Should Obama be giving a rescue plan to states in trouble?

If you look at how easy Obama went on Wall Street and then how they responded with millions in cash to the GOP, this move doesn't look good. Then consider how Texas used the federal stimulus cash to cover 97% of the state deficit and how Perry and the state GOP bashed the stimulus. It's hard not to feel compassion for those suffering in states run by complete goons but at the same time, this feels like another loser for Obama. Without concessions from the GOP governors for supporting his agenda or even getting them to scream 'uncle' in public, it's hard to see this as anything other than a winner for the GOP governors.

Obama needs to learn how to play hardball with the Republicans but it's doubtful he ever will. At this point it's obvious that he doesn't have the stomach for confrontation. Meanwhile, it's almost as though he has a sign on his back that says 'kick me' and the GOP (who put it there) are happy to oblige. If those states bounce back, the governor takes credit. It's important that those states do bounce back though it's also important that any policies from Obama are given proper credit. It doesn't seem likely that that would happen with any Republican. This doesn't pass the smell test.President Obama is proposing to ride to the rescue of states that have borrowed billions of dollars from the federal government to continue paying unemployment benefits during the economic downturn. His plan would give the states a two-year breather before automatic tax increases would hit employers, and before states would have to start paying interest on the loans.

The proposal, which administration officials said would be included in the 2012 budget that the president is scheduled to unveil next week, was greeted coolly by Republicans on Capitol Hill, who warned that the plan would ultimately force many states to raise their unemployment taxes in the years to come.

But the White House is calculating that the proposal will ultimately appeal to Republicans because it involves a tax moratorium right now for hard-hit states during a still-fragile economic recovery.