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.

Article first published as The Republicans Rail and The Democrats Tuck Tail on Technorati.

The Republicans are winning again. Motivated by hate, fear and ignorance, Americans are flocking to bring back into power the party of plight for all but the wealthy.

Yesterday, the Republicans revealed their new “Pledge,” with John Boehner stating that “We’re not going to be any different than we’ve been.” They’re actually promising a return to the policies that created the Great Recession and people are still applauding instead of throwing rotten fruit at them.

Thinking people need to be concerned. The political landscape in America is no longer about principles and policies; it’s about the creation and recycling of talking points that trigger emotional responses. The Republicans have truly mastered the “art” of political theatre. Their satirical mockery of democratic government would be funny if it weren’t such a tragedy, if it didn’t hurt so many for the benefit of so few.

Americans should be mad as hell about our broken government. But getting mad at Republicans for distortion, hyperbole and lies is like getting mad at a bird for crapping on your windshield; it’s just what they do. You might as well shake your fist at the wind.

But the Democrats are another story. While the Republicans were sharing their “Pledge to [Rape] America,” yesterday, Senate Majority Leader, Harry, the Cowering Wimp, Reid was announcing that there would be no vote on extending the Bush tax cuts to the middle class until after the election. Yep, the Democrats are once again rallying behind their track-proven strategy of tuck-and-cover. Once again, they’re rolling up in the fetal position and hoping for the best.

Bravo!

For those Democrats who believe President Obama hasn’t gone far enough, a brief pause to consider the team he’s had in the Senate might be in order. If Michael Jordan were to take the court with four high-schoolers, they’re not going to threaten even the worst NBA five. The fact that Obama was able to get anything through a Senate that was effectively controlled by the minority is actually quite remarkable.

Like the old adage says, “you can lead a horse to water . . .” The President came out swinging in Cleveland. He gave the Democrats the line in the sand they needed to define themselves. He took on the Republicans for their continual pretence of support for small business, their feigned concern about jobs, and their hypocrisy regarding the deficit. But while the Republicans were out power posturing yesterday, the Democrats were showing what cowards they truly are; they decided to turn and hide.

Democratic voters should be incensed, and their rage should be squarely directed at all the gutless Democrats who continue to allow the Republican bullies to rule the congressional schoolyard. In statements yesterday, they voiced their concerns that the Republicans would spin Democratic support of tax cuts for the middle class in a negative light — as if not voting on them will prevent the attacks.

The conclusion is inescapable: the Democrats never learned that the way you beat bullies is to stand up to them. Republicans aren’t going to win the election in November because they had the better policies — because they have none. They’re not even going to win because they have the better talking points. They’re going to win because no matter how egregious their distortions of the truth, no matter how hate-filled their rant, no matter how fictional their arguments — they’re the only ones talking.

Democratic policies support 98% of the population. They uphold the right ideals and have all of the facts, both theoretic and historical on their side, yet they’re losing. Perhaps someday they’ll come to understand that when people are fed a daily diet of fact-free propaganda, unless the opposition is refuting the claims with the same strength of conviction, the people are going to swallow.

Until that day, the Republicans will continue to keep their followers seeing red, and Democratic voters will be left feeling blue.

It’s like Biblical Egypt all over again, complete with the plague of the frogs, only this time — the frogs are Us. The United States of America is in dire straits, the most dire in my lifetime. Years of party politics and pandering to special interests has left our country afloat on a sea of rising problems. Pick your issue, be it banks who rob us, insurance companies who only insure for their profits, needless wars that kill our young and stuff the pockets of the defense industry, jobs, energy, taxes, it doesn’t matter; rudderless and without a destination, America continues to sail on troubled waters. The issues are many, the stakes historical, the arguments heated near a boil, and still too many Americans don’t fully comprehend that gravity of the situation — it truly is a slow burn, and We the People ARE the frogs in the kettle.

Witness the raging debate over healthcare. Are we any better off now that the “reform” bill has passed? Are we any worse? Democrats are optimistic that we’ve moved forward on the need to provide care for more Americans, and that we’ve done so in a fiscally responsible way. Republicans insists that the bill was forced down the people’s throat; that it’s a drastic move toward socialism that will surely trigger Armageddon. Who’s correct? Left? Right?

The truth that America can’t seem to handle is that they’re both right . . . and they’re both wrong. This is a dibilitating core problem in American politics. Our present political system functions more and more like a sporting event. Sides are chosen, and it’s winner take all. This is great for entertainment value, but it totally sucks for addressing the complex issues that face our nation. Our democracy has become completely dysfunctional.

The healthcare legislation is just one example; one for which I’ve already shared my opinion. I sincerely wish it was the only example, but that’s far from the case. The process witnessed during the healthcare debate is simply the latest instance of partisan bickering and diametric opposition to exemplify our broken government. This slam dance is now standard operating procedure, and it guarantees that the real issues will never be addressed.

There is no doubt that this dynamic has crippled our democracy’s ability to serve the needs of the people. But of even greater concern is the irresponsible outcome insured by the marriage of the two warring factions. The net result of the Democrat push for increased social benefits, coupled with the Republican mantra of tax reduction, not only ensures that effective solutions are never instituted, but also serves to keep the public’s attention trained on the diversion and away from the elephant in the room.

This is nothing new for Washington politics, but the gravity of the consequences hits new levels with every passing day. The “more services/less revenue” tango has left America in denial. Little conversation occurs regarding our economic elephant. This Godzilla like beast to which I refer is the deep dark financial hole our illustrious leaders so zealously feed — a hole totaling some $56 trillion dollars as of September 30, 2008, and growing.

That’s right, $56 trillion, with a “T.” That’s nearly a half million dollars for every American household. In the words of David M. Walker, former Comptroller General of the U.S., this is like having, “a huge second or possibly third mortgage, amounting to almost ten times your annual household income.” For the moment, we do still have the World’s largest economy, but even our $14 trillion GDP pales when compared to this mounting debt and liabilities. And when you consider that the budget deficit was $1.42 trillion for fiscal 2009, a full 9.9 percent of that GDP, you get a feel for how we’re feeding our giant reptile.

Recent bailouts and the new healthcare legislation certainly add to the problem, but they alone are not the culprits. The real core issue is complete fiscal irresponsibility on the part of conservatives and liberals alike, and the bottom line is that neither side has the courage to face the music. Though, I guess this is somewhat understandable, since the song they need to play is a dirge, and the lyrics should go something like, “We’re so sorry we sold you down the river for our own personal gain.”

Yes, my fellow Americans, regardless of political affiliations, we’ve all been sold a bad bill of goods. It’s time to stop playing like ostriches, pull our heads out of the sand and take a serious look at our financial mess. Like teenagers with a new credit card, our elected officials have strapped us with a federal debt now over $12 trillion dollars, and that’s not the worst of it. It’s actually more like the tip of the iceberg. The plot sickens much further when you take a look at our unfunded obligations.

As of September 30, 2008, our unfunded obligations, consisting of Medicare, Medicaid, and Social Security totaled nearly $43 trillion. And since the Congress refuses to address the issue and instead continues to add to the balance, the $56 trillion hole (federal debt plus unfunded obligations) for 2008 is expected to bulge to $63 trillion for 2009.

Just in case these numbers don’t grab your attention, you might want to consider that when George W. Bush took office, the hole was a comparatively manageable $20 trillion. During his two terms as President, we had three tax cuts, started two wars, bolstered homeland security and added an extremely expensive prescription drug benefit to Medicare. The combined result of this wisdom enlarged the hole by 176 percent to the $56 trillion number that President Obama stepped into. This is what’s commonly referred to as a snowball effect, and the really scary part is that it’s just getting going.

Indeed, if left unaddressed, the GAO (Government Accountability Office) forecasts that within the next 12 years, interest payments on the federal debt will become the single largest line item in the federal budget. If left until 2040, all federal revenues would cover only the payment of said interest and Medicare/Medicaid. We’d have nothing left for defense, much less Social Security or anything else. Put another way, in order to cover the bills in 2030, our average federal tax rate of 21 percent will have to swell to as much as 45 percent. By 2040, it would be 53 percent, and that’s only the federal slice.

Needless to say, this paints a sorry picture for all of us, but left unchecked it could prove devastating to our children and grand children. All Americans should be absolutely ashamed that we’ve allowed the situation to grow so very bleak. Everybody knows that we’ve been building a house of cards, that you can’t continually reduce federal revenues (cut taxes) and at the same time increase spending (wars and services) and expect things to balance. Our elected official’s intentional obfuscation of the facts may have clouded issues, but in the end, it’s really every American who’s responsible. We’ve spent 30 years in denial and it’s high time to stand straight and face the facts.

The facts are that, contrary to common assertions, we can’t grow or inflate our way out of this big ugly. Yet, unless we want to just subscribe to the contemporary American IBG (I’ll Be Gone) ethic, we need to do our best to address the issues and to do so with some haste. Things will only get worse until we do.

Resolution obviously won’t be easy, but the good news is that we can make it happen, and we’ll all be stronger for the wear. Real patriots will take this challenge in the spirit that created our great nation. They will demand that our politicians immediately stop the destructive rhetoric, cease their incessant partisan bickering, and open a meaningful dialog to address this real and pertinent issue. And they will also accept that the way out will require that we all make sacrifices.

Thankfully, I’m not a politician, and I don’t have to worry about getting reelected, so I can tell it like it is. The fact is that big holes need big shovels, and we’ve done a lot of digging. Our way out is going to be painful. So conservatives, suck it up, because we’re going to need to raise taxes, and liberals, bite your tongues, because social programs will have to see cuts. Social Security and Medicare have to be reformed and the defense budget will need a serious overhaul. It’s time for transformational change, change that will require nonpartisan solutions. I’m sure that recovery will provide plenty to piss off every American, but the only alternative to some scorched buttocks is to just sit in the kettle and be cooked. You’ll have to make your choice. I’ve already made mine.

If you’re interested in more information, please take the time to watch I.O.U.S.A. And when you’re finished, please do get involved. You can start by taking action and writing Congress.