Tax-cut extension hurts the nation

Ted K. Carr, Las Vegas

Sunday, Dec. 19, 2010 | 2:04 a.m.

Loyal partisans support their leaders. Their leaders, however, are no longer accountable to the voters. Rather, they are nowadays accountable to the interests that can make big campaign contributions. Policy is therefore not constructed to benefit the voters — it is designed to have superficial appeal to voters and pay back the big contributors. By loyally supporting party leaders, the party faithful are being deceived.

We are at war. When Presidents Calvin Coolidge, John Kennedy and Ronald Reagan cut taxes the nation was at peace. President George W. Bush cut taxes while our troops were in harm’s way and the consequence has been a sloppily led war and a national economic crisis. The war effort needs funding, and a return to the Bill Clinton-era tax rates would be the best option.

If Congress had not passed legislation, vis-a-vis cutting taxes, a return to the Clinton tax rates would have resulted. Call it what you will, an increase in taxes or not (that depends on your partisan loyalty perhaps), but the nation needs revenue to not default on its many obligations.

Former Labor Secretary Robert Reich (under Clinton), former budget Director David Stockman (under Reagan) and others have opposed extending the tax cuts. Moody’s will likely downgrade U.S. Treasury bonds because the short-term stimulative effects of this horrible compromise will be more than offset by the huge increase in the national debt.