If they are going to capitulate on tax cuts at least do it the right way

[bluestateguy]

I favor keeping the taxcuts for people making under $200,000 (single)/$250,000 (couples) and going back to Clinton era rates for those making above. That's my position, and don't forget that.

All this talk of compromise is laughable. To me, the compromise was that we would not repeal the taxcuts in the stimulus last year; they would be allowed to expire and be in effect for one more year. So I view the current talk as capitulation, not compromise.

But having said that, there is a right way and a wrong way to capitulate. Make the taxcuts permanent for those making below $200/$250, and grant a two year exemption for those making above that. Then in the thick of an election year, Republicans (who will surely want those taxcuts extended again and again) will be left having to defend cutting taxes for the rich and only the rich. That would be a debate we would want to have. Is is bad fiscal policy? Yes, it is, and that's why my position is what I stated above. But so be it.

The worst thing they could do would be a two year waiver for all tax brackets because then we would be having this same losing debate two years from now, and middle class tax rates would be tied to tax cuts for the rich. Not good in an election year.

[MannyGoldstein]

1. No compromises: return to Eisenhower tax rates

91% on the wealthiest Americans, and far lower taxes than today on working Americans. And everyone prospered mightily.

[dkf]

3. And unlimited deductible contributions to retirement plans with deductions for all interest expenses

And scads of loopholes?

[dkf]

2. We need to go back to the Clinton rates soon.

Those are the rates that can produce a balanced budget. If we keep the cuts permanent the fiscal hole will also be permanent.

[tularetom]

4. All Obama had to do was own the middle class tax cuts

Like "the bush tax cuts are due to expire, we propose to improve upon them with the Obama tax cuts" and then propose and strongly advocate a system of tax rates that would substantially lower federal taxes for low and middle class Americans and make up the revenue by raising the rates for the highest brackets.

And then beat the drum for the proposal day after day after day. Loudly and repeatedly until the liberal media have to take notice of it just to complain about it.

We give up too fast on our side.