Thom's blog - Wednesday December 8th, 2010
You need to know this. There’s a full revolt taking place within the Democratic party following President Obama’s tax cut deal with Republicans. House Democrats caucused last night to discuss the plan and count votes for it. Let’s just say it didn’t go too well and another meeting is scheduled for today. House Speaker Nancy Pelosi admitted last night that there was a lot of “unease” within her Party regarding a vote on the compromise deal. She needs to convince at least 39 Democrats to support it. And among Progressives – that won’t be easy. Congressman Anthony Weiner said the President “shouldn’t count on [it],” and Congresswoman Lynn Woolsey – co-chair of the Progressive Caucus – said the bill is simply not popular within her caucus. So if Pelosi can’t get progressives on board – she needs Blue Dogs. But they aren't enthusiastic either. Earl Pomeroy – a member of the Blue Dogs – has already come out in opposition to the bill. And others deficit hawks are likely to follow since the compromise adds nearly a trillion dollars to the national debt. The White House is sending Vice President Joe Biden to Congress today to rally support – though he is likely to face a hostile audience. If the Democrats blow this deal up – and taxes go up – it will then be up to the Republicans to solve the mess. And with the Americans people in large numbers supporting a tax increase for millionaires and billionaires – Republicans will be in a tough position not to listen. So could President Obama’s plan backfire – and in the end actually help him with his base? We’ll see – but I’m not holding out much hope.
Why not let the tax cuts expire and then pass a "tax rebate" bill via reconcilliation that gives back $500 to every taxpayer (billionaires included). This will counter the problem Obama speaks of that we can't let taxes go up during these tough economic times. The $500 offsets all middle-class American's tax increase with the added benefit of winning their support when they open their mail and say "Wow! Obama gave me $500!".