Republican strategy on the tax cut extension...pin failure on Obama then reinstate in Jan.

[dkf]

"And Lori Montgomery reports that Republicans may hold out for their preferred outcome, let Obama take the hit for letting all the cuts expire, and try for a permanent across the board extension when GOPers take over in January."

http://voices.washingtonpost.com/plum-line/2010/11/the_morning_plum_126.html

[Dawgs]

1. They're taking control of Senate and Presidency as well?

Hmmm...

[dkf]

6. No they will pass their own version and that is it...

All or nothing. The question is if it gives then enough of an out with the public should all the cuts expire.

[daa]

16. Just the House and Senate

I mean we had 60 senators can could do nothing with 40 repugs so now with closer to 50 I am sure Nelson and buddies will vote GOP again.

[el_bryanto]

2. I have heard they will pass what Obama wants to pass

- making the rates on all the lower tax brackets permenant, and then get an extension on the upper brackets.

That said, I think this plan makes more sense; they are more interested in hurting Obama than they are in helping the American people.

Bryant

[Exilednight]

3. If that is the case then we will continue to stay in an economic stalemate. It's prove that trickle

down economics does not work. In the mean time, we will continue with huge spending deficits and no revenue to offset them, or we will spend a hell of a lot less and socioeconomic safety-nets will disappear.

[dkf]

4. I just hope Obama strategizes this well

[JDPriestly]

5. Middle class people and the poor will not notice the end of the tax

cuts nearly as much as the very wealthy. I would say, let the tax cuts go. If the Republicans won't deal, why should Obama?

What is more important? Balancing the budget or giving tax cuts? Shouldn't the Republicans be reminded about the pay-go policy. Tax cuts are expenditures. Most people will understand that if you present it that way. The government loses money when people get tax cuts.

And if the Bush tax cuts had really stimulated the economy in a healthy way, we would not have had the recession and crash.

Really, folks, you must see the movie, Inside Job. It displays a graph showing who gained not only from the housing boom, but the tax cuts. Yes, we all know about that on DU, but if the movie, Inside Job, becomes very popular, a lot more peoples' eyes will be opened. Please go to the movie.

And in case you are wondering, I have no ties with the folks who made the movie. I just think it is very good.

[dkf]

7. They will be paying $500 more in taxes for each child, will have the marriage penalty reinstated

And will lose the 10% tax bracket which will move to 15%

[JDPriestly]

10. $500 per year is a total of $41 per month -- not much really.

Not these days when, in L.A. a parking ticket costs $40 per month in some cases. $41 per month will pay the cable bill for minimum service and leave you maybe $12.00 for groceries. It's not much money for a family of four.

The big tax hike for many families is the loss of their deductible for the interest on the mortgage on their foreclosed home. That's the big one out there.

[dkf]

11. Actually I'd bet these families tend to see a nice refund which they use as savings.

So their refund of $2000-$3000 may disappear.

[JDPriestly]

17. How much income do you have to have to get a refund of $2000 -

$3000 per year. Many families that used to have two incomes now only have one. Hours have been cut, etc. You are figuring those refunds based on incomes of several years ago. And the jobless don't pay taxes or get refunds.

I say, if the Republicans don't want to reduce or eliminate the tax cuts on high incomes, then all of the tax cuts should be eliminated.

The Democrats in the lame duck Congress will probably extend the tax cuts for the lower income Americans and let those for the higher income brackets run out. The Republicans can come in and negotiate with Democrats for tax cuts for the highest income brackets only if they wish. That would be the smartest approach. Let the Republicans show which side they are on. Make them face the embarrassment.

[dkf]

19. It's a tax credit so you get a $500 per kid if you pay taxes or not.

[karynnj]

15. I respectfully disagree

People who are lower middle class who have not had to pay taxes will notice the tax increase very much. Many are budgeting money very carefully with little left after expenses. Those comparatively few dollars will be felt in having to cut something somewhere.

Though the wealthy will have far bigger amounts that they now have to pay - they likely will have very little impact on anything in their lives. So, yes the wealthy will likely be able to cite to the penny the amount extra they have to pay, they will not cancel one contract for a vacation home, cruise, or yacht. Nor will they cut a thriving business - as the republicans have suggested.

[Marr]

8. If the tax cuts for the rich are extended, it's because Obama *wanted* to extend them all along.

The only sensible thing to do right now is to let all of the cuts expire, and promote the Obama Tax Cuts as a separate bill. Exclude the wealthy from the Obama Tax Cuts, and let the Republicans block them because their super-wealthy pals didn't get more. He could bludgeon them with the issue.

You'd have to be politically blind not to see this. For one thing, there's no reason to allow the name "Bush" to be attached to one your own hard-fought battles. This is just simple marketing. For another, Republicans are never, ever, going to compromise. They've said as much.

[kentuck]

12. I agree but...

all tax bills must originate in the House, I believe. And the House is now Republican. But there is a way.

The Democrats have a very narrow window. They could let them expire at midnight on December 31st and take up a new bill on January 1st, a holiday, to pass a new bill, a Democrat Tax Bill for the middle class. After all, the new Congress does not come in until the 3rd, right? :-)

[Marr]

18. They could do it anytime-- this is politics.

The Republicans have proven over and over that procedure is pretty meaningless- just make your case to the public and argue from there. 'Here's our plan, here's their plan'. It's still blocking a middle clas tax cut, whether they're holding it up in the House, the Senate, or vetoing from the White House.

[Cosmocat]

13. It is just mystifying ...

how the dems did not grab ahold of this issue two months before the election, draw the line in the sand, battle it HARD and let the chips fall where they fall ...

RARELY do the good guys in this game rigged to no end for the Rs, have an issue that is both so right AND so strong politically ...

[Wounded Bear]

14. This ^

We're long past time to "draw lines in the sand." But eventually, we will have to.

The Bush tax cuts have been in place since 2001/3. We have had the worst job creation decade since they started keeping track. Their threats that tax increases will stunt job creation sound pretty hollow to me.

I'm willing to pay a little more to bring down deficits-assuming I can find a fucking job in this Bush recession. I'm certainly willing for those better off than me to do so, too. :shrug:

[Enrique]

9. letting them expire doesn't have to be "a hit"

it's the right policy, it's the policy that was unanimous among Democrats when Bush was president. Every senate democrat voted to kill those tax cuts, and they didn't "take a hit" for it. In fact they gained seats in Congress.

Kill the tax cuts, Obama. Be a Democrat. :kick: