Cut jobless benefits but not Bush tax cuts?

Last week the House of Representatives voted down a bill to extend unemployment compensation (HR 6419) through the end of February 2011. Walt Minnick voted no. It would have been a three-month extension of the Nov. 30, 2010, termination costing $12 billion. The benefits would have gone to those in great need.

On an annual basis, this level of assistance would cost, at the present level of unemployment, about $50 billion.The looming battle in Congress is what to do about extending the Bush tax cuts. There is no dispute over tax benefits for those with incomes of $250,000 or less. However, the Democrats want to raise the highest tax rate from 35 percent to 39.6 percent (the Clinton Adm. top rate) on those taxpayers earning more than $250,000, about 2 percent of Americans. Increasing that income tax rate on high earners would raise about $70 billion a year.

In the debate over the unemployment extension, Republicans argued that it would increase the debt and deficit too much. On the other hand, Republicans support extending the Bush tax cuts to all taxpayer, including the rich, arguing, “We can’t afford any tax increases during a recession.” The economics of this situation are simple. Unemployment will all be spent, thus moving all those dollars into our consumer driven economy. However, the tax savings accruing to our highest income citizens will not be spent.

Not only is the Republican position Scrooge-like during this holiday season, it is economically inconsistent and amazingly hypocritical.

BOB WYNHAUSEN

Sandpoint