By: Jeffrey Klein
Examiner.com

In an effort to make the “best” of a bad situation, where very little is expected from Congress this year anyway, a draft deal was cut by both parties to extend the 2 percent payroll tax holiday, long term unemployment benefits and the so-called “Doc Fix,” through the end of the year.

House Republicans chose to forgo “budget cuts” to fund the measure, and at the same time, Democrats quickly decided to drop their demand for a “surtax” on all income of millionaires and billionaires.

Senate Finance Committee Chairman Max Baucus (D-MT), one of the bargainers on the legislation, was quoted as saying … “I think a lot of people [Congressmen] realize [that] Congress is not enjoying a great reputation. Both sides recognized the need to get this done,” according to an Associated Press article today.

His sentiments were echoed by Rep. Dennis Ross (R-FL), who said … “I think that’s what the mood is–we’ve got to move onto another issue.”

Although there will be no offsets for the $100 billion that will not go to the Social Security Trust Fund, which impliedly be covered by general revenues or borrowing down, whenever the “can” stops rolling down the road–lawmakers did agreed to several alternative budget “savings” sources to pay for the remaining $50 billion of the package.

Medicare payments to doctors would be paid for by reducing Medicare reimbursements to hospitals–at least they are “corporations” and not “people,” or voters, like doctors.

There would also be about $5 billion cut from an $8 billion Obamacare program aimed at battling obesity and smoking.

Long term unemployment benefits, which will be gradually reduced from 99 to just 63 weeks by the end of the summer, will be financed with sales of some broadcast airwave bandwidths to wireless companies.

And lastly, by raising federal workers’ contributions to their pension plan.

This AP article reported that … In private, some Democrats called it a victory, … because the entire measure won’t be financed with spending cuts and other savings.

Hmmm.

If not “budget cuts,” what are: “reducing” Medicare reimbursements, “cutting” 60% of an Obamacare program, a 33% “reduction” of the unemployment maximum benefit period, and an “increase” in federal employee pension plan contributions?

Republicans were determined not to allow Obama to “tattoo” the party with the responsibility for a “do nothing Congress,” by standing in the way of a middle-class tax cut.

Instead they wanted to quell this controversy, and create a clear channel to deliver a clear message of opposing tax increases, higher spending and Obama administration regulations that stifle job creation, during the coming election year.

Finally, according to the article, the Associated Press believes [that] … “Once finalized, the [extension package] measure would be an election-year victory for President Barack Obama, who made the payroll tax cut…

…a keystone of his largely ignored jobs creation plan.

There is such rich irony in their choice of words.

As I see it, Obama, by twice rejecting the Keystone pipeline deal, proves that…he largely ignored his own job creation plan.

So how can he blame the rest of us for not taking it seriously?

Copyright (c) 2012 by Jeffrey Klein