Goolsbee argued on FTN that the president is “going to look at what comes out of the House, what comes out of the Senate, see what ideas we have.” On “Washington Unplugged,” he agreed with the notion that the tax could have a “chilling effect.”
Meanwhile, Jared Bernstein, Vice President Biden’s economic adviser, said the AIG tax bill “may be a dangerous way to go.” And White House economic adviser Christina Romer pressed that there is a difference between “bad” agents like AIG and good ones like the potential private investors, who are “really doing us a favor.”
This could be the first decision that I actually want to support to come out of the White House if they oppose punitive taxes on the AIG bonuses. ‘Chilling effect’ is an understatement.
I’ve been on the record all of the blogosphere in comments saying that the White House is openly hostile to business. This move — especially a veto — would go a long, long way to disproving me in that statement. It would certainly disprove that everything they have done is hostile to business (which sounds like the sort of statement that I would make, and I think is true to this point.)
The bill is now going before the Senate, where there is speculation the tax could be reduced to 30 percent. President Obama likely doesn’t want the public relations nightmare of having to decide whether or not to sign the House version of the bill, which is why you can bet White House representatives are applying pressure on the Senate to come up with a version that the administration feels it can accept.
“Nightmare”? Are you kidding? It’s a dream. As bad as Congress is viewed right now, this could be the best thing to prop up BHO’s sliding numbers. Right now, Dodd, Pelosi and Frank are running the Democratic Party, not Obama. If he wants to show that he is in charge, he hasn’t had a better opportunity. Bush never had the spine to stand up to a Republican Congress. I honestly don’t think that Obama has the spine to stand up a Democrat Congress either, but I would be delighted to be proven wrong. BHO worshippers refuse to see that he can do any wrong, populist Republicans won’t be happy with anything, and the people actually pushing the economy forward would all breathe a sigh of relief.