A Lose-Lose For House Democrats
Forty-seven House Democrats have sent Nancy Pelosi a letter expressing their support for the Republican position of extending the Bush tax cuts on investment income:
"Raising taxes on capital gains and dividends could discourage individuals and businesses from saving and investing," said the letter, dated Friday and released Tuesday. "We urge you to maintain the current tax rate for both dividend and long-term capital gains taxes."
These 47 Democrats would provide more than enough votes to extend the tax cuts, notes Jennifer Rubin, but Pelosi is unlikely to allow the vote to come to the floor. This, Rubin argues, presents a lose-lose situation for Democrats who've expressed dissent toward Obama's tax plan.
Even though many Democrats now want to extend both these tax cuts on investment income as well as the rest of the Bush tax-cut plan, they have a serious problem with the voters. What’s their pitch? I’d vote for the tax breaks because it’s harmful to the economy to hike taxes during a recession, but my Democratic leadership won’t let me vote. The solution to that is simple: vote for their opponents, whose party would demand a vote and pass the extensions overwhelmingly.
What began as a trap for Republicans has devolved into an ideological and political dead end for liberals. Take the vote and lose, and infuriate the base. Don’t take the vote, and lose scores of House members. At this point, there is no good solution. It seems no one in the White House thought this through.
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May '10
Re: A Lose-Lose For House Democrats
If anything could encourage a transformation of the Democratic Party away from radical progressivism, a large number of Democratic representatives being denied the ability to protect their political hides by their own leadership might do it. I hope so, anyway.
Re: A Lose-Lose For House Democrats
Barack Obama, Rahm Emanuel, Nancy Pelosi, and Harry Reid constitute the gift that keeps on giving.
Aug '10
Re: A Lose-Lose For House Democrats
Like many small business owners, I have an S-Corp set up which affords me a small salary; I get most of my income as dividends from the corporation. There are obvious tax benefits to doing things this way as you don't pay SS or medicare tax on dividends.
This arrangement is very common among small business owners and affords us a tax benefit to offset the risk we take going into business. My understanding is that if the Bush tax cuts expire the rate for dividends will go from 15% to 35% whether or not our income exceeds $250k which will be a huge tax increase for myself and most other small business owners.
Net-net is any plans I have for expansion will go out the window and my current employees will not be getting any raises next year if the tax cuts expire.
Why couldn't the Republicans make the tax cuts permanent when they had control of both houses of Congress? Then we wouldn't be having this little showdown...
Re: A Lose-Lose For House Democrats
It didn't with the health care bill, why would it now?
May '10
Re: A Lose-Lose For House Democrats
Before, Democrats (an insular bunch) were safely cocooned in their own rhetoric. Their leaders cushioned them with sweet white lies about how voters really wanted Obamacare. Voters were just frightened of an uncertain future, and we were sure to see the light once the bill was passed. Since the bill has passed, there's been no room for illusions.
Not buying it? I'm not sure I do either. So how about this...
The surest way for a Democratic candidate to beat an incumbent right now is to run against his or her own party as it stands, claiming to be a new breed of Democrat. Sure, some of these candidates will only pay lip service to such independence or rebellion. But can't we expect some genuine young candidates who hearken back to old-school Democratic ideas, like patriotic communism?
Or is it optimistic to think George Soros doesn't fund every Democratic campaign?
May '10
Re: A Lose-Lose For House Democrats
Diane Ellis, Ed.: Forty-seven House Democrats have sent Nancy Pelosi a letter expressing their support for the Republican position of extending the Bush tax cuts on investment income:
I'm so startled by the content of this letter that I can hardly process anything after the quote, Diane! Democrats - 47 of them - don't want to discourage individuals or businesses from investing? There's change I can believe in!
Too little, too late for the not-quite-Pelosi-left Democrats, I'm afraid...