Democrats are furious at Obama for “caving” to the GOP on taxes by agreeing to extend, for two years, the Bush tax cuts for wealthy Americans.
They’re so upset they may torpedo a deal that would see a 13 month extension in unemployment insurance, a payroll tax cut, and tax cuts for the middle class.
Stop to think about how mindbogglingly absurd this stance is.
The Democrats, it would appear, would are willing to risk rising middle-class taxes during a recession — about as anti-stimulative as it gets — if it means the wealthy aren’t seeing taxes rise during this period. That’s how devoted they are to higher taxes.
Look, you can make an argument that taxes on the rich ought to be raised from a deficit standpoint. And you can argue that tax cuts for the rich have virtually no stimulative value. But it’s implausible to argue that the economy would be strengthened by higher taxes on the rich, unless you use the farcical deficit hawk logic that somehow it’s high deficits causing the economy to be weak, a line of logic we know that no Democrats accept.
Now granted, the GOP’s argument is flawed too, and sure they’re hypocritical for being so aggressive about tax cuts while campaigning on the deficit. But you can’t plausibly argue that the GOP is pushing for something that would derail the recovery immediately.
Hopefully that Democrats aren’t seriously so obsessed with higher taxes for the rich that they’re willing to have taxes rise for everyone. Hopefully this is just a matter of bruised egos.
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