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.
Awesome strategery, Democrats. Extend tax cuts that do nothing to stimulate the economy and de facto cede the argument about tax cuts helping the economy, get blamed for the deficit costs of those tax cuts as more evidence of the free-spending liberals, continue the growth in income inequality and the distribution of wealth concentrated at the top of the tiers, leave less money available to engage in worthy projects, and demoralize your base while throwing a bone to people who are NEVER EVER EVER going to vote for you.
I hate being a Democrat.