Orszag: Extend The Bush Tax Cuts

[one...two...tree 2,762]

Brian Beutler

In his new role as New York Times columnist, Peter Orszag proved won't just be a soldier for the Obama administration. In his first piece, the President's just-departed budget director created a big headache for his former boss by calling for a two-year extension of all the Bush tax cuts -- including the ones for the wealthy.

The White House and Democratic leaders on the Hill want to let the tax cuts benefiting the wealthiest expire, but are facing opposition from some of their own members, who will now have Orszag to cite as justification for holding out.

"[T]he best approach is a compromise: extend the tax cuts for two years and then end them altogether," he wrote. "Ideally only the middle-class tax cuts would be continued for now. Getting a deal in Congress, though, may require keeping the high-income tax cuts, too. And that would still be worth it."

Orszag also recommends implementing a Value Added Tax down the line to help erase deficits in the future, but says the votes simply aren't there. You can read the entire column here.

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"[T]he best approach is a compromise: extend the tax cuts for two years and then end them altogether," he wrote.

I can live with that. The Blue Dogs aren't going to play ball on letting the tax cuts for the wealthy expire. And like it or not, the Blue Dog caucus is bigger than the Progressive caucus. It is what it is.

[one...two...tree 2,762]

I can live with that. The Blue Dogs aren't going to play ball on letting the tax cuts for the wealthy expire. And like it or not, the Blue Dog caucus is bigger than the Progressive caucus. It is what it is.

I thought there was a sunset clause on the initial Bush Tax Cuts, meaning they don't need to vote to let them expire, but rather they would need enough votes to keep the cuts. I'm confused.

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I thought there was a sunset clause on the initial Bush Tax Cuts, meaning they don't need to vote to let them expire, but rather they would need enough votes to keep the cuts. I'm confused.

Yes. If Congress does nothing, they expire. But the Democrats in Congress can't "do nothing" because "do nothing" will get spun in the media as a tax increase on the middle class. So they have to do something and the moment they try to do something, they will pretty much have to extend the cuts as is.

[one...two...tree 2,762]

Yes. If Congress does nothing, they expire. But the Democrats in Congress can't "do nothing" because "do nothing" will get spun in the media as a tax increase on the middle class. So they have to do something and the moment they try to do something, they will pretty much have to extend the cuts as is.

So if the Democrats at least try and are then faced with further obstruction then the cuts expire. They can always push forward later legislation that would target lower taxes on the Middle Class. And lets be honest here. Bush's tax cuts put more of the tax burden on the Middle Class, so letting the whole tax cut scheme expire is not the doomsday scenario that some are trying to say it is.

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So if the Democrats at least try and are then faced with further obstruction then the cuts expire. They can always push forward later legislation that would target lower taxes on the Middle Class. And lets be honest here. Bush's tax cuts put more of the tax burden on the Middle Class, so letting the whole tax cut scheme expire is not the doomsday scenario that some are trying to say it is.

I disagree. The non-rich in America have a much lesser ability today to absorb an increase in their tax withholding than they did a few years ago.

[Gary and Alla 3,694]

The economy does better when the government reduces the amount it confiscates. Amazing. Who thought of that?

Obama is so desparate to keep control of both houses he is willing to act like a Republican for a few weeks. What a joke.

[mawilson 2,133]

I can live with that. The Blue Dogs aren't going to play ball on letting the tax cuts for the wealthy expire. And like it or not, the Blue Dog caucus is bigger than the Progressive caucus. It is what it is.

So can I. Expire all of them or none.