Depression

The more I read the news the more depressed I feel. Everybody who pays attention has known for many years that the Bush tax cuts would expire at the end of 2010. Democrats have been in charge of both houses of Congress and the presidency for two years. We're now in the lame duck, the last month before tax hikes kick in but Nancy, Harry and Barry still dither. How can our leaders behave so irresponsibly?

Millions of tax-paying individuals and businesses need time to plan their affairs. Individuals must decide whether to accelerate income or deductions, whether to convert an IRA to a Roth, whether to sell stock or real property in 2010 or 2011 -- or whether to sell at all or buy instead.

Good businesses (don't we all want those, for the taxes they pay and the people they hire?) plan so as to maximize profits or minimize losses, insure they have enough capital to survive and prosper, determine how many people (with what kinds of skills) they need for the coming year or years, decide what new facilities they will need to accomplish their goals -- or what facilities they should dispose of because they don't meet current or future needs. Good businesses do this regularly, and continuously. But income taxes are a huge factor in business planning. The federal government is a roughly one-third partner in nearly all successful businesses -- but doesn't supply any of the capital. State governments are 5 to 10 percent partners, and they don't supply any capital either. Business can't plan without knowing tax rates.

Besides the tax problem, we have the risk of the government shutting down. Without a continuing resolution, the government shuts down tomorrow. At this point, a 15-day continuing resolution sits on the president's desk for signature. Assuming he signs it, we're good until December 19th. Then what? A new CR for another 15 days?

The CR is only necessary because we don't have a budget for the federal fiscal year that began October 1, 2010. Why? Congress was busy on other things. What was so important that agreeing to a budget had to be postponed? You tell me.

That's why I'm depressed. The people running the government seem to be out to lunch. They put politics before governing. Getting re-elected is their primary focus. It's disgusting. It's time to throw the bums out. Well, voters did some of that in the mid-term. We'll see if that helps.