Democrats will lose now. But they can win later (when Boosh tax cuts expire).

[jefferson_dem]

Democrats will lose now. But they can win later.
By Ezra Klein

Democrats are going to lose this one. The first stage of the emerging deal doesn’t include revenue, doesn’t include stimulus, and lets Republicans pocket a trillion dollars or more in cuts without offering anything to Democrats in return.

The second stage convenes a congressional “Supercommittee” to recommend up to $2 trillion in further cuts, and if their plan doesn’t pass Congress, there’s an enforcement mechanism that begins making automatic, across-the-board cuts to almost all categories of spending. So heads Democrats lose, tails Republicans win.

It’s difficult to see how it could have ended otherwise. Virtually no Democrats are willing to go past Aug. 2 without raising the debt ceiling. Plenty of Republicans are prepared to blow through the deadline. That’s not a dynamic that lends itself to a deal. That’s a dynamic that lends itself to a ransom.

But Democrats will have their turn. On Dec. 31, 2012, three weeks before the end of President Barack Obama’s current term in office, the Bush tax cuts expire. Income tax rates will return to their Clinton-era levels. That amounts to a $3.6 trillion tax increase over 10 years, three or four times the $800 billion to $1.2 trillion in revenue increases that Obama and Speaker John Boehner were kicking around. And all Democrats need to do to secure that deal is...nothing.

<SNIP>

Republicans have shown, that they will block any and all tax increases, no matter what incentives they are offered in return and no matter how dire the consequences of their refusal. Next year’s deadline offers Democrats their only chance to negotiate from a superior strategic position. Republicans will still be able to refuse to raise taxes. But if they do, it won’t matter. The only way they can succeed in keeping taxes from rising is if the Obama administration and the Democrats stand shoulder-to-shoulder with them to extend the Bush tax cuts.

http://www.washingtonpost.com/blogs/ezra-klein/post/democrats-will-lose-now-but-they-can-win-later/2011/07/11/gIQARfWOlI_blog.html

[msongs]

1. lol dems allowed tax cuts to continue, assumes they will actually LET them expire nt

[tularetom]

4. +1

You can almost see it coming. Some other phony baloney crisis will be dreamed up and Obama will give away the expiration of the tax cuts in return for the republicans ending the fake crisis.

[DrToast]

2. We'll probably end up cutting taxes to compromise

[potone]

7. That made me laugh.

Unfortunately, it is all too possible. But thanks for the comic relief in the midst of this madness.:hi:

[Autumn]

3. And on Dec. 31, 2012, the republicans will

take another hostage and boom, Obamas and Bushs tax cuts are extended. Seen this movie before.

[Armstead]

12. The GOP will be preparing the drapes in the WH after winning the Presidency and all Congress

That unfortunately is what Obama and the Republicans have just made more likely.

[awoke_in_2003]

18. yep...

it worked when the repubs "forced" the dems to extend them the last time.

[treestar]

21. Like what?

[boston bean]

5. the majority of people in the US of A, you know the middle class, will just love it that their taxes

are going to increase.

Unless there is something in the details where it separates the middle class and wealthy cuts, we are in the same exact spot we were in prior.

The democrats will be accused of raising taxes all next summer. And it will be true as they negotiated it in this deal.

Or they will have to try to re-legislate the tax cut for the middle class, with cuts ending for the wealthy.

Anyone really think that is going to happen?

[Autumn]

13. Tax cuts ending for the wealthy?

Not in our lifetime.


"The democrats will be accused of raising taxes all next summer. And it will be true as they negotiated it in this deal." That is what will come out of this. A Republican attack add written by the Democrats.
:banghead:

[awoke_in_2003]

19. I make 70k a year...

Bush's tax cuts affected my paycheck less than a whopping $5 every two weeks.

[ProSense]

6. Ezra wrote that

before the Senate killed Boehner's bill.

Premature!

[jefferson_dem]

9. I don't think so. Dateline: Posted at 11:36 AM ET, 07/31/2011

[ProSense]

22. Here:

Democrats Can Lose Debt Fight, Win on Bush Tax Cuts: Ezra Klein

[BlueIdaho]

8. Seriously?

Here's what will happen. A small group of radicalized right wing House republicans will manufacture a monitary crisis and threaten to push the US economy over a cliff unless the President and elected Democrats capitulate and make permanent the Bush tax cuts.

Are we no paying attention?

[Cali_Democrat]

17. Same old song and dance. n/t

[BlueIdaho]

10. Sorry - dupe.

[BeyondGeography]

11. Been there, haven't done that

[woo me with science]

14. Right after they fix the economy and health care and the Patriot Act and the TSA

and right after they cut the Pentagon budget and close Guantanamo and create some jobs, and fix all the other things they promised to fix later.

Yeah, right after that.

[Mojambo]

15. And the last line is exactly what will happen. n/t

[florida08]

16. cuts with no revenues

mean no growth. Cuts to fixed incomes means more welfare/food stamps.. but really love this

$2 trillion in further cuts,and if their plan doesn’t pass begins making automatic, across-the-board cuts to almost all categories of spending Still no reveues

Wealth redistribution to the top..I'm done..economy is done..America is done

[jefferson_dem]

20. if tax reform doesn’t happen through the super-committee, President Obama will veto any extension...

Also Democrats say –- if tax reform doesn’t happen through the super-committee, President Obama will veto any extension of Bush tax cuts when they come up at the end of 2012, further creating an incentive for the super-committee to act.

http://blogs.abcnews.com/politicalpunch/2011/07/negotiating-all-but-done-for-27-trillion-deficit-reduction-deal-now-comes-the-selling.html

[florida08]

23. feeling better now

They have to bring revenue if there is to be any hope..if it's not to late


"In 2010, when all the Bush tax cuts are finally phased in a staggering 52.5 percent of the benefits will go to the richest 5 percent of taxpayers."

"The tax legislation enacted under President George W. Bush from 2001 through 2006 will cost $2.48 trillion
through 2010. This includes the revenue loss of $2.11 trillion that results directly from the Bush tax cuts as well as the $379 billion in additional interest payments on the national debt that we must make since the tax cuts were deficit-financed." (added to the national debt)

Now they're lying their tales saying Obama doubled the debt..when it was George effing Bush that did that.

"Obama's 2010 budget deficit was 250 billion LESS than Bush's 2009 record budget deficit of $1.5 Trillion."


Democrats have got to refute these lies and more importantly raise taxes of salaries over 300k

[Warren Stupidity]

24. Right - 'cause that played out so well last time around.

The republicans will take a hostage and we will concede and some people here will be cheering on the concession as the best we could do under the circumstances.