Redstate...
Lack
of Principle Got Them In This
Mess. Principle Gets Them Out.
Posted by Erick Erickson
Thursday, December 22nd
The
payroll tax holiday has become a
mess for Republicans. I am beginning to believe raw sewage has greater
political acumen than the Republican leadership in Washington. At least
raw
sewage can pick the path of least resistance when flowing through the
bowels of
Washington, D.C.
Not
so the Republicans.
They
have gotten themselves into this
mess for three reasons.
First,
House Republicans were going to
vote on their bill and leave town, but decided to play nice with the
Senate
Democrats. So instead, the Senate did to the House what the House had
planned
to do and then did not do. The Senate passed its plan and fled.
Second,
House Republicans let the
Senate Republican Leader call the shots. Let us not forget that in the
government shutdown against Bill Clinton in the 90′s, House Republicans
were
betrayed by Senator Bob Dole, the then Republican Leader, who announced
the
Senate was going back to work when the House expected to stay shut down.
Third,
and most importantly, the GOP
lost — and they did lose, here being clubbed to death like a baby seal
—
because they abandoned long held Republican principles.
It
has been a defining principle of
the GOP that drives the left crazy that tax cuts need not be paid for.
Tax cuts
generate economic grown which then cause the tax cuts to pay for
themselves.
The
GOP abandoned this and instead
decided to engage in a tit-for-tat over cuts with the Democrats. The
cuts
turned into Democrats and Republicans competing to see who could raise
fees and
taxes to pay for this cut. That is a war that cannot be won right now
if not
ever.
Likewise,
the GOP decided to abandon
its principled position to getting government out of the way of small
businesses. By pushing forward with a two month extension, the GOP
decided to
leave uncertainty in the mix, which hurts business. And let us not
forget that
this two month payroll tax holiday extension is wholly unworkable
because of
the Senate’s changes. Most businesses won’t be able to implement the
changes
Mitch McConnell agreed to within the time of the tax holiday.
Lastly,
the GOP believes that
continual extensions do not actually generate economic growth. That is
why they
have fought so hard to make the Bush tax cuts permanent. But here the
GOP is
letting the Democrats out flank them on tax cuts. This only results
from the
GOP abandoning basic economic sense and long held Republican principles.
So
what’s the solution?
I
think the GOP now needs to out flank
the Democrats and call for clean legislation extending the payroll tax
holiday
permanently with no other provisions. The Democrats will then cry foul
and say
this risks undermining social security, at which point the GOP will
have to
openly wonder why then does a second year extension not undermine
social
security.
The
fallback position should be to set
the expiration based on three consecutive quarters of 3% GDP growth in
the economy.
End the payroll tax holiday at the end of the immediate next year in
which the
first three quarters of that year see 3% growth or higher in GDP.
That
provides an ascertainable point
at which the payroll tax holiday should end and premises it on actually
doing
some good for the economy.
But
this two month extension should be
cause for the GOP to drag Mitch McConnell into the street
(metaphorically
speaking of course) and let him feel the wrath of employers who don’t
know what
the hell is going to happen in January. It abandons principles, harms
businesses, and perpetuates uncertainty.
Read
this and other articles at
Redstate
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