Apparently, in spite of how much we were told how "critical" and "important" it was that this bailout was passed "immediately," the U.S. Senate still found time to load up the bill with special projects and pork. Some of the goodies in this bill include an exemption from a 39-cent excise tax for children's wooden practice arrows, an extension of credits for businesses that employ residents of Indian reservations, millions for filmmakers, and wool research. No, that's not a typo, it really is for wool research.
Just because there is a tax credit or a tax deduction does not make it conservative, let alone responsible. Tax breaks that are not outright cuts are essentially paid for by other taxes (or in our case, the Chinese banks that fork over the money to cover our deficit). This bill is the signature achievement of the GOP losing all credibility on fiscal issues.
It is embarrassing. This was the biggest crisis and test of leadership either McCain or Obama will get during this campaign. And now the results are in ... Obama (no surprise) had no idea what to do and "if'ed and um'ed" on the sidelines. McCain, in what was quickly labeled political calculation, suspended his campaign only to come back to Washington to make no meaningful contribution to the legislation outside of his vote. Instead, he looked like someone aiming to take credit for a compromise, and in its place, voted for legislation that eliminates any credibility he had on the need for spending cuts and responsible use of the taxpayers' money. How, if we can't trust him to be fiscally responsible on the big issues, can we trust him to be on the little pork barrel projects that he will blow out of proportion for political gain?
It's simple, we can't. Surely, one cannot whine and complain about how the Bush tax cuts were bad on spending grounds and then wholeheartedly endorse this. Worst of all, McCain fails to see the contradiction. Which means he is either stupid, or he thinks we are. And well, I know I am not.
There were fiscally responsible alternatives. The House GOP proposed several of them yesterday, and some of them were so persuadable to even make it into the final legislation (such as market-to-market accounting). Had they been part of a larger, more fiscally responsible alternative, had McCain led the charge for such a reform, he would not only have solidified his credentials as a fiscally responsible spending hawk, he would have shown leadership in a time that demanded it. All America got from this embarrassing exercise is the knowledge that most politicians in Washington really have no idea how the economy works.
William J. Haun Senior in the School of Public Affairs and former president of the AU College Republicans.
