Assuming the fiscal bill passes the House today, the President now faces the test — is he taking us on an economic ride upward…or an economic downward spiral? The President now ‘owns’ this tax increase and thus ‘owns’ its impact – good or bad – on the economy and the nation.
The President and his party have said the “Republicans protect the rich” and that wealthy should pay more taxes. Republicans have countered with the argument that taxing the wealthy will severely hurt job growth and our economy.
With this new tax increase, and with Republicans now conceding to the President and voting FOR the increased tax on the affluent, the President can no longer blame the Republicans and accuse them of protecting the wealthy. This now becomes his tax increase and his economic strategy.
So now….will the economy grow? will our debt and deficit begin to decline? This is the President’s test. Let’s hope he is right…these are very perilous economic times.