WaPo:Among Democrats, economic pressures are changing tax-cut dynamics

[bluestateboomer]

We still won't stand up for the little guy.

********

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.

More: http://www.washingtonpost.com/wp-dyn/content/article/2010/08/26/AR2010082605951_pf.html

[RandomThoughts]

1. And if they vote to protect the rich at the cost of the poor.

Then why would it matter if they get elected anyways?

it is circular logic, sell out an ideal to get elected so that you can do what? Sell out your ideals to get elected?


I heard again on the news a Repub talking about tax raises, and nobody stepped in to mention the tax cut that occurred for 95% and how the raise in taxes would be on riches only. Or maybe that is not true :shrug: LOL


Just jack it up to 50% and extend the social security to all income, and make estate and capital gains taxes equal to taxes on people that work.

Why wouldn't they be the same for those with less? If they try to leave country, tax them for any business done in USA, or seize assets.

Why are people worried about it, you really think it can get any worse?


People don't get it, they are trying to hang onto a broken system geared for bad reasons because they fear the inevitable caused by that system. If the system can cause such bad, then why leave it in any control?

[depakid]

2. Pravda at it again

They surely do WANT their Bush tax cuts preserved (at the expense of the budget deficit that they rant constantly about).

[griffi94]

3. i'm sure the democrats

would like to do something to help the working class, but working class folks don't fund political campaigns, and working folks don't pay 6 figures to ex-politicians for consulting and lobbyist jobs.

i think it's getting harder to deny that with rare exceptions wallstreet owns both parties.

[MrModerate]

4. If I thought that dems could lose the House . . .

by shedding conservadems while retaining real Democrats, I'd say it was well worth it. Conservadems are precisely why dems in general are losing the confidence of the electorate -- not because they're too radical, but because they're too conservative (and spineless).

Get rid of the DINOs: demographics are on the side of progressive causes.

[smoochpooch]

5. Democrats find a way to screw things up again.

Poll: 56% believe tax cuts should expire for those making over $250,000 http://www.cbsnews.com/8301-503544_162-20014851-503544.html

Yay, let's renew the tax cuts that 1. the public is against and 2. cost billions of dollars!!! This will win us elections for sure!!

[girl gone mad]

6. I will go out on a limb here.

Letting these tax cuts expire will hurt the economy, regardless of the regressive structure of these cuts. That's simply economic reality.

These tax cuts were not a good idea when they were passed, for any number of reasons. However, now is not the time to risk deepening the recession by pulling more money out of the private sector. There is absolutely no reason to do so while our interest rates remain low and inflation is virtually non-existent. I would prefer to see something along the lines of a full payroll tax holiday, but is there any chance of that happening this year? Is there anyone pushing for an equally big tax break with a more progressive structure?

If the Republicans fight and vote to keep these tax cuts, they will have ceded major ground on the deficit hysteria which will give the administration cover to push for much needed spending for programs to get people back to work.

We can raise taxes on the rich when circumstances change. Now we are in a real crisis and anything which reduces the federal deficit will only cause more pain.

[Angry Dragon]

8. I disagree

If the republicans want to cut taxes for the rich then let them introduce the bill.

The way it is now the law says taxes will increase on the richer people. That is the law.
If they want to change the law then in effect they will cut taxes for the more wealthy.

Now is the time to let the current law take affect.

[girl gone mad]

9. What's the back up plan..

when the economy nosedives?

[Angry Dragon]

12. I do not believe it would nose dive

I believe the country would be stronger if letting the tax cuts expire as planned.
I would even go further and put a number of additional tax brackets in place
for the super rich.

[TheWebHead]

10. you are right

not to mention the net effect of raising the taxes will be less revenues. A major reason the stock market is down for the year is the fear of taxes going up, not only because it retards economic growth by removing disposable income from the segment of the population most likely to spend but it takes that new money away that would otherwise go towards investment. Markets generally punish behavior unfriendly to capital to a degree much higher than the revenues a government would otherwise hope to capture - whether that be through higher taxes, bond defaults, nationalization, tariffs or printing money.

[jmowreader]

7. I think you know what the real problem is

The REAL problem is all the big-name Republican talking heads are in the tax bracket that would get their taxes raised. The first thing that would happen is, they'd all go on the air and say YOU got your taxes raised. It wouldn't matter if the rest of the electorate had its taxes eliminated; Rush Limbaugh would tell them their taxes were higher and they'd believe it.

[saracat]

11. Would any have believed it if someone had told you Dems

would be defending the tax cuts for the rich? I never thought I would see anything like this. And oddly, the argument is the very same one that is always used. This is frightening. No economic justification can make this acceptable. None.