tag:blogger.com,1999:blog-6926413038778731189.post3729944310676421138..comments2023-10-16T07:13:12.123-05:00Comments on A plain blog about politics: The Obama Tax Cuts and BargainingJonathan Bernsteinhttp://www.blogger.com/profile/15931039630306253241noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6926413038778731189.post-70915244390883046192010-12-07T08:00:08.640-06:002010-12-07T08:00:08.640-06:00Ron,
I can't say for sure. I do think that t...Ron,<br /><br />I can't say for sure. I do think that there's a good case that can be made for it -- and that Democrats certainly campaigned this time around for the "middle class" tax cut. But, yes, if circumstances were different, perhaps they wouldn't have. As for the GOP, again, I think there's a good case that can be made that they think of the lower-level cuts as a way to buy what they really want, but it's not easy to know whether it's true or not.Jonathan Bernsteinhttps://www.blogger.com/profile/15931039630306253241noreply@blogger.comtag:blogger.com,1999:blog-6926413038778731189.post-40994358558813968962010-12-06T20:13:42.380-06:002010-12-06T20:13:42.380-06:00I don't see much reason to think those four as...I don't see much reason to think those four assumptions aren't correct. <br /><br />I just wish Dems would get the spin right once so we can at least be more confident in saying that it probably didn't matter.Davehttps://www.blogger.com/profile/15955054735802185726noreply@blogger.comtag:blogger.com,1999:blog-6926413038778731189.post-83154142372399884452010-12-06T19:41:24.470-06:002010-12-06T19:41:24.470-06:00Re the correctness of the assumptions (1) "th...Re the correctness of the assumptions (1) "that Republicans are basically indifferent about tax rates for everyone else [except for the rich]" and (2) "Democrats care quite a bit about tax rates for everyone outside the wealthiest Americans."<br /><br />Didn't Republicans pass what we now call the middle class tax cuts over substantial Democratic opposition in Bush's first term? Does it make sense to assume that they've suddenly become indifferent to rising middle class tax rates now, especially when they're promising to pass an across-the-board extension of the Bush tax cuts as the first act of the new Congress if they're allowed to expire during the lame duck session? I think starving the big government beast has always been, and still is the prime Republican objective. Middle class tax cuts still serve that end. <br /><br />Democrats' support for lowering middle class tax rates, on the other hand, is (and should be) circumstantial. It makes sense as the best available demand-side stimulus measure when there's 10% unemployment and monetary policy is largely tapped out. But that doesn't mean it's a good idea once the recovery has progressed far enough that monetary policy regains its traction. Under those circumstances, the distinctively liberal why of giving tax relief to the middle class is through well-targeted tax credits and deductions which get more effective as tools of economic regulation and redistribution the higher underlying tax rates are. <br /><br />If you ask me, the idea that the Democrats are the party of middle class tax RATE reductions isn't selling politically because everyone knows its an ephemeral phenomenon.Ron Reploglehttp://ronreplogle.comnoreply@blogger.com