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Josh Barro

Republicans Shouldn't Cave on the Bush Tax Cuts

Matt Yglesias notes that the tax plan approved by Senate Democrats yesterday, despite being billed as an extension of "middle class" tax cuts, actually has a lot to offer the rich. The plan preserves tax cuts on all income below $250,000, even for people who make significantly more than that. Yglesias wonders if Republicans have the political steel to turn down the offer:

The GOP position has been that middle class families can only avoid their automatically scheduled tax increase if the tax cuts for the rich are looped in. But is that really tenable? It's worth noting that high income individuals benefit pretty handsomely from the "middle class" tax cuts too, so if you're a rich guy you appreciate the GOP holding the line but only if it actually works. The Democratic plan is much friendlier to rich and middle class taxpayers alike than is the possibility of deadlock and full expiration.