himself to doing what he had learned in Chicago politics — make deals. And in so doing, he failed in the most critical aspect of leading change; he failed to keep his supporters excited.

The President’s tax deal is a perpetuation of the system that’s responsible for the mess we’re in today. It offers temporary relief for structural problems and serves to exacerbate the issue of massive concentration of wealth — the very dynamic that brought us to economic collapse and a jobless recovery. The President’s deal does nothing to actually change the system, while potentially opening the door to further chipping away of our social safety net. It is at best a short term bandage that splits the proceeds evenly between the two sides, but where one side consists of 98% of all Americans and the other side is a minuscule elite minority.

Those on the left who advocate this deal are supporting the continued demise of the American middle class. Giving them the benefit of the doubt with regard to motive, they’re doing this because they believe that this is the best deal we can get. That belief is bred in the acceptance of 55% voter turnout and born of the notion that change must be sought by swinging that 19% independent vote. This is simple and utter defeatist nonsense.

The last thing we need moving forward are any more “deals.” What America needs is to excite the sleeping masses. Those who want to maintain the status quo fight diligently to break voter’s spirits and have them believe they can’t make any difference. Those who desire a better America need to break the trend. They need to motivate and inform the disenfranchised mass of voters who no longer participate. They need to give people a reason to get involved — and that will never result from making more back-room deals — it will only happen when the forces for change stand and differentiate themselves from the powers of resistance. 

President Obama set off a lively week for a lame duck Congress when he announced a tentative tax cut deal on Monday. Meeting without Democratic representation, the President carved out a hostage-release deal with Republicans that would give them the cuts they want for the top 2% in exchange for the extension of unemployment benefits and tax cuts for 98% of Americans. The President says this is the best deal that could be made, but many Democrats disagree.

Sadly, while the issue of tax cuts for the rich was a centerpiece of President Obama’s election campaign, he has yet again caved to the Republicans and decided to feed the rich. The Obama “deal” will not only break his campaign pledge and extend the Bush cuts for the top 2%, but it will also create a nice sweetener for the uber-wealthy in the form of an $88 billion tweak to the estate tax. Under the Obama deal, estates up to $5 million will be exempted from the tax, and the rate for those over will be 35%.

The President wants us to believe that a deal that will add nearly $900 billion to the deficit, with almost all of it in temporary relief, is a positive step for America. He wants us to believe that an estate tax measure that benefits only the top one-tenth of 1% is a legitimate price to pay to get a 1-year extension for unemployment benefits. He contends that the only way to get continued tax relief for 98% of Americans is to cave into Republican demands that serve millionaires and billionaires.

Most Republicans are already doing a victory dance over the Obama deal, which might help explain why congressional Democrats are finding some backbone in opposition. Many Democrats are incensed that in order to get assistance for those harmed most in the economic collapse, the President has given into Republican blackmail. They contend that for 40 years, all extensions have been granted when unemployment was above 7.2%, and they find it immoral that extensions are now being used as a bargaining chip with the rate currently at 9.8%.

Another bone of contention in the deal is a 2% cut to the payroll taxes paid by employees. The reduction will provide $100 billion in relief in 2011, which will put money in pockets where it’s likely to be spent and stimulate the economy. But it will do so by further shorting Social Security and potentially opening the door for Republican advances toward dismantling and privatization.

There are some additional measures in the package, like the extension of certain tax credits for which the Democrats are in support. There’s also some acceleration of business expensing that will move forward deductions for investments — a move that would normally receive widespread support. Taken as a whole, the package has some reasonable stimulus that’s mixed with a distasteful wad of non-stimulating fat for the rich, but like the individual elements or not, the inescapable problem with the entire proposal is that it’s $900 billion in additional deficit.

The entire Obama deal is debt financed temporary relief that does nothing to address the structural issues of our financial crisis. It’s another massive round of spending that will have to be financed by China or somebody else. And if you think we have trouble now with jobs being drained out of the country, with American business investment and jobs going to China, think about how another $900 billion in Chinese owned debt will tie our hands when it comes to trade reform.

President Obama’s tax deal isn’t a solution; it’s a perpetuation of the system that’s responsible for the mess we’re in today. It offers temporary relief for structural problems and serves to exacerbate the issue of massive concentration of wealth — the very dynamic that brought us to this point in the first place. It does nothing to actually change the system, while potentially opening the door to further chipping away of our social safety net. This deal is at best a short term remedy where the proceeds are split 50/50 amongst the two sides, but where 98% of Americans are on one side and only 2% on the other.

Democrats are right in rejecting this bill. It’s being sold as the best deal the President could get, that the Republicans wouldn’t budge. But the truth is that the Caver in Chief telegraphed compromise before negotiations ever began and then he finished by punting on third down. The Republicans stand their ground against this president because they know that he will always make a deal. He’s given them no reason to change their minds.

The President’s rationale for capitulation rests on the premise that we can ill afford to see taxes rise on the middle class, and he may be right. But we can no more afford for either the present trend toward concentration of wealth or for swelling deficits to continue. He tells us that this is only a two-year deal, and that he’s itching for a fight going forward. Are we to believe that he will suddenly develop courage and become a skilled negotiator? Are we to believe he has the intestinal fortitude to promote tax increases during a presidential election?

The odds are that the answer to both questions is a resounding “NO.” This whole deal is a Republican Party delight and an abomination for Democrats. It’s another maintain the status quo, kick the freaking can down the road “deal” that will, in the long run, only worsen the situation and further deteriorate the quality of life for the majority of Americans.

According to the Huffington Post, David Axelrod suggested to reporters late Wednesday that the Obama administration would be compromising on the extension of the Bush tax cuts. The news may seem appropriate to conservatives and Blue Dog democrats, but for most liberals, it registers on the shock chart as unbelievable.

It’s not that it’s so shocking that the Obama administration would compromise. After all, they’ve made moving to the right and telegraphing that position a mainstay of their failed negotiation and bargaining strategy.  The most glaring aspect of this particular issue is that in the aftermath of the midterm losses, when they should be doing everything they can to reenergize the people who got them elected, they choose instead to cave. It’s so inspiring.

If the story is indeed true, and compromise is once again the administration’s chosen path, it becomes exceedingly difficult to defend against claims that President Obama is a party to the corporate takeover of America. It essentially forces the conclusion that Obama cares no more about the middle class than do the congressional Republicans.

Axelrod frames the issue around a change in political climate forced by the election. His “We have to deal with the world as we find it” explanation of how the administration’s hands are now tied is nothing but a pathetic excuse to voluntarily hand Republicans yet another victory. There is really NO reason for the administration to back down on the Bush tax cuts. And Axelrod’s nonsense about doing it because “I don’t want to trade away security for the middle class” is nothing but unadulterated RUBBISH!

For Axelrod to suggest that they’ll fight hard against Republican attempts to repeal the healthcare legislation, while remaining silent on the deficit reduction commission proposal and signaling a compromise on the tax cuts is clear evidence of where the administrations loyalties lie.

The sad truth is that the healthcare bill mostly benefitted the poor, and that’s okay, because we need to work together as a nation to lift up everyone. But between the commission’s debt-reduction proposals — which attack all Americans who rely on wages to subsist — and this kowtow on the Bush tax cuts, it’s clear that the intention is to finance everything on the backs of the middle class.

Of course, recognizing the backlash of his statements, Axelrod was quick to back peddle and attempt a whitewash by claiming that he was merely reiterating the previously stated position of the administration. This may be true, but the report did cause a stir, and should have left no doubt that the President’s base is not in favor of compromise.

In the end, whatever Axelrod said is immaterial. What really matters is what President Obama does next. He has a mandate from — not only dedicated Democrats — but also a huge number of Independents and even a fair number of Republicans. Polls show that a majority of Americans are in favor of allowing the cuts for the very top income levels to expire. Only fools outside the rich are willing to pay for the increased opulence of the most wealthy. Obama has the support from the public.

And thanks to the Republicans, people are deficit conscious right now. The Republicans put the deficit into the public spotlight to use against Democrats. They worked their way through the election hammering that Democrats are fiscally irresponsible. But they did their bit and used the deficit for political gain and now want to immediately turn around and ignore it.

Democrats cannot now respond by allowing the Republicans to push the deficit into the background. They cannot allow the Republicans to spin a $700 billion increase to the deficit as anything but fiscal irresponsibility of the highest order. They need to make it perfectly clear to the American people that all economic benefit for the past 30 years has gone to the top 2% while compensation for the rest of the population has stagnated. They need to stand up for the middle class and demand that the rich stop taking at everyone else’s expense. And they need to take the strongest position against increasing the deficit simply to fill the coffers of the very rich.

They call this sort of issue a no-brainer. It doesn’t get anymore no-brainer than this. Democrats, even those in the upper middle class who would pay the most, would rather fight and wind up paying higher taxes than to just concede and let the rich squeeze the country again.

This is a seminal issue for the second half of President Obama’s term and for Democrats in general. If they cave, it’s a sure sign that they’re either complicit in the rape of the middle class, they’re just completely gutless (which equates to useless) — or they’re freaking incompetent. There really are no other options.

Which one is it?

You can help by raising your voice: just sign this petition and tell the President that you want him to fight against tax cuts for millionaires.