In his State of the Union address on Tuesday night, President Barack Obama called for economic fairness, which he and the Democrats define as using government to reduce the gap between the very rich and middle class. The president unveiled a list of measures the administration will pitch to Congress. Given the current hostility between Republicans and Democrats, only a few will likely be successful. In fact, Republicans had nothing but criticism for the president's speech.
That's not a surprise; Democrats were never known to respond to former President George W. Bush's proposals with enthusiasm. But the divisive response to the latest State of the Union address is not encouraging to future bipartisanship, or accomplishments.
Proposals that have a chance to receive bipartisan support include eliminating tax breaks for corporations that move jobs out of the country. Also, incentives for job-related investments within the United States we imagine will be popular.
More iffy proposals include more favorable mortgage terms for distressed homeowners and tighter regulation of the financial sector.
To illustrate what he described as "economic fairness," Obama wants to increase the taxes on wealthy Americans who live on earnings from investments. These capital gains are taxed at a maximum of 15 percent. This will likely be opposed by Republicans, who argue that lower capital gains taxes are an incentive to reinvest the earnings into the economy.
The president seems aware that much of his agenda will be blocked. In a defiant tone that is sure to appeal to his base, he promised to enact some of his agenda by executive order if Congress refuses to move it forward. That tactic is, ironically, one that former President W. Bush occasionally used to the ire of Democrats.
There was little mention of foreign policy. However, the president promised to use savings derived from the winding down of current wars toward rebuilding the economy.
In the speech, Obama accused Republicans of wanting to damage the economy again. In return, Republicans accused the president of being a big-spending deficit buster. That's about where we stand today. Political dysfunction reigns in Washington D.C.
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