NONE HAVE A CLUE

As the 1st of January 2011 approaches, and yes I know that this event is more than 5 months away, it brings not only the traditional New Year celebrations but also the termination of the President Bush tax cuts that have been enjoyed by most Americans. As absolute evidence of how lost the Obama Democrats are when it comes to this tax matter, you only have to consider statements from Alan Greenspan and Ben Bernanke and Timothy Geithner.



Alan Greenspan has clearly stated that Obama must let the Bush tax cuts die but quickly adds that he fully understands that the imposition of the old tax rates will negatively impact the growth of the American economy. With a few modifying terms Greenspan projects that economic growth will be slowed with the loss of the lower tax rates.


Taking the opposing position, Federal Reserve Chairman Ben Bernanke has publicly opined that Obama should preserve these same Bush tax cuts. His rationale is simple - keeping the tax cuts in place will act as a continuing stimulus for American economic growth.


Timothy Geithner - Treasury Secretary - has expressed a middle of the road thought by urging that the Bush tax cuts stay in place for all Americans that annually earn less that $250,000.00 but no extension of the tax breaks are granted to those who make greater than $250,000.00. Part of his thinking is that the federal government needs this tax source to cover the ever growing sum of federal deficits.


The clear but sad truth is that the Obama Administration has no clear plan on how to revitalize the American economy or how to reduce the massive debt that Washington has incurred.

One matter that cannot be ignored is that since Obama was sworn in as President, the American economy has lost 3,100,000 jobs and our national debt has grown by an immense amount.

The only supportable facts are that a successor to BHO will be elected in November of 2012 and sworn in about 90 days later. That person will have an almost impossible task of curing the American economy including how to handle the federal tax rates.