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[...] [T]he White House has been pointing out to journalists that President Barack Obama signed "one of the largest tax cuts in history." But just because the Obama Administration calls something a tax cut, doesn't make it so. More than a third of Obama's "Making Work Pay" tax plan goes to people who do not pay income taxes. That makes it a welfare income redistribution plan, not a tax cut. That is why, after President Obama told House Republicans he would not compromise in any way on his tax plan, he lost the entire caucus.
But let's set aside the fact that a third of Obama's 'tax cut' is really just welfare by another name. Even the parts of it that do actually cut the income taxes of tax paying Americans are destined to fail. This is because the Obama tax cut repeats the exact same mistakes that President George Bush made. Just like Bush's 2001 and 2008 tax cuts, Obama's tax cut is a purely temporary cut designed to boost consumer spending. [...]
With about a third of the $787 billion economic stimulus package devoted to tax cuts that have no hope of stimulating the economy, it should come as no surprise that White House press secretary Robert Gibbs said he "wouldn't foreclose" on the possibility that the Obama Administration would come back to Congress asking for yet more deficit spending stimulus in the near future.
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