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The following article was published in our article directory on December 21, 2010.
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United States Economic and Political Situation Like a Series

Article Category: Business

Author Name: xia zihui

If the political situation in the U.S. economy is like a soap opera, then the end of December after the expiration of the Bush era tax cuts and whether or how the extension of Washington caused by war, comes as the climax of this political and economic drama. Because in this scene, all the actors will fade almost entirely artificial, disguise or the acrimony, not only the position seems clear distinction between the political parties, and even within parties has become gully clouds, the White House and Capitol Hill, there are also sub-divided between Hehe.

Political and economic drama in the climax of this section, you will see a lot of unexpected but makes sense in the dramatic conflict:

2, forced the House of Representatives voted to pass a permanent tax cuts for middle-class extension motion, opposed by the United States enjoy the high-income tax cuts were extended by motion, knowing that the bill will set back the Senate, the Democratic Party as we seek a strong s, as is control of the House in December is still the case, let the Republicans out of an ugly, wealthy Republican spokesman for the voters to pass the image.

6 May, Obama held a provisional surprise news conference, claiming that tax cuts have reached a compromise with Republicans, the compromise agreed to the Bush era tax cuts expiring two-year extension referendum, while unemployment benefit The bill to extend for 13 months, and to provide investment tax credit and so on.

10 afternoon, at the White House press officer have no knowledge that Obama can not find the press room door key to the case, he and the Clinton White House news conference suddenly appeared at the same time, not long before Obama turned to leave, Clinton left a half-hour one-man show to sing, even behind the compromise tax cut; also in 10, 69-year-old Senator Sanders worked tirelessly to 8 and a half-hour speech against this compromise, Washington saying goes, " Members spoke, no one would listen, "but Sanders's speech had created a" mobilization of the whole city "effect, causing the collapse of the Senate once the video web server.

16, some Democratic members of the tax compromise because Obama was too kind to Republican in terms of inheritance tax debate, and even into a recess 16 at night to vote not more than 11 points out of worry in the end the author is writing for is 16 or 17 at night, when the wording of the early morning, 11:59 House of Representatives finally passed the compromise difficult to program; Obama 17, smiling in the signing ceremony, signed the compromise bill, and large Like congressmen from both parties manifested the spirit of bipartisan cooperation.

Obama tax cuts during war time appearances are almost stern, but since the mid-term election defeat in the Democratic Party, he rarely worn in public, our favorite red tie, and choose a lot of conservative gray tie, He wants to create a political line is not in the right middle line of the left not to win more support among voters, and therefore even the style of dress, speaking style are changing, 17, a compromise tax cut bill he signed is to bring a long absence, red tie ... ...

In fact, both Democrats, Republicans or the White House, all represent the values of specific interest groups, some heavyweight members already wealthy, observed Washington's political and economic drama has always been not out of the coordinate system of electoral politics. Through the smoke of political battle, some economists believe that tax cuts do not compromise the ideal outcome, but rather mixed with the product of short-term political motivation game. Nobel laureate Paul Krugman and others to think that entrepreneurs will not invest a year of blind expansion of investment tax credits Jiuhui, two years of practice to the wealthy tax cuts to stimulate consumption of the so-called, to create no excuse for the employment of Huang Huang step.

In addition, from the perspective of solving the unemployment problem, even though the Congressional Budget Office estimates that if the Bush tax cuts during the two-year extension in 2011, the unemployment rate in the United States can not tax cuts than under reduced by 0.1% to 0.3% Although this, too little performance, but in the face of high unemployment rate of 9.8%, this decline is not ideal "job creation" is just as many American political and economic decision-making shield only. Reduce government spending and deficits from the perspective of the rich income tax rate will last for decades to the lowest, while the estate tax alone is a loose, the United States lost the next two years the tax will be 200 billion U.S. dollars.

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