If you talk to the tea party protesters, they would be happy doing away with the deficit, even if it means giving up their own Bush tax cuts…just kidding. They are probably completely oblivious to the fact that cutting the deficit would come out of their own pocket.
AP: With the most sweeping tax cuts in a generation due to expire in January, the Democrats are divided over whether the government can afford to make any of them permanent — especially with voters increasingly upset over the fast-rising
federal budget deficit.
Democratic leaders want to let the cuts for the wealthiest Americans expire. The Democrats want to extend them for everyone else, but perhaps only temporarily, out of concern for the rising red ink … Passing only a temporary extension would open majority Democrats to claims they are planning middle class tax hikes in the future
Obama's plan would cost $2.5 trillion over the next decade (which includes) the cost of an annual fix that spares the middle class from being hit with the Alternative Minimum — a hit of about $3,700 a year. It would cost $2.9 trillion over the next decade to extend all the tax cuts, including AMT relief, according to estimates from the Tax Policy Center, a Washington think tank.It's a big difference, but still adds $2.5 trillion dollars over ten years. I wonder if conservatives would go along with keeping their tax cut knowing it's going to jack up the deficit? The other BIG rub? Check out this report from MSNBC:
Some rank-and-file Democrats are arguing to extend all the tax cuts, including those for high earners, for a year or two, until the economy recovers.Adding credibility to David Frum's warning to conservatives, the GOP has a huge problem.
I see an obvious strategy developing, don't you?
Republican leaders have opposed much smaller spending bills that would add to the national debt — most recently a $34 billion extension of unemployment benefits …But they endorse more federal BORROWING to make all the tax cuts permanent.
Some Democrats like the idea of forcing Republicans to vote on a bill that would extend tax cuts for middle- and low-income families while leaving the tax rates to increase for high earners. GOP lawmakers say they will try to amend the bills to extend all the tax cuts.
But if they are unsuccessful, would Republicans vote against tax cuts for the middle class? "It's kind of a conundrum," Grassley said. "I'm not sure I can answer your question." Rep. Dave Camp said it would be difficult to block a bill extending middle class tax cuts, even if it doesn't stop tax rates from increasing for high earners. "I'll probably vote for it myself," Camp said.