The Obama campaign strategy has just come into sharp focus. Following on the heels of a bill the President just signed that drastically cuts the number of weeks federal unemployment benefits can be collected comes the announcement that Obama plans to cut the top corporate effective tax rate to 25%. Although he claims this is part of a greater tax code overhaul which will close many business tax loopholes, cutting the tax rate flies in the face of advice given by prominent economists such as Paul Krugman and Robert Reich to raise them. These tax changes will further motivate corporations to bring overseas jobs back here, according to the President’s claim. But what he doesn’t explain is how those jobs can be brought back here with a pay scale that won’t exceed what the Chinese were being paid. To pay Americans more would boost the cost of the manufactured goods beyond what the unemployed who just ran out of unemployment benefits can afford.
The Obama team claims the tax overhaul will bring in an additional $250 billion in tax revenues, if we’re willing to wait 10 years to collect it all. These tax changes will further motivate corporations to bring overseas jobs back here. By that time Obama will have been retired from the White House and making a lucrative living from speaking tours and book sales. Whichever presidents follow him into office can do whatever the want to the tax code which could render the anticipated $250 billion just another phantom of an unfilled campaign promise. But the tax benefits to corporations are immediate and that’s how quickly his SuperPac will start collecting their campaign contributions. (Have you ever noticed how all presidents are fond of predicting outcomes that will happen during someone else’s presidency? But I digress.)
Obama has clearly kicked the 99% to the curb. He knows he’s got his base locked in on the social issues because they’ve got nowhere else to go. So now he’s looking to cut his opposition off at the knees. Moderate Republicans are turned off to the crop of clowns they’ve been offered. The clowns’ stances on the social issues are no laughing matter, despite their large floppy clown shoes. So Obama needs to woo these moderates on their bread and butter economic issues: make unemployment harder to get and for a shorter amount of time, and back off on those high corporate taxes which are strangling the job creators. After the President wins both the social and economic debates, the clowns, despite their large floppy clown shoes, will fall flat on their collective face.
It’s a brilliant if cynical campaign strategy. The difference between Obama and Romney is that Obama can tell a crowd what it wants to hear with believable sincerity. I think that both Obama and Santorum are sincere in their religious beliefs, but Obama’s are grounded in reality and if he ever spoke of inserting an ultrasound vaginal probe up into a woman’s private parts, Michelle would whomp him upside the head with the Lincoln cast iron skillet.
But Obama’s message to the 99% is once again, “I gotta go meet with the money people now. See ya later.” And the 99% have no choice but to respond back, “OK. See ya…” That whoosh sound you just heard is Obama turning his back on them.