Congressional
Republicans Oppose Stimulus To Protect Their Friends at the Top
By John Davis LUPA Advisory Board Chair and Region 8 Webmaster
The biggest news out of Washington last week was
the debate over the proposed Stimulus Plan that President Obama
has proposed. On January 28, 2009 Congress passed the proposed Stimulus
Plan by a vote of 244 to 188, without a single Republican representative
voting in favor of the plan. Despite changes to the plan to appease
Republicans, not a single one reached across the aisle to support
the plan. This came in the same week that employers across the country
announced literally hundreds of thousands of more layoffs.
With the plan headed to the Senate, the question
remains “why do Republicans oppose the measure?” Actually
there are a number of reasons for the Republicans to oppose the
plan and they all point one direction; no perks for the wealthy.
Republicans have stated they feel that any stimulus plan should
be made up entirely of tax cuts. They insist this the only way to
jump start the economy. They evidently feel that Americans have
short memories. Many of the issues we face today are a result of
the Bush Tax Cuts from 2002 and 2003. President Bush inherited the
largest surplus in U.S. history and right away started pushing a
plan to cut taxes with the bulk of the cuts going to the wealthiest
individuals. These tax cuts resulted in huge shortfalls in revenue
to state and local governments. At this time most states in this
country are teetering on financial collapse due to reductions in
federal tax dollars and the reduction of sales tax due to the slowing
economy. GOP governors around the country have been pushing the
stimulus plan while their Republican Senators and Congressmen from
their states oppose it.
In 2008 a stimulus package that was entirely tax
cuts, including $50 billion worth of business tax cuts that had
no impact on the economy. To court Republicans, President Obama
included another round of business tax cuts in the current bill
but the Republicans demand more. GOP leaders have stated they will
not support a bill that isn’t entirely tax cuts. They called
the bulk of the bill “simply socialist programs” they
are opposed to. Those “socialist programs” are plans
to create jobs by investing in infrastructure improvements across
the country. The “pork” the Republicans have screamed
about includes plans to put laid off Americans to work improving
roads, upgrading schools and building parks and playgrounds. While
America is in great need of infrastructure improvements, it is jobs
at the base of the plan.
The plan includes tax cuts for most Americans –
the bottom 95% that is. Republicans  argue
that everyone should be included. According to the Center on Budget
and Policy Priorities, if the current tax cuts that President Bush
implemented are made permanent, the top 1% - households with incomes
of $450,000 or more a year – would receive 31% of the tax
cuts from 2009-2018. Their tax cut would equal $1.2 trillion dollars.
Essentially this means the current stimulus plan which is designed
to jump start the economy and keep struggling families afloat could
more than be paid for by simply letting the current tax cuts expire.
A stimulus plan’s purpose is to help those in need. Do you
really think these folks in the top 1% need help? The message that
Congressional Republicans are sending is simple- they are willing
to sacrifice the bottom 95% for the benefit of the top 5%.
The Republicans have another reason for opposing
the stimulus plan. The package approved on January 28, 2009 included
“Buy American” provisions in the bill. The intent of
this provisions is to require companies involved in the infrastructure
improvements to buy American products such as steel for use in the
projects. The National Chamber of Commerce has cried foul stating
it would create “trade wars” with other countries. Someone
needs to inform the National Chamber of Commerce that we have been
on the losing end of trade wars for years now. Most foreign countries
subsidize industries such as steel, allowing them to sell cheaper.
This undermines U.S. steel companies who have no advantage of government
subsides. The purpose of the “buy American” provision
is to ensure the tax dollars spent on this project create American
jobs – but the National Chamber of Commerce have no interest
in jobs – they care only about corporate profits. Again we
must remember, this is the same group that bankrolls the anti-union
Center For Union Facts whose sole purpose is to deny workers the
right to organize and the collective bargaining process.
Someone should remind the Republicans their true
colors are showing. Their opposition to the President’s Stimulus
Plan is based on benefits for the wealthiest 5% and big business.
But then, what else is new” These are the same groups that
have always been the benefactor for all Republican policies.
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