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Tax Cuts and Compromises

"You guys won't shut up, and this poor man wants to dance! We're in here for music. Play it!"
"I didn't come here to listen to f*****' CNN!"
         comments from listeners at Consolidated concerts (a band known for extended political and social commentary between songs)

Those two remarks sum up how I feel about our political situation right now. The effort to stymie Obama's agenda has not been successful. Plain, blunt force resistance did not lead to Obama's defeat. Now there is talk of ongoing Republican resistance to any tax increase. That's simply suicidal.

As of January 1 all Bush tax cuts expire. If there is no political deal then everyone's taxes go up. No one wants this. Both sides are betting the other will blink first, thus losing face. But this is a proud, macho, foolish position. Admittedly this is an age where compromise is interpreted, and presented by the media as, weakness. In order to avoid such a protrayal each side must stoutly cling to its 'principles'. Without such power considerations reasonable people of both aprties are able to readily agree on a package of tax increases and entitlement reforms.

Regardless of how compromise is painted in the media, however, ongoing blunt resistance by the GOP is suicidal. If they resist, everyone's taxes go up, and the GOP will be blamed. If they are forced to back down after violent resistance they will indeed look weak. If they go to the negotiating table looking for a deal then there is the opportunity to claim credit for preventing the taxes of most Americans from rising. There is also the credit to be gained from recognizing the new post election conditions and responding to them. To fail to do so runs the significant risk of being blamed for a broad tax increase, blamed for the resultant economic slowdown, and being rightly perceived as a party of nihilistic obstructionists. The GOP has to deal and, given that Obama won the election, he is quite rightly going to expect the GOP to give first.

A realizable compromise might include a tax hike on those earning over 250K combined with an alteration of Medicare and/or Medicaid. If the middle east wars are ended as promised there will be a savings of 300 billion yearly. The tax increase brings as much as 100 billion yearly, netting 400 billion yearly. That elaves a deficit of 'only' 700 billion. Here is an opening for Republicans to show governmental moderation and fiscal advantage, as the President, having received his tax increase, is left with 700 billion to get rid of. That's a lot of entitlements to trim. The Republicans could trumpet a willingness to compromise principle in the name of deficit reduction, and blast a White House that would not do the same.

A last thought. I, and many, have had strong things to say in support of our own values. Unfortunately that has spilled over into insulting and even violent remarks about our opponents, something this blog has tried not to do. Such remarks do not further conversation at all; they hinder it. Like Elizabeth, I have to my knowledge lost a friend over this election. We are all Americans. If our representatives can not work together then perhaps they can learn from their constituencies and we can show them how people of different values live and work together every day.

Ted

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