2011 will begin just as 2010 ended. Middle, low income and working class Americans being held financially hostage by wealthy America. Keep in mind, this hostage situation is not one that the wealthy should take responsibility (or credit) for creating;  the strong arm of politics, not economics, is to blame.

 After complaining about the the current state of federal deficit and suggesting we can’t extend unemployment benefits (unless we cut from somewhere else), the GOP gladly accepted an Obama tax compromise that will continue to inflate the deficit, provide tax breaks for their wealthy friends and extend unemployment benefits for certain Americans. While some suggest this was a perfect piece of legislation — after all there is something in it for everyone to like and something in it for everyone to hate —  the underlying and most important fact is this was good for America.

 Not everyone is going to see this compromise as a positive move. The progressive in me would have preferred to join Vermont Sen. Bernie Sanders for his 8-plus-hour filibuster. That part of me is angry that my party is again letting the GOP off the hook and not holding them accountable. No one is holding the GOP to their word. The strongest argument the GOP came up with against extending unemployment benefits was that they would help make the deficit deeper. A deficit that in part was created by their own tax cuts. There are fundamental differences between our parties, lets not muddy the waters through compromise. Give me the fuel for the political fight we’ll need in 18 moths.

 The realist in me also knows that without the deal, the GOP would allow thousands of Americans to loose their unemployment benefits, and when the new session begins the GOP would have enough votes to pass tax breaks for the wealthy.

 Like it or not, there are many people who advise the president on the potential political ramifications of everything he does. This tax deal showed his willingness to move to the center, be willing to compromise and be less partisan. These are characteristics that tend to be appealing to independent and centrist voters. This would be one of the few times I would like to thank the GOP for something, their willingness to compromise was a gift for Obama supporters and a potential boost for 2012.

 While there are political realities to this deal there are some very real economic uncertainties in our county. Job growth is minimal and while the wealthy are getting tax cuts; economic trickle down theories aren’t working and the poor and working class are experiencing few new opportunities.

 Corporations are taking billions of dollars and keeping it for themselves and not investing in infrastructure, research, development and actually hiring more people. The money that is resulting from tax breaks for the wealthy is not being recirculated, it is simply being tucked under a mattress somewhere (or a bank in Switzerland or the Cayman Islands).

 Lets look at the numbers: According to Professor G. William Domhoff of the University of California at Santa Cruz, the top 1 percent of households own 34 percent of the wealth, the next 19 percent have 50 percent of the wealth. This means that just 15 percent of the nation’s wealth is controlled by 80 percent of our population (these are the wage-and-salary earners). These wage earners (fortunate enough to have jobs) pay also pay a greater percentage of their wages to taxes and health insurance then the top 20 percent of the wealth holders.

Admittedly, at one time tax cuts for the wealthy may have made good economic sense. However, in the current economic climate those who benefit from such tax cuts aren’t sharing it like they once did, generally speaking they are not reinvesting. During this time of year, it is hard not make a comparison to Mr. Scrooge.

 The problem with elected officials (from both sides of the aisle), is that most of the time they aren’t very good at touting the party line. President Obama is a prime example of doing just that. Candidate Obama was elected due to his popularity with centrist and independent voters. The Democratic Party will not likely go way left (like the GOP has gone way right with the Tea Party), while the progressive wing of the party may complain a bit, in the end they will be there for Obama. To claim a second term,  Obama will again need the support of independent voters; the tax compromise will help in that regard.

 The tax deal made good economic sense (everyone got something), good political sense (from an electability standpoint), but bad political sense from the perspective of those who would prefer the Democratic Party go more progressive and return to our guiding principals and platform. In the end, as Meat Loaf would say, “Two out of three ain’t bad”.