We have impending tax increases. We have politicians wrangling, a lame duck session, endless posturing by all concerned.
And yet I believe there's a solution that all parties can accept. I'd bet up to 80% of the population would support it if you could do a poll. It requires just a small dash of pragmatism by all concerned.
Here it is. I defy anyone to raise a serious objection, from the right or left, not grounded in blind ideology.
- Extend all the cuts for 2 years only. Yes, it's a tad hard to swallow, but I don't care all that much if the wealthy get a break for a couple more years. It won't hurt me, and there may be something to providing certainty for that group of business owners who fall into this category.
- Beginning in 2012 apply the higher 39.6% rate PERMANENTLY to incomes of $1 million and above. No one can POSSIBLY argue that $1 million per year is middle-class. This will capture lots of revenue. And if the GOP fights it, we'll be on great political ground: they'll be fighting for continued breaks for those who are UNARGUABLY RICH.
- By doing this deal now, it gets rid of the "certainty" argument. Everyone will know that new rate is kicking in in 2 years.
SO...why not? Why doesn't Obama do a deal like this tomorrow?