The loopholes of cluelessness

We will continue our downward spiral with gaining momentum if the Democratic party continues to fail so miserably in the message wars. I just cannot comprehend why lawmakers whose ideology is on the right side of history, public sentiment (overwhelmingly) and otherwise proven economic science cannot win any argument and therefore must constantly employ the policies of the other side in order to get anything done.

Perfect case in point: yesterday's Presidential address in which he calls for, of all things, a 'tax credit' for businesses who hire returning war vets. A TAX CREDIT? This is your plan in the midst of trying to convince the public that we need to close loopholes and spending in the tax code? Every loophole was once a new 'tax credit' or deduction meant to stimulate a certain sector of the economy. Yes, the motive is noble without question, but the method is ridiculous in this political environment.

The immediate cost to the government would be equal if this investment was designed as a spending program. But the cost to the long-term debt is exponentially higher if it is designed as a tax credit. What happens when these wars are long over and the economy (hopefully) recovers? A tax credit will continue to cost the government money in perpetuity as tax lawyers successfully lobby that it also applies to 'this' & 'that' hire thereby making it yet another senseless corporate 'loophole' whose elimination will be considered a 'tax hike' by fiscal 'conservatives.'

If it were designed as a spending program, once it has achieved it's admirable and currently necessary goal it would be among the first items eliminated in some future negotiation to cut spending.

The Democrats (via our current President) are once again playing into the hands of a political party that has no true concerns about debt & deficits, only lower taxes. How can smart people be so stupid?

-GSW 8/8/11