Cutting taxes will not work if cutting spending is not a part of the deal. Since the Dems refuse to cut spending, more taxation is their only option.

House Dems Propose Internet Sales Tax to Help Cash-Strapped States

July 5, 2010 - by Donny Shaw at OpenCongress.

Despite polling data showing that Americans are more concerned about the jobs situation, most Members of Congress seem to be convinced that the federal deficit will be the top issue in the fast-approaching mid-term elections. The House and Senate recently stripped billions in aid for states from their mini-stimulus bill, and they're even struggling to pass an extension of unemployment insurance benefits, typically the least controversial form of stimulus spending. READ THE FULL ARTICLE >>>

As a result of their weakened legislative powers, the Dems are now turning to increasing taxes whenever and where ever possible --- scurrying about looking for pools of money not yet fully taxed. 401 k funds are on that list as is taxing the internet. The so-called "tax cuts" Obama gave to millions of Americans, last year, were regarded as "as taxable" income on the 2009 income tax returns. . . . . . . so which was it? Taxable income or a tax cut? Seriously, it cannot be both. We cite these tax cuts at this point in the post because it demonstrates just how far the Dems will go to find taxable income - they will even CREATE IT in the offering of "tax cuts." . . . . . . . . a laughable consideration if it were not Obama policy. Can you imagine the conversation that lead to this idea?

Are there no options to tax increases ? Certainly - they are found under the labels "cutting spending" and "increasing GDP." The problem with this fact is found in the realization that the current crop of Democrat Libs has no idea as to how to increase the productivity of this great nation. Their transition from industrial manufacturing to a service centered economy is similar to Custer raising the white flag in the face of his failed military strategy, knowing that the flag would be ignored and death would be the result. The notion that America is hell bent on becoming a nation of hamburger flippers is beyond belief. But the Adolescent in our White House has no experience in financial management and economic recovery .

Obama has not learned the lesson received by Bill Clinton - just get out of the way of a free market system and take the credit when it repairs itself. Apparently we have forgotten that more than 800 banks failed during the Clinton years but he resisted the temptation to micro-manage a system he knew little about and received credit for one of the healthiest periods in American history. --- jds.