Politico: Democrats win key tax fights in emerging fiscal cliff deal

[boxman15]

The emerging fiscal cliff deal is enough to leave Republicans with a major New Year’s hangover.

The package being negotiated by Senate Republican Leader Mitch McConnell and Vice President Joe Biden amounts to a defeat for the GOP on multiple fronts.

It not only raises tax rates, but also extends stimulus-era tax policy, prolongs emergency unemployment benefits, maintains targeted tax breaks derided by the party as corporate handouts and revives limits on deductions for the wealthy that have been dormant for almost a decade — all policies that the GOP has fought. It’s expected to raise $600 billion over 10 years.

Above all, the emerging deal would shatter 20 years of Republican orthodoxy on taxes, undercutting a core part of the party identity that had been built around giving no quarter to any tax increase — ever. An eventual vote on this tax package would mark the first time any Republicans have voted en masse on a tax increase since President George H.W. Bush famously recanted on his “read my lips” promise.

SNIP

In an afternoon appearance at the White House, President Barack Obama touted the deal for raising tax rates on top earners. But perhaps the most symbolic win for Democrats is the continuation of key stimulus-era tax provisions.

Read more: http://www.politico.com/story/2012/12/democrats-win-tax-fights-in-emerging-fiscal-cliff-deal-85625.html#ixzz2Gg7zsKVQ

And DU is saying the president caved?

[ProSense]

1. It's Politico. Think Progress:

Everything You Need To Know About The Emerging ‘Fiscal Cliff’ Tax Compromise

By Travis Waldron

Senate Minority Leader Mitch McConnell (R-KY) and Vice President Joe Biden have reportedly reached an agreement that would solve the tax side of the debate over the so-called “fiscal cliff,” the package of tax increases and spending cuts that will begin automatically at midnight tonight.

Senate Majority Leader Harry Reid (D-NV) and the Democratic caucus have not yet indicated support for the compromise, which extends most of the Bush tax cuts and other tax provisions, and while the Senate may vote tonight, no vote is expected in the House before tonight’s deadline. Here is a breakdown of the different provisions of the reported compromise:

<...>

The reported McConnell-Biden compromise does not deal with the spending cuts side of the fiscal cliff, though CNN’s Dana Bash reported that the sequester may simply be delayed for two months. The spending cuts are the part of the fiscal cliff that the Congressional Budget Office says would be the most damaging to America’s economic growth. It also does not include an increase in the debt ceiling, setting up another fight over the coming months like the one that created the fiscal cliff in the first place.

http://thinkprogress.org/economy/2012/12/31/1381631/everything-you-need-to-know-about-the-gops-fiscal-cliff-tax-proposal/

[1-Old-Man]

2. One can only hope ...

[W_HAMILTON]

3. Yes.

Maybe if this "deal" was the end of it, it would be worth accepting. But it's not.

It doesn't include anything about the debt ceiling and from all I've heard is it temporarily delays the sequestration spending cuts by one to two months.

That means we are going to have this same fight in just a few short weeks, when the debt ceiling must be raised and when spending cuts must be dealt with. And when that time comes, the Republicans will claim that they already compromised with this deal and they will not give way on anything. They will have the leverage because it will be another fiscal cliff (this time only involving spending cuts, something they want anyway) and they will use the debt ceiling as a political tool like they did before. And what will Obama have for leverage then? Nothing. What will the Republicans concede to Obama in exchange for his compromising? Nothing, taxes will have already been taken care of through this deal.

It's a sham. Go over "the cliff" and start passing piecemeal legislation to climb out, e.g., lower taxes for those making under $250k, reinstitute unemployment, maybe reduce the cuts in military spending to "compromise" with the Republicans, etc.

PS - This deal won't end up raising taxes because it will not pass by midnight tonight. Any deal will be after we technically go over "the cliff," meaning it will reduce taxes. The Republicans will muster up just the bare minimum support for it and then boast that they voted to lower taxes. It's all political theater and it's a sham.

Once we go over "the cliff" -- which the Republicans are dead set on happening just to say they didn't vote to raise taxes -- they should lose all their leverage. There should be no compromise on taxes at that point, ESPECIALLY if such a compromise comes without any agreement on the debt ceiling or spending cuts. That just means that the Republicans are gonna pull this same stunt in a few weeks, but this time the president and all won't have any leverage with the tax situation.

[Tom Rinaldo]

4. Yup, those are my concerns also

Democrats might overall come out ahead when all is said and done, but to do so they will have to hang very tough with far less leverage than we have now. It doesn't leave me brimming with confidence. Over the long term I think the nation would suffer less if Democrats allowed all the Bush tax cuts to expire rather than moving the goal posts to the $450,000 level. Within a month we would end up with a better deal, and yes I understand that some people would suffer significant losses during that month of hard ball bargaining.

[ladym55]

5. Huh

Somehow this wasn't covered in the story I saw on MSNBC a few hours ago. This looks MUCH better than what they were blithering about.

I think many on DU are reading some of the Progressive news outlets I read. One headline from today for example: "Obama caves before the 11th hour." When I read things like that, I question what is going on. I think we all need to chill out a little.