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EDITOR OF REDSTATE

Killing the Tax Compromise

By: Erick Erickson (Diary)  |  December 13th, 2010 at 04:47 AM  | 

RESIZE: AAA

I think the GOP needs to kill the tax compromise.

This is not a hill to die on. It is certainly a gamble. Those who support the deal argue that it is too great a gamble to assume we could get a better deal next year when the number of Republicans in Congress increase and the GOP takes over the House.

I’ve made it easy for you. You can go here to call your Senator and tell him to vote against the tax compromise.

They say that the deal is reasonable and we can hope for no better on the estate tax increase. But that argument defies all sorts of rhetoric.

Supporters of the tax deal say that increasing the estate tax from zero to 35% is actually a tax cut because otherwise the estate tax will go up to 55%. But at the same time they are arguing that keeping income tax rates frozen is somehow a tax cut because otherwise those rates will go up next year.

There is a general inconsistency there.

In effect, what we are arguing about is keeping the income tax rate the same in 2011 that it is right now.

Let’s be clear, Congress can retroactively fix this if the deal fails.

it is not a hill to die on. There is lots of uncertainty. But I am willing to take the gamble that any deal we get next year will be far better than any deal we get this year, when such a deal depends on making it palatable to Nancy Pelosi.

Call your Senator now and tell him to vote against the tax compromise.

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COMMENTS

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  • ssugasl231

    If tax cuts lapse, voters will blame “tax and spend Democrats” since they have been the most vocal (Sanders et al.)

    If we pass the tax cuts, we effectively snap the Dems in 2 and get a pretty good (though not great) tax deal). One that we can re-negotiate in 2 years.

    http://www.libradex.com/viewArticle.aspx?id=120

  • billinsuwanee

    If I have to call Senators Shameless and Is-aaaack-son to vote NO on this TAX deal, we’ve got bigger problems than this tax deal.

  • spinoneone

    First, the Dems get blamed for everyone’s taxes going up. If they are cut back to 2010 levels in 2011, the Republicans get the credit. Also, this tax bill is full of pork! And, it extends subsidies for ethanol and leaves the ethanol tariff in place against imports. If we don’t pass the tax bill those subsidies and tariffs lapse…I can hear the Greens screaming now! Don’t you love that sound??!!! Iowa farmers will survive nicely, thank you. I really don’t give a damn about Archer/Daniels/Midland. It really is more “carbon friendly” to use Brazilian sugar cane to make our ethanol rather than Iowa corn. The “energy independence” theme is a scam in this case.

  • avgjo

    There are some really good arguments for and against killing this bill. For me, the most compelling one in favor of the bill is that we have to avert any further economic damage. That said, we cannot continue to tolerate ethanol, which makes a tough economy even tougher for folks who have to eat (i.e., all of us); ‘getting this done’ (words I am sick of hearing) will free up the RINOs to vote for whatever trash Reid et al. have left for the lame duck; and I’m sorry, but I’ve come to learn that if Obama and Reid are pushing something, it can’t be anything good for America. I’m wondering if they’ll have to pass this bill for us to find out what’s in it, the current M.O. of the democrats.

    BTW, I say the GOP missed golden opportunity because they could have pushed for actual tax cuts, improved energy policy, all kinds of things. The dems up in 2012 are apparently ready to talk turkey and we could have gotten more out of this, I believe.

  • cam1

    we do have more problems than the tax deal. That’s why all Georgians need to call Johnny and Saxby. We’ve got to let them know we are here.

  • bus2dc

    I completely agree. The GOP effectively did nothing with this but give the “appearance” of striking a compromise. There should be NO death tax (key issue for new Congress?) but if anything it should be minimal as possible in this economy… and the 2-yr extend on top % is a candy-high and provides no sustenance whatsoever for a company to have confidence in hiring again when they KNOW this bill will be a huge soccer ball for the 2012 election games. Don’t even get me started on the “sweeteners” and earmarks. NASCAR? Movie producers? Didn’t we just kill two years of our lives fighting to STOP THIS?? I don’t care if those “Christmas balls” they’re hanging have been in the family for years, they need to GO. We need a new, unadorned, unlit tree in the House — -or none at all until the new residents come in. And what’s the point of anything if you don’t cut the unemployment benefits back to either nothing or 6 months?

    This won’t improve the economy and then the Dems will blame US and say “I told you so”. KILL this thing! McConnell, we do not like what we’re seeing at all – already.

  • popster

    I guess they didn’t get the message. Too much pork, even on the right. When will someone listen?

  • atillathehun

    This isn’t a compromise and even if it were it’s a lousy deal.
    Buying into class warfare is a loser and the effort always needs to be that we are Americans who reject that premeise. The GOP continues to allow Marxist’s to frame the message of the evil rich without any effective rebuttal.
    A better deal is just around the corner.

  • gumbeaux

    This bill is just another ‘Stimulus Bill’. It is packed full of spending that has nothing to do with extending the tax cuts or unemployment insurance. It is more tax and spend from the ‘lame ducks’ in the House and Senate. It will be rammed through and no one will read it. It is ALL SMOKE AND MIRRORS!

  • GreyCloak

    I hate taxes. Even worse is that the “tax continuation” bill is larded with at least $80 billion in pork, to include ethanol subsidies for which several Republicans voted (legitimately, on behalf of their constituents).

    The oddest thing that many on RedState fail to understand is that the last election doesn’t take effect until next year! The Dems still own the House, the Senate, and the Presidency. And for those Constitutional advocates: THE HOUSE is charged with “… raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.” So, even next year, the Dem-majority Senate has a say.

    I am very, very sorry that We, The People have supported decades of hand-outs from the Federal Government. President Bush II tried to limit Congressional spending by reducing taxes (and the money available to spend) in a time of “surplus.” But even (especially) a Republican Congress found ways to increase “earmarks” to 14,000!

    “Either way GOP wins”

    Why THE HECK does somebody think this is a PARTY game??? When did you lose your conscience for the American People?

    “Lets get more”

    WHAT? From your neighbors? Or from partisan poker?

    “The GOP missed a golden opportunity with this one. ”

    Oh, Yeah … maybe party politicians could have gotten a few more $millions or $billions from some imaginary Government fund … or more concessions from Democrats who are already screaming “we can’t support our President!”

    WE AMERICANS let our governments (both Republican and Democrat) spend FAR MORE than we ever paid.

    The bill has come due. I am grateful that this compromise extends tax breaks that were passed in more plentiful times. I really wish that Congress would STOP SPENDING! I cannot ask for more from lame ducks. Or the next ducks.

    Partisans: own up. If you’ve written a 7-or-more digit check for estate taxes, you can complain. If you got a “bonus” for the last few decades when you reached the Social Security limit, complain all over. If you are unwilling to pay for all the things for which your Congress has voted, make a loud noise.

    Note: the inheritance tax dropped to Zero this year only … and reverted to Capital Gains Tax on whatever (all) proceeds.

  • republicanconscience

    I want the tax cuts to be permanent but having so many of the dirt bags that got us to this point bloody themselves is a joy to watch.

  • NHConservative0227

    If we don’t pass this tax deal. This is American and we can wait until January for some actual conservatives to push through permanent tax cuts across the board without all the stimulus pork and increased unemployment spending.

    In fact, if we let this current deal pass, we will actually be worse off in the long run. How can businesses hire and make investments when there is so much uncertainty just two years from now?

    How can we add at least $200 B to the deficit when we already have $108 T in unfunded liabilities?

    Why do we have to to settle for stimulus pork projects such as more ethanol subsidies, bailouts for run manufacturers, auto race track owners, and hollywood film producers.

    The Great One Mark Levin is right, this is a bad deal. Kill it and start over in January!

  • scottb

    Kill the bill. let the new congress deal with it. Maybe it won’t be laden with prok. (I say maybe)

  • dudette

    –I called Cantor and Boehner the minute I heard about it and the staff argued with me for a good while—then I hear Kudlow take Krauthamer’s article apart and refute it—Rush is against it, Grover Norquist for it—I can barely make any decision I am thoroughly confused.

  • GreyCloak

    Actually, when he dropped many deductions, he claimed that he was only going to “tax the rich.” I applauded. Until I found out that, at $35,000 a year, I was rich!

    You can see any politician on Sunday morning waffle as to who is actually “the rich.” From decades of experience, I can assure you: “If you have a job, you are rich!”

    Politicians, with some remaining sanity, do not call “the rich” evil … they prefer the term “contributor.” Broadcasters, on the other hand, are happy to demean “the rich” … and not mention their own salaries.

    This year, in which of the two houses of Congress and the Executive do you expect a better deal? (Considering they are all in the opposition majority). Next year, ONE House changes hands. In which corner do you look for a “better deal?”

  • ihateliberals

    of a Tax compromise. The very fact that the Republican leadership came uop with this shame is still a big problem. We should not be talking compromise at all. The Republicans did not need to do one single thning but make the Democrats either renew the existing tax rates or let the Bush rates expire. This would have been a winning move for the Republicans. The Republicans are not in power and this should have been entirely a burden for the Liberals to bare. As soon as Boehner (The RINO) said compromise we lost. We are now in a lose lose situation. If it passes then some of the rates go up. If it fails the blame will be put on the Republicans regardless of why it failed. The Tea Party message still has not reached the leadership of the Repy=ublican Party yet.

  • ihateliberals

    why did Boehner bring this up in the lame duck session to start with. This was a very bad idea that puts the Republicans in a losoing position. either way this goes the Republicans lose. This is a Lame Duck session. Let them flounder around and we just need to wait it out until January power shift.

  • GreyCloak

    Imagine you are a President or CongressCritter, looking for re-election in 2012.

    What 2012 incumbent would want to say “I didn’t bring any pork home?”

    “Kill the bill?”

    What 2012 incumbent would risk voting on ANY increase or decrease, when he or she can say “the last Congress did it?”

  • ihateliberals

    didn’t anyone every hear of the Five Year plan. This is basic business 101. Two years means nothing in long range planning. Who knows what is going to happen in two years. What if Hussein Obama should win again or even any other Democrat should win. What then?

  • NHConservative0227

    I called Boehner last week about supporting Hal Rogers for the Appropriations Committee and Fred Upton for the Energy Committee. I voiced my extreme displeasure that he was supporting RINO’s and it was the same old business as usuall like it was the last time the GOP was in charge.

    Boehner’s staffer tried arguing with me as well saying how Boehner is committed to the Pledge to America and that he will keep Rogers/Upton accountable.

    I told them it was a complete crock, that this is not what we voted for. Why should anyone have to keep Rogers/Upton in check, then shouldn’t have been selected in the first place.

    I also told them thanks for trying to feed me back Boehner’s talking points. That its pathetic that I have to waste my time arguing with the new speaker over common sense conservatism.

    These staffers are paid to listen to and to pass on our concerns/frustrations not to try to argue with us.

  • GreyCloak

    You will have done much more than many CongressCritters.

    If you pay taxes, it’s a good deal. You’ll pay more if it doesn’t go through.

    If you don’t pay taxes, why bother? You might have to pay taxes if it fails.

    If you have kids, tell them that you’ll get them more food and presents next year, because you won’t have to pay as much FICA … but remind them that they won’t get much (if any) Social Security … only partially because of this Bill, but mostly because you’ve let Congress spend their future for the past few decades.

    If you think Kudlow, Krautheimer, Rush, and Norquist have the answers, sit back and watch TV.

  • Change Jar Conservative

    Take what we can get.

    It’s a two year extension of the income tax cuts that Bush got us.

    It’s better than nothing on estate taxes.

    It has a social security cut in place as a backdoor stimulas.

    Take the two years and in 2012, we can really fix the problem.

  • Next93

    Just to add to your point, my liberal brother (and others, I’m sure) like to claim that we can’t leave decisions to the marketplace because the marketplace is shortsighted, interested only in making the numbers look good for the analysts, and focused only on the next quarter or, at best, the next fiscal year-end.

    I’ve tried explaining how this is only true of companies that are regulated by the SEC (that is, it’s due to government interference in business), and it’s certainly not true of privately held (read: small) companies or companies that have no expectation of a government bailout, but it’s like shouting at a wall.

    The point here is, if you think that businesses can’t be trusted because they’re shortsighted, why would you institute a tax policy in two-year chunks? If you want people to think in terms of decades, create a stable business environment that encourages investment and job growth, not class envy and property confiscation.

  • fpete13527

    It doesn’t accomplish real substance for job growth and it is now crammed full of pork spending.

    If the GOP, even after the New Year, continue with no spine to the degree they have in the last few weeks, we have bigger problems than just the tax increase.

    The GOP is showing next to no sign that they realize what the mid-terms were about.

    There should not have been a “compromise.” End the deal and create something of value after the New Year.

  • scottb

    I could care less what any incumbent thinks. This deal stinks to high haven and is nothing more than a $950 billion stimulas. If they vote for it I will vote aganist them. That’s the only power I’ve got.

  • bus2dc

    Why does Boehner have to promise to ‘keep Rogers/Upton accountable?? Why would you go in KNOWING you’re appointing people who have to BE WATCHED OVER? We’ve been objecting to Hal Rogers very clearly, he is a special-projects guzzler and obviously Boener just DOES NOT CARE. I have a feeling this is going to be a LOUD January.

    Good luck getting staffers not to argue. Count ourselves lucky to even reach a human – at least we can use them to sharpen our talk points! LOL

  • amigag

    I agree with NH Conservative0227 and other like minded here on this. I live in OH and am not pleased to say the least. Rep. Boehner wasn’t out supporting the Tea Party either. The elite Republican leadership is the problem and a change is needed there. His talk doesn’t match his walk.

    If Rep. Boehner and McConnell didn’t hear the 11/2/10 election results, they will not abide by what the American voters said, whether by a phone call/fax/or an in person visit.

    My opinion: They want to work with the President/Dems for their own interests and make this deal before the Calvary comes to town in January 2011.

    It is one thing in voting for the American people when you are in the minority and know you have that cover; but it’s all together different when you can call the shots. Now we see the true colors coming out. Anyone can talk the talk, but walking the walk takes integrity, not arrogance, which we have plenty in D.C.

  • southcoast

    While I appreciate the Republicans going to bat in the name of restraining the tax rates, I am put of at the entire process over the idea that the money I earn is somehow mine because of the whims of disconnected politicians.
    I an insulted by the arrogance of the elitists that somehow they are the arbiters of what I can keep from my paycheck.
    How is my keeping the money I earn somehow debatable and the subject of discussion by people with no idea of my spending priorities.
    This charade, this Kabuki Theater, should serve to incite the incoming Congress to reduce tax rates and make them permanent and subject to further reduction.
    Concurrently, the new Congress must make its prime target the billions in waste inflicted on the taxpaying public by the ruling class in Washington.

  • jeffersonian76

    Passing this larded up version of what was first a pretty nancy-friendly crap sandwich would be more of the same biz as usual, sausage making mumbo jumbo?.I?d say stall-it-all?.jam the machine?until a more sane group is seated?then drive he RINOS like rent-a-cars and publicize every known fact re; sanders, weiner, hoyer, boxer, etc.
    Of course, I?d like to simultaneously airstrike Iran and N. Korea. I think we should nationalize, annex or otherwise take over Mexico. They want citizenship and amnesty??? poof! Done! Look at all that beachfront! Landscapers, painters, etc. abound! Lots of land irrigate with our ?grey water? – plenty o? acres to grow more food and workers to do it! Nuclear waste sites galore!
    And let?s can this retarded rhetoric of ?Bush Tax Cuts? and let it be known for what it is?the ?Obama Tax Hikes??.The anal pore that is this administration has had plenty of time to do what is economically sane here, and they?ve stalled out to the last minute in some leftist power play.
    Baracko has no guidance from or experience with the private sector – his ?cabinet? is lo-o-o-oaded with socialists, academics, and union excrement – none of whom have any love for an honest day?s work for an honest day?s pay – The public is shamefully unaware of who these people are and how much power they have. Hire Gordon Liddy to have a ?meeting? with Cass Sunstein – that?s a start?.

  • sharinlite

    What happened to the Republicans? Why isn’t there a list of who was “behind” the closed doors. If this is the best we could do, then we need to vote everyone in office out and start anew!! The Republicans just helped Obama and his cronies spend close to another TRILLION…geez, that’s three trillion in less than 24 months. Where are the cajones to wait?

  • texan4america

    NO! The present tax bill is not a good thing for America. As usual, the Senate had to add their PORK to the end — NO, NO, NO! Vote against this. Any present Republican in office in all good conscience cannot vote for this as it will add to the country’s deficit. If the Repubs. do vote for this, those running for re-election in 2012 will find out exactly how long the voters memory is.

  • texan4america

    You got it exactly right. Our government does not need to raise more money from taxing its citizens, our government needs to cut its spending. Our reps need to realize that our tax dollars are not theirs to spend as they wish, it is OUR money and we do have a say in how it is spent. America fought one war because of taxation without representation, would hate to have to do it again.

  • texan4america

    Amen!

  • amigag

    Would someone please explain to me when, how and who elects Rep. Boehner as Speaker of the House?

    Thank you.

  • E Pluribus Unum

    I’m sure that gives you great comfort and peace :)

    Along with this bill currently sucking, it will be further larded up by the Dems that will write the language of the bill.

    I say we wait till January, tie up Kyl and Grassley and make them watch a continual loop of “Close Encounters of the Third Kind”, and let the House GOP write a basic and clean bill that ultimately Bambi will not veto.

  • cam1

    love to play poker with you. You bluff easily. What the dems have done to this legislation gives us the opportunity to hand obama a big defeat. He has control of both houses and still can’t get anything done. It will finish him with his base and take tax issues away from the dems in ’12. When you have them on the ropes its time to go for the knock out.

  • russonline

    Above it’s asserted: “Let?s be clear, Congress can retroactively fix this if the deal fails.”

    Let’s not forget: your “this” includes a capital gains hike in 2011 … which will have HUGE IMPACT on stock market selling decisions in the remaining days of 2010.

    Even if Congress retroactively adjusted the capital gains tax rate HOW EXACTLY are they gonna reverse all those trades that would not have taken place if the capital gain tax rate had been kept the same in 2011 by passing a deal NOW.

  • izoneguy

    Conservatives Attack Tax Deal as Vote Nears

    http://thecaucus.blogs.nytimes.com/2010/12/13/conservatives-attack-tax-deal-as-vote-nears/?partner=rss&emc=rss

    Erik Erickson, the conservative blogger, wrote at Redstate.com that the ?deal must now die. It must now be opposed by Republicans. Released now in print, the legislation is loaded up with budget busting pork of ridiculously absurd levels.?

  • realskinny

    You say you want them to stop spending—then you should be against this bill.

    The estate tax is immoral. The assets one accumulates over a lifetime have already been taxed….Are in fact the remainder after many occasions of taxation. There is no excuse for government thugs to paw through one’s belongings and take whatever they want after someone passes on. It doesn’t matter that I am not personally being robbed, as it wouldn’t matter if I am not personally being raped. Robbery and rape are still wrong and a wealthy man’s heirs deserve our protection just as does a nine year-old girl.

    We can get a much better “deal” in January. This bill should be killed.

  • drifter

    With 800 to 900 billion in new (borrowed money) spending, this horrible tax deal stinks!

  • http://travismonitor.blogspot.com Freedoms Truth

    That would be worth allowing some of the useless pork like ethanol in there.

    But for 2 years of extension? Not so much. We keep having to pay again and again for the smae piece of real estate (see the movie “Patton” for the Patton view on that). The left having a cow over this does not prove it’s a good deal, it only proves that they are unhinged; they want it all even though the election just repudiated them.

    This was a so-so deal for the Republicans, and it was made so because they wanted this done in the lame duck. If the Democrats are willing to screw this deal up, wait until January and get a better one.

    No, we do not need this deal. America DOES need to avoid a massive tax increase, but the new Congress can fix it if the lame duck one won’t.

  • http://travismonitor.blogspot.com Freedoms Truth

    In terms of Obama’s effectiveness, a deal going south would show him to be impotent and incapable of getting things done.

    Then the GOP spends the next session dismantling Obamacare and Obama will run on … what exactly in 2012? How great the economy is (NOT)?

    In fact, he made a basic blunder in not including Pelosi and Reid in the ‘negotiations’ to start with. His fault and nobody else’s that the Dems are balking.

    No deal now is not the end of the world, just the end of the lame duck session. January awaits.

  • pedrom

    Is the issue of the Federal Estate Tax. No issue better illustrates the philosophy of the statists. They really believe money and property belong to the collective. The only issue is the timing of the battle.

  • GreyCloak

    The “cost” to pay for this bill was $80-100 billion in new or renewed spending.

    The “benefit” of the bill is $858 billion in taxes that won’t be paid.

    The estate tax may be immoral, but it has been around since 1797. And the pre-Bush rates survived under Republicans and Democrats for over sixty years.

    “Highway robbery” perhaps, but when did a rich person’s heirs deserve protection from an accident of birth?

    Since the rates that were about to return have been around since the 1930′s, through several Republican Presidents and Congresses, why would you think that a change in one house of Congress would create a “better deal?”

    Our Republicans put the Tax Bill the #1 priority for the lame duck Congress. It’s almost done. What’s to complain about?

  • GreyCloak

    I wholeheartedly agree … ALL incumbents, and any NEW Congress Critter who votes for ANY spending.

    You DO have the power!

  • GreyCloak

    The House (in its entirety) generally votes in the first week of January, after an election, for a new Speaker.

    Technically, The Speaker could come from any party … as a practical matter, The Speaker is elected from the Majority party.

    Constitutionally, The Speaker is third-in-line for the Presidency … after the President and Vice-President.

  • http://ja-js.blogtownhall.com RME KRNL

    Republicans should let this compromise die in the House, blame the Democrats for allowing tax rate increases on everyone, to include the middle class, then craft a better tax-for-jobs and tax breaks package in the new 112th Congress, to be retroactive to January 1, 2011, and to include (a) extending the Bush tax rates for two years for everyone, (b) eliminating the estate tax altogether, (c) eliminating the AMT altogether, (d) keeping the child, college and home mortgage tax breaks for everyone, (e) reducing the tax rates for everyone effective in 2012, (f) reducing the payroll tax not by 2 percent but by 5 percent, and (g) reducing the corporate tax to 25 percent.