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Title: Republicans now blaming Democrats for Bush tax cuts
Source:
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URL Source: http://voices.washingtonpost.com/ez ... licans_blame_democrats_fo.html
Published: Jul 20, 2010
Author: Ezra Klein
Post Date: 2010-07-20 11:44:42 by Skip Intro
Keywords: None
Views: 1415
Comments: 2
Republicans now blaming Democrats for Bush tax cuts The new Republican line is that there's a “Democrat tax hike" on the way. And it's a big 'un: "An unprecedented $3.8 trillion increase" that will affect -- and this is their bold and underline, not mine -- "every American who pays income taxes!" To understand what's going on here, you need to go back 10 years to the passage of the Bush tax cuts. In order to maximize the size of the cuts, Republicans had to minimize the influence of minority Democrats on the package. So they chose to run the bill through the reconciliation process. But that posed some challenges. Budget reconciliation had never been used to increase the deficit. In fact, it specifically existed to decrease the deficit. That's why one of its rules was that you couldn't use it to increase the deficit outside the budget window. Republicans realized they could take that very literally: The budget window was 10 years. So if the tax cuts expired after 10 years, they wouldn't increase the deficit outside the budget window. They'd also have the added benefit of appearing less costly in the Congressional Budget Office's estimates, as the CBO duly scored them as expiring after 10 years, which kept the long-range budget picture from exploding. But the plan was never to have the tax cuts expire. Instead, the idea was that people would get used to the new tax rates, and no future Congress would want to allow a big tax increase, so when the time came, either Republicans in office would extend the cuts or Republicans in the minority would hammer Democrats until they extended them. And that's where we are now: Democrats control the government, so Republicans are screaming about tax increases as a way to get Democrats to extend tax cuts. It's really hard to know where to start with this one. It's not a tax increase passed into law by Democrats. It's a reversion to old tax rates passed into law by Republicans. It's not how law is supposed to work. It's the result of twisting a budget process meant to reduce the deficit so you could use it to massively increase the deficit. And as for the policy itself, it's a fiscal nightmare: No one who professes concern for short-term deficits can argue for the extension of these deficit-financed tax cuts and retain credibility on debt issues. This is a litmus test. It's not Democrats who are trying to pass the largest tax hike of all time, but Republicans who are calling for the largest increase in the deficit in memory.
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#1. To: Skip Intro (#0)
That's too much information for the average voter to process.
Its going to hurt the economy come January 1st if the Democrats allow the tax cuts to 'lapse'. And it will be the largest single increase in taxes we've seen. This couldn't happen at a worse time for the economy, and the population. The irony is the havoc allowing the 'Bush' tax cuts expire will guarantee Owe- bama is a one term President, due to the inevitable jump in unemployment - which is already unacceptable to the American People. If this does in fact take place, the only real question is how much damage Owe- bama and company will do to the economy and the nation as a whole before we can fire them ala Carter, in 2012.
Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit.
not a tax increase passed into law by Democrats. It's a reversion to old tax rates passed into law by Republicans.
#2. To: Skip Intro (#0)
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