The Democrats are having a good debate with themselves over this Obama-GOP tax cut deal. I continue to think Obama was too quick to cut a deal to extend the Bush tax cuts for millionaires and billionaires. When dealing with bullies, the correct answer is NOT "Thank you sir, may I have another?".
But, we are where we are. So, what now?
Well, let's look at the bright side. This debate has been dominating the headlines for the last two weeks and, while Democrats fight among themselves, it is becoming clear as day which party wants to take care of the people at the top while doing nothing to create jobs, and which party wants to take care of the rest of us without adding another 61 billion to the deficit. It's nearly impossible to expose the Republicans for what they really are but this battle has caused them to expose themselves. So, that's good.
While the tax cuts for the wealthy and the estate tax cuts won't do anything to help the economy, there are other things in the deal that will. As it turns out, the deal has a lot of stimulus stuff in it that, theoretically, should help the economy and create jobs. If we can grow the economy, that would increase tax revenues and at least partially offset the 61 billion added to the deficit by giving tax cuts to the rich. A growing economy helped Clinton. That's why he had a budget surplus.
This also works well for the 2012 election cycle. For one thing, the low-info voters who just want Democrats and Republicans to get along just might give Obama credit for boosting the economy. But, here's the big thing. If the Democrats are smart (yeah, I know, that's a big if), they will introduce a bill BEFORE the election to make the tax cuts for the middle class permanent. If the Republicans, in an election year, decide to again hold the middle class tax cuts hostage, they'll be making a huge mistake.
I am well aware of the concern that the payroll tax holiday could become a trap that would allow the Republicans to gut Social Security. That will need to be managed very carefully. I don't want to gloss it over but, for now, just keep in mind two words - seniors vote. Two more words - third rail.
So, for now, progressives should hold out for a better deal and continue making as much noise as possible so there will be no doubt who's on whose side. Maybe get rid of the estate tax cuts and extend the unemployment beyond the 99 weeks when it runs out.
I believe in turning lemons into lemonade. It kills me to type this but - take the deal.