Because Bush didn’t have the 60 votes he needed to pass his massive 2001 tax cuts, he used the socialist/nazi/leninist budget reconciliation rules to jam them down the throats of screwball half-Americans. And that means that the tax cuts lasted for only ten years before the sunset provision set in. Bush cut rates for everyone, so if Congress does nothing, everyone’s taxes will go up. Obama campaigned on letting just the top two rates go up, while preserving the tax cuts of the middle class and working poor. To keep that promise, he needs Congress to pass a new tax bill this year. Some Democrats are getting nervous about hiking anyone’s taxes and want to punt the ball down the field. Yet, it appears that the White House and the congressional leadership are on message and intent on keeping Obama’s campaign promise. That doesn’t mean it will be an easy promise to keep. So, I have an idea. Why not cut the tax rate for 98% of Americans a modest amount and increase the tax on the top 2% modestly over what they were under Clinton?
They can make this a revenue-neutral move or one that actually adds additional revenue. That’s up to them. But rather than let the Republicans argue that a tax hike on the top two percent is a tax hike on everyone, put a bill on the floor that will actually cut almost everyone’s taxes and make the Republicans fight against it. As long as this move doesn’t harm the budget deficit, I see no problem with it. The middle class and working poor could use the stimulus, and there’s nothing wrong with closing the wealth gap a bit in the bargain.