Obama Signals Compromise on Tax Cuts

[sufrommich]

(WASHINGTON) — A chastened President Barack Obama signaled a willingness to compromise with Republicans on tax cuts and energy policy Wednesday, one day after his party lost control of the House and suffered deep Senate losses in midterm elections.

Obama ruefully called the Republican victories "a shellacking" and acknowledged that his own connection with the public had frayed.
(Read about where the rout leaves the Dems.)

At a White House news conference, the president said that when Congress returns, "my goal is to make sure we don't have a huge spike in taxes for middle class families." He made no mention of his campaign-long insistence that tax cuts be permitted to expire on upper-income families, a position he said would avoid swelling the deficit but put him in conflict with Republicans.



Read more: http://www.time.com/time/politics/article/0,8599,2029326,00.html?xid=huffpo-direct#ixzz14JkJQKFR


I consider myself a pretty typical democrat. I voted for Hillary in the primaries but quickly and totally moved my allegiance to Obama as soon as he won the primary. I've defended his actions here on DU against those who are farther left than I am.

If he capitulates on letting the Bush tax cuts expire, I'm done.

[snappyturtle]

1. Me too. Those tax cuts have hurt the economy more than cutting

spending could help. imho

[sufrommich]

2. Yep, it's a ridiculous thing to capitulate on. Let the GOP defend

their tax cuts for the wealthiest.

[Hannah Bell]

75. +100. making the assholes defend tax cuts for billionaires is a winning strategy. if he refuses to

use it, that's telling.

tax cuts to the top 2% = the biggest cause of the deficit.

[LiberalEsto]

3. "Thank you sir, may I have another?"

WHACK!

:spank:

[Xenotime]

27. Exactly.

[Le Taz Hot]

4. He really didn't learn a thing, did he?

He's sealing his fate as a one-termer.

[SammyWinstonJack]

9. Good!

[Le Taz Hot]

21. Yeah, honestly,

I'm not crying a whole lot of tears for him here. It's all so self-inflicted, isn't it? I'm SO hoping someone like Dean (or Feingold????) steps in and challenges him in the primaries.

[bigdarryl]

5. All those blue dog democrats that got there ass handed to them loved those

Bush Tax cuts and how did that work for them.They all lost

[BzaDem]

6. My guess is that he'll do a few vetoes and then agree to a compromise

where the middle class tax cuts are extended permanently but the upper income tax cuts are extended by a year. Tis what happens when liberals decide to stay home and allow 60 Republicans to be elected.

I also predict that you will whine, complain, moan, etc, but that you will be fully on board, if not in 2012 then in 2016 after discovering that your actions have consequences.

It's ironic that you are talking about capitulation, when in reality, YOU are the one that will inevitably capitulate (given your threats).

[sufrommich]

10. There is absolutely no reason for the Dems to capitulate on

this. Taxes have never been lower for the wealthy,the middle class is shrinking out of existence and the Dems can't find a way to fight this battle without a compromise?? Bullshit,if we can't win this battle, we can't win any of them. I'll vote democratic in '12 no matter who's running, but if shit doesn't stop, I'll basically be voting against the republicans.

[BzaDem]

14. The reason would be to avoid a 3 trillion middle class tax hike over 10 years. n/t

[Zhade]

69. Wow -- did you get that phrase hot off the RNC faxline?

NT!

[Hannah Bell]

76. "middle class" = bwah-ha.

[GOTV]

52. They will stay home again unless Obama gives them a reason to come out ...

... and he didn't this time. But looks like he may not.

[Zhade]

68. Your meme isn't going to play -- not when Blue Dogs got trounced and liberals kept their seats.

NT!

[RUMMYisFROSTED]

7. Out the door also if capitulation occurs.

[QC]

8. Those first three words would make kind of an all purpose, reusable headline. n/t

[BrklynLiberal]

11. Gee..couldn't he have at least waited til all the repukes were sworn into office???

:nuke: :grr: :wtf: :puke: :mad:

My sense of disappointment only grows.




http://www.progressive.org/wx110310.html
Nov. 2: The Death Knell of Corporate Liberalism

[OHdem10]

12. To be fair, Obama is now between a rock and a hard place.

No matter how this election stinks of Corporate Money
and INFLUENCE, the Republicans have the upper hand
Obama will have to choose his fights.

From now on the Right Prevails.

Our party needed to have fought back and stopped
their wins.

The Goal of the Republicans has been to get thei
legislation passed and have a Democratic Preisent
put his Impramatur on it.

You know how the Teabaggers were going to come
to DC and take their country back from Special Interests.

Rand Paul in his final speech thanking his campaigners:
"Dont'Punish the Rich, Don't Punish the Rich"
Also spromoted Free Trade. This was what COC
was paying for with their money bags.

So much for the TeaParty. Just another tool
of Corporations.

[mmonk]

13. Like Truman?

[Deep13]

15. If he waffles on this, I'll support a primary challenger.

My biggest complaints about Bush were:

1. Abandoning rule of law through cronyism and war crimes. Obama is making progress on the cronyism, but gave a free pass to war criminals.

2. Theocracy--Obama continues faith-based "charities," ignorance-only sex ed. and had charlatan Rick Warren give his keynote address. Plus he frankly lied on the "fierce advocate" thing. He gets kudos for reasonable SCOTUS picks.

3. The wars--a huge drain on our country to say nothing of what it does to Iraqis and Afghanis.

4. Tax cuts--basically a tiny bribe for the average citizen to look the other way on a gigantic shift in the tax burden from the wealthy to working people.

[kath]

50. Re: #2 - just today, there is a thread here that his Justice Dept is supporting taxpayer-funding of

religious schools.
It just goes on and on and on and on.

[AnArmyVeteran]

58. I will NOT support him if he caves (again) on tax cuts.

He has caved so much in the past 2 years I'm about to start calling him the Spelunker in Chief...

[Jack Sprat]

93. LOL. Spelunker-IC nt

[MadHound]

16. Let all the tax cuts expire.

At this point we don't need the kind of debt that they bring with them. Save the cash, take some of it and invest it in a real, live jobs creation program.

Sadly, I doubt that will happen. In the spirit of bipartisanship, Obama will extend all the tax cuts, or worse, make them all permanent.

[BzaDem]

17. There is no way he will make them ALL permanent. Bank on it.

Worst case is that they all get extended for a year or two, pushing the battle into the future.

More likely, the middle class tax cuts will be extended permanently while the ones for the wealthy will be extended for a year and then be left to expire. (While the upper class tax cuts expiring would have very little effect on the economy, the middle class tax cuts expiring will have a multi-hundred-billion dollar effect on the economy, which is why I doubt it will happen.)

None of the cash will be invested in a jobs creation program, since such a program won't pass (or even be taken up by) a Republican controlled house.

[sufrommich]

34. Obama has already said he wants tax cuts to expire for

anyone making above $250,000 a year.That's the comprimise. What else would there be to compromise on? The Dems could stick with this number and make a perfectly logical argument for going back to 2001 levels for anybody above that income bracket.The middle and working classes would support that and the republicans would expose their "concern" for the wealthy.

[BzaDem]

40. Republicans write the legislation in the House -- not Obama. They will pass a general bill that says

"no taxes will go up for anyone" and force Obama to sign it (accepting the tax cuts for the wealthy) or veto it (causing a huge tax increase for the lower 4 brackets). If he vetoes it, Republicans will blame Obama for the middle class tax hike, the media will jump on the bandwagon, and the public will probably take it in hook line and sinker. A compromise between signing and vetoing would likely extend the middle class tax cuts permanently, but only extend the tax cuts for the rich for another year.

[emulatorloo]

43. You forget that the Senate will have to write its own version. Then it all comes down to effective

messaging - get the word out about the impact on the deficit. Hammer it day after day after day.

[sufrommich]

35. Dupe. nt

[Marr]

64. Didn't you say we should "bank on" a public option, too? n/t

[Zhade]

70. Where's the evidence to support your assumption?

What's the difference between letting them expire now, and letting them expire a year from now?

[Johonny]

48. I disagree

The people that would get the tax cut are people that have seen a decrease in their real wages over the time frame. The tax cuts are the only real increase in take home money they've seen in years. They need the money. That's why conservative so afraid of "obama tax increases" are afraid of them. Meanwhile the rich are making more money than ever before. They simply need to pay more taxes because they are receiving the lions share of Americas GNP profits right now.

[piratefish08]

18. they will kick this can down the road, just like DADT.

[Brickbat]

19. I'm already done.

Chess has an endgame and the point is winning.

[CanonRay]

20. He just doesn't understand Rethugs, does he.

He's like Carter, too nice to be President. Well, at this juncture, I guess he really has no choice.

[glitch]

23. Of course he has a choice. He could choose to fight them.

He won't, but that doesn't mean he couldn't.

[emulatorloo]

28. Let's see what he does in the next few weeks. AP is kind of a LAME ASS outfit.

They spin shit positive fro republicans and neg for democrats.

Read the article - their "proof" is Obama didn't say something.

[glitch]

39. I'll keep listening. Agreed about AP. But I am not happy with his statement

on the election and his willingness to compromise. Why always be the first to compromise, even before the debate really begins?

[emulatorloo]

42. They are in "the people sent us a message" mode right now. They are setting themselves up as

"reasonable and willing to work together to solve the nations problems." All it will take is a few clashes with Boehner - then Republicans are going to get painted into the corner as the "unreasonable ones" who don't care about solving problems, just focusing on the next election.

Heard something to this effect from Richard Wolffe's sources on COUNTDoWN.

[glitch]

45. I hope you are right, but they are signaling that they received the wrong message. IMO. nt

[Marr]

61. He understands them very well. He is one.

Well, he's a lot closer to them than he is to the left of his own party, at least.

Obama can't wait to compromise, because it gets him right where he wants to be. That's why he always begins negotiations with the right by compromising "his" position by about 50%.

[myrna minx]

22. Quelle surprise! n/t

[Cresent City Kid]

24. The middle class tax cut extension should have happened pre-election

The only explanation I've heard from the Democratic leadership on why the vote was not taken was the fear of the ads the right would respond with. The ads came anyway, some worse than "Democrats will raise your taxes." I'm still not clear on what ad would specifically target a vote that extended tax cuts for the middle class except for the old meme that raising taxes on the rich is exactly the same as raising taxes on everyone.

The chance to run on "Hey, we extended your tax cut" , or "Hey, the republicans filibustered your tax cut" is over. There was a slight chance that the republicans might have not filibustered pre-election, now this is a certainty unless tax cuts for the rich are included.

Most of us predicted the Dems' Plan A, "delaying the vote on tax cuts will win us the election" would fail. How weak will Plan B be if there even is one?

[emulatorloo]

25. WHAT EVIDENCE DOES AP HAVE.

"At a White House news conference, the president said that when Congress returns, "my goal is to make sure we don't have a huge spike in taxes for middle class families." He made no mention of his campaign-long insistence that tax cuts be permitted to expire on upper-income families, a position he said would avoid swelling the deficit but put him in conflict with Republicans.

"he made no mention"

That seems like a pretty damn big case of ASS-SUME.

[Zhade]

72. Sure, he didn't say "I'll keep the b*s* tax cuts". We can read between the lines, though.

Especially given his demonstrable track record in capitulating to the Republicans on so many issues. Fool me once, etc.

[Old Codger]

26. Holy Shit

He just got his ass handed to him because he always gives it away before he even starts, then turns around and continues the same failed policy the day after ??? I sad once before that he seemed to be a slow learner, but I have to change that to a NO learner.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9474077

[BzaDem]

33. Perhaps that should cause you to re-examine your own assumption that the reason he lost is because

"he always gives it away before he starts?"

Perhaps you should realize that the above isn't true and has absolutely nothing to do with his loss?

[Zhade]

73. Your denial isn't healthy.

NT!

[MatthewStLouis]

29. Why are democratic "leaders" so scared to stand up for OUR principles?!

Compromise on the Bush tax cuts for the wealthiest 2% is disgusting... Let them expire and FORCE the republicans to TRY to reinstate them. Make sure people see republicans for who they are and who they stand for: the wealthy. Democrats need to vociferously advertise a middle class tax cut in their place--no compromises. Any democratic compromise on this looks weak and makes democrats the party of taxation (again).

[Zhade]

74. Do they share our principles? That's the real question here.

The rich -- and let's face it, nationally-elected officials are almost always wealthy -- aren't like you and me. They don't live in our world. When was the last time they had to decide between gas and food?

[gulliver]

30. This sure is a subtle signal.

He says his goal is to keep the cuts for middle class families and doesn't mention dropping the cuts for the rich. And that means he is compromising and adding cuts back for the rich?

I hate all this damned "signals" and "sending messages" talk. I want journalists to report what was said and what happened, not what they think it means.

This is why Obama should simply move his spokespeople out of the way and talk to reporters at length every couple of days. We need things straight from the horse's mouth and on a frequent basis. The way to improve the signal-to-noise ratio is to use more signal.

[Dappleganger]

31. So that's your last straw?

I completely empathize...mine was putting Arne in charge and approving of busting teachers' unions and mass firings.

[TheKentuckian]

32. The whole thing needs to go except the bottom rate.

It would be cruel to dump a 50% tax increase on those at the very bottom of the shit pile.

I can't believe this has been allowed to go on this long. We better be busy in this lame duck.

[Freethinker65]

36. Rebrand the tax cuts

The lame duck congress should let the "Bush" tax cuts expire as written. They were passed with a sunset clause by the GOP. The GOP voted to not make them permanent in the first place.

Any new tax cut should be branded an "Obama" tax cut by the DEMs, since it happens during his administration. Why not have the DEMs propose cutting more taxes for the middle/working class than the original "Bush" tax cut? Evidently deficits do not matter to the GOP when it comes to tax cuts, so go for it. Use the bully pulpit to explain how giving more money to those that actually go out and spend it, spurs the economy. Don't say you are compromising on the "Bush" tax cut. The "Bush" tax cut is history. Propose decreasing taxes slightly for high income earners under say 500K/year, 1 million/family (or try to keep it at 250K/500K) This takes care of pretty much any "hurting small business" argument. Let the GOP defend why families making over 1 million/year take home earnings (not reinvested in their businesses, etc.) should get the same break as the middle class. Explain exactly how many families, as a percentage of the US population, actually make over 1 million/year in adjusted gross income and what percentage of the country's wealth they hold... make sure to include politician names (DEM and GOP, Clinton would say something like "Do you really think I need a tax cut?" which I found effective) and CEOs of companies that have laid off workers, etc. Make the GOP defend any tax cuts to these top take home earners. These are NOT small businessmen.

I have been paying taxes for the past 30 years and although I hate the idea of where some of my taxes go, as does everybody, I enjoy the benefits our government (we the people) provide by pooling out resources. I do not need a tax cut, but the DEMS will get clobbered on this issue if they do not take the lead.

[sufrommich]

37. Very good post. Welcome to DU. nt

[meow mix]

38. a 4th bush term just what we needed

blah.

[67 Mercury]

41. Compromising with proto-fascists

What is that called. Let's call it what it is- capitulation.

You have received a Wake Up Call, ignore it at your risk.

Before getting to the meat of this, let me pause for a moment, to offer a word in defense of righteous anger. There is a certain legitimacy to raw anger. Anger is a correct & reasonable first response to injustice. By itself, it is an inadequate response to injustice. But it is an excellent foundation on which more constructive responses can be built.

And, on the other hand, the most paralyzing & crippling response towards great injustice, is docile acceptance. THAT is what the American political system & their apologists are all about — getting you to somehow resign yourself to corporatists & warmongering imperialists, who however (like Obama) are skilled in the use of ‘uplifting’ language.]

OK, now the meat. We are at a time in our nation’s history where the political system is breaking down. It is no ordinary time. Mechanisms that have sufficed since the 1930’s are now failing.

There is zero chance that our system can be fixed through the officially-approved mechanisms. Whether overtly recognized or not, there’s a war going on — the US ruling class against all the rest of us. It’s essentially a class war. The rulers want you to remain a Democrat, because the D’s are a ruling-class institution, whose job is guiding the Dem half of the populace in paths that are safe for the rulers. To remain a Dem voter, and to swallow whatever slop the party dishes up, is to passively assent to this arrangement.

Therefore, your primary focus should be on resisting & criticizing the system, not on adapting yourself to it. You should be talking with your friends & family about the very real things that are wrong. You should be trying to make whatever contribution you can to elevating political consciousness. Accepting the slop of the Dem Party is the opposite of all that: it deadens political consciousness, & only makes your enemies stronger.

Voting for candidates only works when there are decent candidates — but that’s not our situation. We betray ourselves if we fail to recognize that.

Well, looking at it historically, the “solution” has to be a break from the officially-approved mechanisms. It must have the form of a broad movement based on the interests of the bottom 80-90% of the population, rather than on the interests of the top 1%. It has to be what they call “radical” politics — something that big business and the media are definitely not going to like, any more than they like Kucinich or antiwar protestors.

The 2 parties are really just a mechanism of social control. They’re not a way for “the people” to express their will; they’re a way for rulers to control the people — partly by making them believe that they (the peeps) have some say (which they don’t). Building a movement to oppose this takes time. But its sine qua non is political consciousness — the type that socialists understand & try to cultivate; and that the big-business parties & media try to suppress & eradicate.

[Zhade]

77. Welcome to DU -- please stick around, we need more voices like yours.

NT!

[Wednesdays]

44. Okay, let's not come unglued over this.

"my goal is to make sure we don't have a huge spike in taxes for middle class families."

That is the ONLY quote in the article about taxes. What does that quote say to you? That Obama is going to roll over to the Repugs on the Bush tax cuts for the rich? Please.

All the other speculation in the article is...well, speculation. Brought to you by the corporate news media. :eyes:

[sufrommich]

46. I'm not coming unglued. I'm saying "if " he doesn't come out

in support of letting the Bush tax cut for the rich expire,I'm done trying to justify his willingness to compromise. I understand saving the tax cuts for anybody making under $250,000, I don't understand even signaling that there is room for compromising on anything more. That press conference yesterday made me feel a little sick.

[Johonny]

47. The current bill is the compromise keep for 95 % of Americans

raise the top. That's the compromise. If he goes back to square one renewing across the board, the Republicans will ask for even MORE cuts to the top 2 %. That's how they work. Obama's policies the last 2 years WERE THE * COMPROMISE. We have been compromising. We have acted in good faith! Seriously screw Republicans if they won't accept these were the compromise bills.

OK if he said say split the difference and raise the top rate by half what he wanted I still be ok with that. But that's a fantasy.

[treestar]

49. Ultimatum #55583998453454

Don't those include middle class tax cuts?

We'll lose big by letting the middle class pay higher taxes. It's worth it to leave the ones for the rich in to keep the middle class ones.

Done with what? The Republicans have the House.

[jgraz]

51. Uninformed post #34589348579384579

No, those tax cuts DO NOT include cuts for the middle class. Obama and the Democrats have ALREADY AGREED TO CONTINUE THOSE CUTS.

The cuts he's about to capitulate on are the cuts for the TOP TWO PERCENT. The cuts that will blow a multi-trillion-dollar hole in our deficit while doing nothing to stimulate the economy.

Seriously, treestar, this is basic stuff. Really. Basic. Stuff.

[GOTV]

53. Why don't they fix it during the lame duck session?

[jgraz]

54. Um, because they're cowards.

[GOTV]

56. It's difficult to come up with a better explanation.

[jgraz]

59. Well, you're gonna see a lot of people try over the net few weeks.

[Name removed]

62. Deleted message

Message removed by moderator. Click here to review the message board rules.

[jgraz]

85. Oh god you're serious. You honestly think the Repukes would vote down middle class tax cuts.

Maybe you should go back to telling us who did and didn't vote on Tuesday.

:rofl:

[laughingliberal]

87. Ain't that the truth! I'd almost like to see them do it. We'd have the House back in 2012. nt

[jgraz]

88. I think even Obama could handle the messaging on that one.

:crazy:

[Zhade]

80. The poster is smart enough to understand everything you just laid out. And probably does.

NT!

[Naturyl]

66. What stinking muddle class?

It's so tiresome hearing continuously about a fictional class that doesn't exist.

[Individualist]

55. Prepare to be done

He'll capitulate.

[jgraz]

57. I think your use of future tense is incorrect.

My guess is he already HAS capitulated, and he's sitting down with Orange Boner and Yurtle the Turtle to work on the spin.

[Individualist]

60. I stand corrected. Thank you.

:thumbsup:

[Naturyl]

63. Here it comes...

Here it comes... that's all. Here it comes.

[LawnLover]

65. It's funny how his failure to mention tax cuts for the rich

suddenly signals a willingness to compromise and cave in to the Republicans. He raised his hand once when he was speaking. Maybe he thinks he's Hitler, too.

Jesus fucking Christ.

[Zhade]

67. And we're surprised because...?

Next up, destroying Social Security as we know it.

[Jamastiene]

81. Don't forget Medicare too.

He'll "compromise" it all away if he doesn't stop soon.

[slipslidingaway]

83. + 1000 Medicare is where the big money is ....

and the reason Democrats should have advanced universal HC for all covered by taxes instead of leaving it out of the discussions.

[Jamastiene]

86. Absolutely.

If given half the chance, they are going to gut Medicare, SS, the HCR (the good parts of it, they'll leave the individual mandates alone), and any other program that helps people.

[slipslidingaway]

90. Each time someone mentions cutting SS we need to include possible...

cuts to Medicare IMO, also think the mandates are here to stay.

[orleans]

71. the older i get the more jaded i become

and politics is looking more and more like a game being played out in a good ole boy's club more and more--regardless of the players.

jaded.

[BlueCheese]

78. You'll never see a fatter pitch than this one...

There it is, just hanging right over the middle of the plate, begging to be launched over the fence.

There isn't an easier gimme in politics than this one. Give tax relief to everyone (including, by the way, the top earners), or send a trainload of cash directly to the fatcats?

The Democrats should be eager for this one. It's a godsend. For heaven's sake, please get it done right.

[AzNick]

79. When do they expire? This December?

They should still have them for 2010 return and then buh-bye?

It will be a battle of opinion if we want to win this.

[Name removed]

82. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Liberal Left]

84. I wish he would get the real lesson of the election

The people are tired of Obama catering to the Republicans.

[Name removed]

89. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Jack Sprat]

91. Darn straight.

His administration is over for me if he capitulates on the Bush tax cuts for the top 2. To me, this is the defining moment of his presidency. Blind allegiance is the flag of a fool.

[maxsolomon]

92. Obama should hit them back on the deficit

cutting taxes for the richest americans is irresponsible when the congress refuses to propose budget cuts acceptable to the executive branch and the senate. do the republiks beleive in a balanced budget or not?

he should let all bush tax cuts expire.