The horse trading that has become standard in Washington resulted in something that each party can use to rally their base this fall. The Republicans got an estate tax break and the Democrats got a minimum wage hike. From the Washington Post:
The House, at about 1:30 a.m. yesterday, voted 230 to 180 to raise the minimum wage to $7.25 an hour, from the $5.15 rate on the books since 1997. The bill also would exempt from taxation all estates worth as much as $5 million -- or $10 million for a married couple -- and apply a 15 percent tax rate to inheritances above that threshold and as much as $25 million. For estates exceeding $25 million in value, the tax rate would be 30 percent.
We are in a transitionary period in our economy the likes of which we have not experienced in over a hundred years. Our economy is becoming more and more dependent on entrepreneurs for growth. And yet, our politicians keep dancing the same dance that they have since the beginning of the big government era that started in the middle of the last century. This is no longer a time to horse trade between unions and corporate America. If we don't wake up, we face economic atrophy that will assure that the US will be a second rate economic power within the next 20 - 30 years, if not sooner.
Our agenda needs to shift to one that will get government out of the way of our entrepreneurial economy. Instead our politicians are rearranging the chairs on the deck of the Titanic...
