He says that, though the deal is a win for the Republicans’ policy priorities, it leaves open an opportunity for the Democrats:
On Dec. 31, 2012, three weeks before the end of President Barack Obama’s current term in office, the Bush tax cuts expire. Income tax rates will return to their Clinton-era levels. That amounts to a $3.6 trillion tax increase over 10 years, three or four times the $800 billion to $1.2 trillion in revenue increases that Obama and Speaker John Boehner were kicking around. And all Democrats need to do to secure that deal is…nothing.
But, as Ezra points out, that only works if the Obama administration is on board. And that’s a big if. It’s tried to split the tax cuts into those for the rich and those for everyone else, but it’s a distinction lost on the GOP. Moreover, I fear both President Obama and the Democrats will be much more amenable to extending the Bush tax cuts as the 2012 election draws near. After all, they haven’t created jobs or produced growth, and now they want to raise taxes too? Who’s going to vote for that?
