MORE ON TAXES – AT 10:21 A.M. ET:  The signs of some compromise on extending the Bush tax cuts are taking shape, with some public negotiating taking place on interview shows.  But beware the monkey wrench.  Some in each party are ready to throw it.  From The Politico:

Negotiating over the extension of Bush-era tax cuts played out live on the TV talks shows Sunday, with Sen. Orrin Hatch (R-Utah) saying he favors permanent extension of the tax cuts but would accept two years and Sen. Ron Wyden (D-Ore.) calling for a one-year extension.

"We're going to have to kick it over" for two years," Hatch said on CNN's "State of the Union." He said Republicans would agree to extend the expiring tax cuts and expired unemployment insurance payments as part of that deal, but would not be willing to add in any other sweeteners for Democrats. "Beyond that, then I think things break down," he said.

Hatch, however, also said it would be "disastrous" for Congress to leave town without a deal - allowing the higher, Clinton-era tax rates to return.

"I'd be willing to go along with a one-year extension," Wyden said. "Washington is all driven by a culture of procrastination," he said in explaining why he opposes a longer extension.

COMMENT:  We've echoed Hatch's logic here.  It would indeed be disastrous for Congress to leave town without deciding the tax issue.  The uncertainty would damage the economy still further.

And, yes, with all the faults inherent in the system, the GOP should go along with an extension of unemployment benefits.  There is, no doubt, plenty of cheating and manipulating in the unemployment insurance system, but there is also plenty of legitimate need.  We have 9.8 percent unemployment, and a much higher rate of underemployment.  Ronald Reagan often spoke of the need for a social safety net.  As a governor, he'd seen it work.  I think Hatch's stand is correct.  Agree to the extension of benefits, but not to any other Democratic programs that the libs will try to sneak into a tax bill.

December 5, 2010