"The Democrats have picked the wrong strategy on the Bush tax cuts"

[Clio the Leo]

Ok NOW I'm worried.

The Democrats have picked the wrong strategy on the Bush tax cuts
By Ezra Klein

The Democrats are converging around a strategy on the Bush tax cuts that, if it works, would potentially eliminate the tax cuts for the rich. The votes in the Senate are such that legislators on both sides say the strategy won't work, but leave that aside for a second. The "win" here -- eliminating the tax cuts for the rich -- is the wrong one.

The tax cuts for the rich are bad for the deficit, but that's about it. And if they're only extended for a few years, they're not that bad for the deficit, and they do have some (minor) stimulative impact.

Comparatively, unemployment insurance is going to expire for 2 million Americans in a matter of weeks. That will kick out whatever meager financial security they've been able to cobble together, not to mention depriving the economy of some of the most stimulative spending we've got going. Unemployment insurance can't be allowed to expire, and the extension should be for longer than a few months. It should be until unemployment comes down to 7 or 6 percent.

In February, Congress will have to vote to lift the debt ceiling. Eventually, it will do this. It always does, because if it doesn't, it creates a fiscal crisis. But Republicans, despite wanting to increase the debt by extending the Bush tax cuts, don't want to vote to raise the debt ceiling. They're already planning to hold the vote hostage until they get substantial concessions on health-care repeal and spending cuts. And Democrats, at that point, will have little choice but to accede to their demands. The politics of the debt ceiling are tough, and since Democrats both lost the last election and control most of the government, they'll get blamed.

Getting rid of the tax cuts for the rich is not as important as extending unemployment benefits or protecting the Affordable Care Act. Right now, Democrats have settled on a strategy that focuses on those tax cuts and leaves unemployment insurance and the debt ceiling alone. That's a bad strategy. If we're extending economic relief, we should be extending it to for the jobless. Giving someone making $195,000 a year a tax cut but cutting off the unemployment benefits for an unemployed machinist in Ohio is cruel and counterproductive. And if both parties want to add trillions to the deficit by extending these tax cuts, then both parties need to raise the debt ceiling at the same time.

The right outcome here is not the end of the tax cuts for the rich, though that might be nice. It's an extension of unemployment insurance and an increase in the debt ceiling. Democrats shouldn't vote with Republicans to extend the tax cuts -- which is, of course, the only way the tax cuts can be extended -- unless Republicans will simultaneously vote with them to extend UI and lift the debt ceiling.

http://voices.washingtonpost.com/ezra-klein/2010/11/the_democrats_have_picked_the.html

[FrenchieCat]

1. Most folks don't want that kind of "deal-making" here at DU.....

Democrats shouldn't vote with Republicans to extend the tax cuts -- which is, of course, the only way the tax cuts can be extended -- unless Republicans will simultaneously vote with them to extend UI and lift the debt ceiling.

My thought is that one and the other have nothing to do with the 3rd.

The Media and the Republicans are in charge these days....
so they are the ones at fault for closing down the government and
cutting off unemployment. Why still blame Democrats, Ezra? :shrug:

[ProSense]

2. That's one crazy argument

What exactly does unemployment insurance have to do with the tax cuts? Ezra seems to be arguing that Democrats need secure the votes for unemployment by allowing tax cuts for the rich, which is nuts!

Basically, he's offering up umeployment, in addition to the middle-class tax cuts, as a hostage.

[Clio the Leo]

14. he's looking at it from the perspective of short term economic stimulus...

... and the overall concept that we're effectively placing making a tax cut for someone who makes $195,000 a year over unemployment benefits for someone who makes ...nothing.

Comparatively, unemployment insurance is going to expire for 2 million Americans in a matter of weeks. That will kick out whatever meager financial security they've been able to cobble together, not to mention depriving the economy of some of the most stimulative spending we've got going. ... Getting rid of the tax cuts for the rich is not as important as extending unemployment benefits or protecting the Affordable Care Act. Right now, Democrats have settled on a strategy that focuses on those tax cuts and leaves unemployment insurance and the debt ceiling alone. That's a bad strategy. If we're extending economic relief, we should be extending it to for the jobless. Giving someone making $195,000 a year a tax cut but cutting off the unemployment benefits for an unemployed machinist in Ohio is cruel and counterproductive.

[Mass]

3. I think they may go there, but in order to get it, they chose the CORRECT strategy.

Klein still does not understand that, if you want to negotiate, you should not cave BEFORE the negotiations, not showing you are weak on the issue and concede without getting something in exchange.

If anything, their strong talks give me confidence.

BTW, the GOP will vote for unemployment benefits. They know it is not a winnable position because they have unemployed people in their states and unemployed people and their families vote. So, enough GOPers will vote for it.

[ProSense]

5. They don't have to go there

Unemployment failed in the House on a procedural technicality. It got 258 votes.

It makes no sense for the Senate to link unemployment to tax cuts for the rich to get a couple of votes.

That completely defeats the point. Also, what happened to Republicans having to show how they will be paid for?

[Mass]

6. I agree. I would prefer they dont go there. I was just pointing to the fact that,

even if they go there, I think saying not extending the tax cuts is important is the right strategy. I am not sure what Ezra Klein wants them to do. Give up on tax cuts for the rich and then hope the GOP plays nice?

[Clio the Leo]

16. You think so?

.... hasn't the GOP done their part to kill every benefit extension thus far?

[Mass]

17. and eventually it passed. This latest bill got more than 50 % of votes

The problem is that it required 67 % of votes as an emergency measure.

BTW, Ezra Klein is suggesting that we make unemployment benefit hostage of tax cuts for wealthy. What makes him (and you) think it could work? and, in this area where there is a crazy emphasis on deficit spending (more important than anything else, it seems), all it would do is increase the deficit which would then lead to cut essential services.

[mtnsnake]

4. What a feeble ploy by Republicans to connect UI, or anything else, with killing tax cuts.

God they're pathetic.

[jeanpalmer]

7. If we had a President

who wasn't afraid of his own shadow, he would be able to make the obvious arguments. Instead, he is cowering somewhere, fasioning a compromise.

[ProSense]

8. "who wasn't afraid of his own shadow"

"Instead, he is cowering somewhere, fasioning a compromise."

The President is currently in Lisbon negotiating with NATO allies.

[jeanpalmer]

9. No he's over there

changing the Afghanistan withdrawal date. Which he lied to us about.

[ProSense]

10. No

he's not

[Name removed]

12. Deleted message

Sub-thread removed by moderator. Click here to review the message board rules.

[DFLforever]

11. Don't confuse her with factual information

[jefferson_dem]

19. Please don't let such hate and cynicism consume you.

It's not healthy.

[blue neen]

13. I'm not buying it. Sorry, Ezra.

:dem:

[kentuck]

15. Wrong strategy??

What strategy? Pray tell.

[DebJ]

18. Baloney. n/t