Senior Democrats consider extending full array of Bush tax cuts through next year (WP)

[mike r]

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/26/AR2010082605951.html

Among Democrats, economic pressures are changing tax-cut dynamics
By Lori Montgomery

With the economy rapidly weakening, some senior Democrats are having second thoughts about raising taxes on the nation's wealthiest families and are pressing party leaders to consider extending the full array of Bush administration tax cuts, at least through next year. This rethinking comes barely a month after Democrats trumpeted plans to stage a high-stakes battle over taxes in the final weeks before the November congressional elections.

The Bush tax cuts are set to expire in December. Republicans are pushing to extend them all, while President Obama has forcefully argued that the country cannot afford to keep tax breaks on income over $250,000 a year for families and $200,000 a year for individuals. But a growing cadre of Democrats - alarmed by evidence that the recovery is losing steam and fearful of wounding conservative Democrats in a tough election year - are advocating a plan that would permanently extend tax cuts benefiting the middle class while renewing breaks for the wealthy through 2011, senior Democratic aides said.

That idea has long appealed to some conservative Democrats in both chambers, who argue that Congress should not raise anyone's taxes until the economy is more stable. But Democrats said it has gained momentum since economist Mark Zandi, a key adviser to House Speaker Nancy Pelosi (D-Calif.), adopted that view during a presentation at a Democratic issues conference in California in mid-August. Zandi, an adviser to the presidential campaign of Sen. John McCain (R-Ariz.), later played an important role in designing Obama's economic stimulus package, enacted by Congress last year. In an interview, Zandi said he supports a one-year extension of tax cuts for the wealthy - with the cuts phased out starting in 2012 - in part because election-year anxiety about budget deficits is preventing Congress from approving additional stimulus in any other form. He acknowledged that tax cuts for the rich tend not to be an effective way to pump money into the economy because they tend to save it rather than spend it.

"Normally, I would firmly agree that raising taxes on people who make over $250,000 a year would not make a meaningful difference in the way they spend money. But I worry that these aren't normal times and that even this income group may be sensitive," Zandi said, noting that the top 3 percent of households account for a quarter of all personal spending. "With 9.5 percent unemployment - which is clearly going to move higher - raising taxes is a gamble that is unnecessary," he said...

[napi21]

1. I sure HOPE Obama vetoes it1 nt

[Bluebear]

17. hahahahahahaha

[Lorien]

20. +1. Anymore all we can expect is more disappointment

and yet another reason not to vote for these GOP wannabes.

[sandnsea]

2. Conservative = Blue Dog

Equal Missouri, Arkansas, Kentucky, North Carolina, Florida.

Some Senate seats we can use.

The most important thing the left can do is figure out how to take a liberal message to those states, not how to beat the fuck out of the states who are already on your side.

[LawnKorn]

24. Senior Democrats taking the Republican position on taxes? Makes me wonder if they are true Democrats

We need to elect Democrats that hold to the platform of the the Democratic Party and display authentic progressive / liberal ideology. Playing nice with Republicans only benefits Republicans. There is nothing good to come out of a compromise with a Republican; the only correct path to follow is the one on the left side. We know what the answer is, we only need to muster up the will to implement it.

[sandnsea]

29. They're the ones running for Senate

Until the people in those states hear and choose a progressive agenda, they'll keep electing conservative Dems to run for Senate who support stupid-ass shit like extending the Bush Tax Cuts. See Robin Carnahan.

Do you prefer Senator Roy Blunt??

That's your choice if you're in Missouri. And that's what you've got to deal with if you're deciding what legislation to put forward between now and November.

[tularetom]

3. Yeah, because tax cuts for the rich have worked so well for the past 10 years

I suggest that no congressional or administration Democrat be allowed to watch TV.

They are absolutely terrified of the shit they see on cable news, because they actually believe the propaganda that gets thrown at them day in and day out instead of listening to their constituents.

If trickle down economics was going to trickle down it would have trickled down by now.

Investment is not taking place. Jobs are not being created. People are hoarding their money, especially rich people, because they fear what's coming.

[Radical Activist]

11. Are you actually believing the propaganda

that is this article? It's pretty transparent bullshit if you read it with a little skepticism.

[tularetom]

28. I believe very little of what I read

Let's just wait for the vote shall we?

The administration could have seized the initiative on this matter by proposing the "Obama middle class tax cuts" of 2010 and forcing the republicans to defend the continuation of the bush tax cuts. But as usual they sat on their ass and let the republicans take the initiative and now they find themselves being accused of proposing tax increases and they are the ones on the defensive.

Of course the article is bullshit. But the bullshit never gets "refudiated" and the longer it remains unchallenged the more spineless congressmembers start to believe it.

[Radical Activist]

30. Obama already did a round of middle class tax cuts.

I'm fine with deficit spending but I don't think another round of tax cuts makes sense right now.

[Marr]

4. If they extend the Bush tax cuts for the wealthy, *and* make cuts to Social Security...

the Democratic Party is over. Mission accomplished. Congratulations, Wall Street.

[myrna minx]

5. I can't wait to read on DU about how this is a wonderful idea.

I'm sure it's a rather sensible and pragmatic approach in these times.

[liberalmuse]

6. Washington Post?

I shall need a better source before I go off half-cocked on this one, LOL.

[Radical Activist]

10. Isn't it interesting that they don't name any of these mysterious "top Democrats"

and then say that Congressional Democratic leaders and the administration are still in favor of repealing the Bush tax cuts for the wealthy? Isn't the definition of a "top Democrat" someone who's a leader in Congress or the administration? Since they're all sticking to their position, who else is there? Bozo the clown and his pet monkey?

[Radical Activist]

7. Who exactly, besides this one advisor?

This smells like the Washington Post is creating a story because they wish it were true. It's campaigning, not reporting.

The end of the article says:
"Obama administration officials and the Democratic leaders of the House and Senate, meanwhile, say they are determined to stay the course and still hoping to spend September and October on a debate that forces Republicans to defend expensive tax breaks for a tiny, wealthy minority."

Notice that "stay the course" language? It implies that they need to be doing something different. This is nothing but propaganda.

[pnwmom]

8. What if we traded a one year extension in exchange for

a large stimulus bill -- e.g., a major public works program rebuilding the infrustructure -- the kind we SHOULD have passed last year?

[napi21]

23. THAT would be silly! cut your possible revenue then spend a ton

on another program!

There's also that silly lit"Bush tax cut " demise that has been used numerous time already to "fund other new programs. I kow I used to laugh at how manytimes I've heard "endig the bush tax cuts will pay fr or help oay for this". I know Healt Car was one of them. Now that those funds have been overused to fund other programs that are already in place, someone's talking about letting them renew? HA! What a damn joke! They must all think none of us know how to count!

[bluestateguy]

9. Mark my words on this

If those taxcuts are "temporarily" extended, they will never go away.

[kentuck]

21. Yep...

If they can just make it past November...Of course, the new Congress will not take over until after January 1st. By then, the taxcuts will already have expired. We hope.

[hfojvt]

12. okay

Pelosi's number is 202-225-4965. I will give her a call tomorrow.

But google tells me she recently said this;

http://blogs.abcnews.com/thenote/2010/08/speaker-pelosi-blasts-boehner-economic-plan.html

“Today, House Republican Leader John Boehner did the public a favor by revealing the Republican plan to return to the failed Bush economic policies that produced a deep recession, record deficits, a loss of 8 million jobs and an unprecedented financial crisis,” Pelosi said in a paper statement. “America must continue to move forward in a new direction, not back to the ‘exact same agenda’ of the Bush years.”

But Boehner can say what he said because apparently the House still has not passed an extension of the Bush tax cuts for people with incomes under $200,000. What is the hold-up?

[griffi94]

13. and the hits

just keep on coming. i wonder what's next.

[Bitwit1234]

14. So Democrats we worked our butt off to elect

want to give to the rich and take from the poorest, Seniors. AIN'T THAT SOMETHING. I guess that means that those that want to extend the tax cuts would be effected and have to pay higher taxes so they still want them. You know like the voted against the $250 for seniors then they each took about 1500 a year salary raise for themselves. How in the world can you get a decent honest bunch of people in congress. I know...I know....pass that bill about campaign finances AND GIVE THEM TERM LIMITS.

[MannyGoldstein]

15. No shit? This is shocking.

Fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck fuck ...

[cilla4progress]

16. If you're going to go down,

at least go down fighting for what you believe in.

[kentuck]

18. I would expect the Democrats on our side would stand up to these...

weak-kneed ones that don't really deserve to be in the House or Senate and I would expect the President to take the side of our Democrats and veto the bill if such a travesty is passed.

[Frank Booth]

19. An economist who worked for McCain is dictating Democratic policy.

I guess I should be happy he's not from Goldman-Sachs.

[Hawkowl]

22. Freedom isn't FREE!

Why are rethuglicans and senior democrats trying to take our freedom? Freedom isn't free motherfuckers!

Raise the goddamn taxes and pay for our FREEDOM!

[Ikonoklast]

25. This entire article is speculative bullshit. "Some people say..."

OF COURSE the Blue Dogs want to keep the tax cuts for the billionaires, as they are DINO's and fellate the monied interests, but this is WaPo B.S.

[ipaint]

26. These are the same people who can't figure any other way to

fund a bill to keep teachers working than cuts in an underfunded food stamp program for poor americans.
The rich always take care of their own first and foremost.

[DailyGrind51]

27. If Republicans assume the majority, those cuts will remain permanently!

Let them expire NOW!

[QC]

31. Did anyone *NOT* see this coming? n/t

[Enrique]

32. trickle-down! n/t

[kentuck]

33. Where do they get the idea that extending the taxcuts is smart politically??

It is dumb and even most tea-baggers know that. They are simple chickenshits, not deserving of sitting in the US Senate.

[txlibdem]

34. Floating a trial baloon

to gauge public outrage (or lack thereof) if they did actually extend the tax cuts.

Let's let the bastards know that we are outraged that they would even think of keeping the tax cuts for the wealthy. Let them know that keeping this idiotic and unproductive giveaway to the rich, raising the age for social security or decreasing SS benefits in any way will be political suicide.