I've been saying it for a couple of weeks now. I am continually astonished that the entire news media from one end of the political spectrum to the other, right to left, all with one voice continue to refer to forestalling the January 1st reversion to pre-Bush tax rates as a tax cut. Acting to continue taxes at the current rate is forestalling a tax increase. There is no way a legislative act that refrains from taking more money from you will be a tax cut. After a cut you have more than you did before. After this act, which may or may not occur, you will have the same. Shaping the message by the Bamster has never been more blatant.
If you are about to have an increased tax burden are you going to go out and aggressively shop for a new car, a new suit, a new flat-screen TV, or a new appliance? Are you going to plan for that dream vacation? Or, are you going to wait and see how you are impacted? I know what the prudent man does.
But, more critical to the question is how this tax action impacts the unemployment situation. The Messiah asserts that giving relief to the hand-to-mouth, subsistence class which is wallowing in credit card debt will stimulate the economy and create jobs. He does not acknowledge that the greater probability is that people will catch up on their bills or rat-hole the cash for a prolonged downturn. You won't get a spending spree creating demand and therefore jobs.
That's why you get Rush going a bit hyper in this rant:
Jackass, Ignoramus, Imam-Child, Clueless Economically
Doubt and uncertainty about future demands by the government do not fuel a recovery. People will not spend or expand their business when they are afraid that the looming healthcare demands will drive them over the edge. Middle-class spending contributes to job creation, but the actual decision to hire an additional worker and pay them a reasonable wage and benefits for the long term is driven by that reviled top two percent of income earners in America.
Failure to recognize this is the failure of the current administration. The policies of redistribution don't feed a robust growing economy. They do exactly the opposite.