America’s Policy: Political Capital at the Expense of Progressive Policy
Currently, America is in an economic bind. We are no longer leading the production of products, we lack the jobs necessary to allow people to spend for the services that drive our economy and politically this only means one solution can be brought to the table, tax cuts. Tax cuts seem to be a part of every political campaign and discussion nightly, weekly, monthly and yearly. The main issue that always arises with the mention of tax cuts is “who will get these tax cuts?” But an issue that is normally not discussed is “how are we getting these tax cuts?” Under the Obama administration, every working American received a tax cut this past year. When I heard this news I was as surprised as you probably are reading this. Many of you may be up in arms right now saying “Where’s my check? I didn’t get it in the mail!” Approximately one-third of the stimulus bill that was passed in 2009 (almost $300 billion), were in the form of tax breaks. According to the Tax Policy Center, 96.9 percent of households enjoyed a tax cut that averaged almost $1,200, however according to a New York Times poll only 10 percent of Americans knew of this tax cut.
You’ve already gotten this tax break in every paycheck you’ve received since the tax break was passed. Instead of getting a check in one lump sum, you received a couple extra dollars each pay period. Some economist have agreed that this is a more effective method for stimulating the economy because a lump sum would often be put away for a rainy day, while extra income, however slight would be spent normally because a person would not notice the difference due to the tax break. This appears to be a basic, but more forward thinking approach to building our economy for the future, and not simply passing a law for the political recognition.
When everyone received their refund check after the Bush Tax Cuts, it was clear who was giving you that tax cut. The check arrived in the mail and stated why you were receiving the check, and who was responsible for the tax cut. This served as great political capital for the Bush administration when it was election time. There was something concrete that the populous remembered because of the branding of the tax cut. In Contrast, little political capital was gained from Obama passing this tax cut because barely anyone knew of the tax cut.
Despite the lack of fanfare for the tax cuts, they appeared to be a productive means of making a long-term impact on our future by building our economy. Despite this, they will garner little interest because it did not affect our pockets at once. Democrats have recently conceded that they must do a better job of selling their policies because of the lack of knowledge of this tax cut, but based on election returns from last night’s midterm election the word was not spread quickly enough. The populous cannot vote for policies and change for which they have been given little notice.
