The Big Question: What compromise should the administration offer on the Bush tax cuts?



Andy Roth, vice president of government affairs at the Club for Growth, said:

The White House can offer any compromise it likes, but GOP congressional leaders would be wise to not accept any compromise.  Republicans have all the leverage they need to get full and permanent extension of all the tax cuts.  If the Democrats balk, they will be viewed as obstructionists who are going to increase taxes not just on high-income earners, but on all taxpayers.

If all tax rates go up on January 1 because of the Democrats’ contempt for “rich” people, the new GOP-controlled House can submit a bill to the Senate for full and permanent extension of the tax cuts retroactive to the beginning of the year so no taxpayer ultimately plays for the Left’s class warfare tactics.  If the Senate refuses to pass the House bill, it will only worsen their image (and the White House’s image) in the eyes of the American public.

Bottom line: GOP leaders should demand NO COMPROMISE.  They hold all the cards.

 

Frank Askin, professor of law at Rutgers University, said:

No compromises. Repeal tax cuts for the wealthy - at least everyone over $500,000 for a couple. Hold the Republicans' feet to the fire.



Dean Baker, co-director of the Center for Economic and Policy Research, said:

He should give them the tax cuts in exchange for a huge stimulus and/or work share bill that put back to work the 15 million people whose jobs were destroyed by Wall Street greed.




Gretchen Hamel, Executive Director of Public Notice, said:

The Administration shouldn't be thinking about compromise -- it should be thinking about doing everything that it can do to help America dig out of the current economic crisis and put people back to work. Raising taxes has never encouraged job creation and raising them now would be economic suicide. The best way to encourage businesses to start investing and hiring again and to encourage people to consider starting businesses or making major purchases themselves is to let them keep more of their money.  The Administration should support not only extending existing tax rates, but also making them permanent so people can plan not just for next week but for years down the road.  Uncertainty has been crippling the economy and is a key barrier to business expansion and employment growth.  This shouldn't be a political game of chess; it's about the long-term health of our economy.  Congress and the White House should join to make the existing tax rates permanent.


Justin Raimondo, editorial director of Antiwar.com, said:

Excuse me, but a small businessperson who has more than $250,000 income per year is hardly a plutocrat. If the administration wants to create jobs, it must cut across-the-board tax cuts to everyone. In tandem with spending cuts -- including deep cuts in the military -- we can dig ourselves out of the government-created economic crisis. Too bad the egalitarian ideology of the administration and its supporters is standing in the way.