Among Democrats, economic pressures are changing tax-cut dynamics

[boston bean]

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.

http://www.washingtonpost.com/wp-dyn/content/article/2010/08/26/AR2010082605951.html

And on a side note, I did not know that John McCains Financial Advisor, Mark Zandi, on his campaign was Nancy Pelosi's advisor or that he played an important role in designing Obama's stimulus plan.

I hope the plans to let them expire come to fruition. I hope the Blue Dogs don't get to wag the dog on this issue.

[Hannah Bell]

1. 140,000 taxpayers, the top 0.1% of filers, take home 12% of all income. fuck'm & raise their taxes.

that's 3 times more than the bottom 20% takes home.

[Newsjock]

2. They can't possibly be this badly out of touch with actual real America

Then again, I guess they can. Fuck 'em all.

[Arctic Dave]

3. End the feeding frenzy at the pig trough, period.

Why the fuck can't people get their head around this?

[WCGreen]

5. Because every person on TV, every talking head that isn't

a commentator on late night MSNBC, is in that or approaching that highest tax bracket and they have a personal stake in seeing the tax cuts extended...

[tritsofme]

4. I find this idea sort of interesting.

If the middle class tax cuts are made permanent, and the tax cuts for the rich are only extended for a year, then when the issue comes up again next year, the debate will only be about adding to the deficit to pay for tax cuts to the rich, they will no longer be able to conflate the issue.

By dealing with the expiration as the GOP intended in 2001 and 2003, we are playing on their terms. By permanently divorcing the issue from the middle class tax cuts, Democrats will have a much stronger hand and message when the issue comes up again next year.

I wouldn't be surprised if the GOP starts to come out against any plan that doesn't permanently extend the tax cuts for the rich, because they know dealing with the tax cuts for the rich as a solo issue will be a big loser for them next year.

[WCGreen]

6. Good Point...

[DJ13]

7. Tax the top brackets, and if they're worried about the economy

....redirect that revenue into direct stimulus for the bottom incomes where it will be spent.

The wealthy wont stimulate, they'll jast further pad their bank or investment accounts.

[TheKentuckian]

8. Predictable idiots. Of course when that jacks the deficit then they'll freak too

and be looking for more cuts.

Sounds familiar, there is a party that executes just such policies every chance they get...hmm

[provis99]

9. what an obscenely horrible article.

This writer should be fired in disgrace. His "proof" that "senior democrats" favor the Bush tax cuts, is the policy preference of one political hack/advisor who advised John McCain in 2008? Lori Montgomery, you are either a Republican operative pushing Fox News style lies, or an absolutely horrid excuse for a journalist. The Washington Post has been a terrible disgrace since Katherine Graham died, and absolutely shit writers like Montgomery are a large slice of the reason.

Resign in disgrace, Montgomery, you useless fuck.

[jtuck004]

10. The party that cuts social security and protects tax cuts for the wealthy,,,

I gotta go check my Google Maps. Was there a right-turn there I missed?

[w4rma]

11. I have no problem hanging the DLCers out to dry. *Especially* if they are pulling this guilt trip.nt

[bvar22]

12. In the 60s,

*you could attend the State University and graduate debt free if you were willing to work a part time job.

*A family with one parent working could afford GOOD Health Care for the entire family.

*A blue collar worker could BUY a good home and pay it off in 20 years.

*A blue collar worker could afford a REAL vacation every year.

*A blue collar worker could buy a NEW car every few years.

*A blue collar worker could save enough to retire in dignity.

In the 60s, the top bracket tax rate was around 70%,
the economy BOOMED,
JOBS expanded,
and many people STILL got RICH.

The Working Class could have ALL those things again IF we had a Political Party that represented US.
WE outnumber THEM.


"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans.
I want us to compete for that great mass of voters that want a party that will stand up for working Americans, family farmers, and people who haven't felt the benefits of the economic upturn."---Paul Wellstone

[Yupster]

17. Any idea why college costs have gone up

so much faster than the rate of inflation over the last 20 years or so?

[Yupster]

18. Any idea why college costs have gone up

so much faster than the rate of inflation over the last 20 years or so?

[BlueDemKev]

13. Are Americans Brain-Dead?

Are Americans so brain-dead that they now believe that extending Bush's tax cuts for the wealthy will help jolt the economy? What a joke. This economy was destroyed by the policies of Bush & the GOP Congress implemented during the first half of the 00's (decade), the people got mad and turned against the GOP with a vengeance in 2006 and again in 2008. SO NOW THEY WANT TO GIVE THE REPUBLICANS THE KEYS BACK JUST TWO YEARS LATER?

Who in their right mind actually believes that the top 6% of Americans will stop investing if their tax rates go back up 3 percentage points (33% to 36%)? Can anyone imagine a rich, wealthy person saying the following....

"Oh no, instead of pocketing $1M on the XYZ development, now I can only keep $900K? That's it, I'm putting my money back in my pocket and I won't invest anything! Of course, I'll make NOTHING now, but it's more important that I show those mean liberals in government that they can't push me around!" :nopity: :nopity: :nopity:


Americans--despite all their brilliance--are the most immature, short-sighted people in the Western Hemisphere. :eyes:

[unblock]

14. the let the ridiculous tax cuts for the already rich expire and HELP THE POOR PEOPLE OUT MORE!

ARRGH! how can they not get this? how can they think that $600 billion dollars for people who don't need it and aren't doing enough with the money they already have is better than giving $600 billion dollars to people who are DESPERATE for help and will immmediately inject that money straight into the economy -- which, by the way, means that it will most certainly find its way to the rich people anyway, though only after helping a lot of people and businesses in the process.

rhetorical question, of course; helping rich people is more cost-effective from a political contributions point of view, and that's all that really matters in washington....

[Hugabear]

15. Um, how exactly have the tax-cuts for the wealthy worked out so far?

If lower taxes for the wealthy hasn't worked so far, what makes anyone think that they'll suddenly start creating jobs?

[JDPriestly]

16. If this is true, there is no hope for America.

Where do they think they are going to get the money to support the wars in Afghanistan and Iraq? Middle class people just do not have any money. The poor never have had any money.

Where other than from the rich will they get the tax revenue they need?