TAXES, THE WHOLE ROTTEN STORY – AT 11:53 P.M.   Sorry for the late posting.  We're in central Virginia, and it is snowing.  I am being blamed for the snow by local liberals.  They're comparing me to Christopher Columbus, who brought disease with him to the New World.  I have accepted blame for bringing the snow, and have attributed it to global cooling. 

President Obama's tax plan went down to defeat in the Senate.  As of now, the Bush tax cuts will expire on December 31st.  That is simply unacceptable.  Mr. Obama wanted to extend middle-class cuts but let cuts for the well-to-do expire.  Republicans want all the cuts extended, and their view prevailed, with the help of some moderate Democrats.

The problem for Republicans here is appearances.  No matter how our side spins it, it's going to look like the GOP is once more favoring the rich.  Mr. Obama's position here is the more popular one.  The GOP, following its smashing victory, is in a tough spot and must come up with a creative proposal that will avoid a December 31st tax hike for Americans.  One idea floating around is to extend all tax cuts, but for only a limited period, like two years.  Sounds reasonable to me.  It kicks the can down the road, with the ultimate decision to be determined by the outcome of the 2012 election.

The new, far more Republican Congress, comes in during January.  It would be a politcal setback if it came in with the party blamed, rightly or wrongly, for a tax hike.

December 4, 2010