Thursday, December 09, 2010

Obama Finally Forced To Join The GOP

The interesting debate regarding the extension of the Bush tax cuts dramatically exposes the divide between centrist and liberal Democrats. Good. It's about time the liberals became more assertive:
Judging the significance of the vote is tricky. According to ABC's Rick Klein, the mastermind of the maneuver, Rep. Peter DeFazio, D.-Ore., the vote rejecting the deal "was nearly unanimous." Speaker of the House Nancy Pelosi declared in a tweet that "we will work to improve [the tax cut deal] before having a floor vote."

However, the vote was non-binding, and if House Republicans fall into line, as expected, Obama doesn't need anything close to a majority of Democrats to pass the bill.
They say the deal isn't so bad for Democrats, and they may be right, but the lack of a deal isn't so bad either. Liberals have choices. Good. It's time to Break Left:
If you look at the numbers alone, the tax cut deal looks to have robbed Republicans blind. The GOP got around $95 billion in tax cuts for wealthy Americans and $30 billion in estate tax cuts. Democrats got $120 billion in payroll-tax cuts, $40 billion in refundable tax credits (Earned Income Tax Credit, Child Tax Credit and education tax credits), $56 billion in unemployment insurance, and, depending on how you count it, about $180 billion (two-year cost) or $30 billion (10-year cost) in new tax incentives for businesses to invest.

...Let's start with the Republicans. For one thing, the things they wanted were things they really, really wanted. A number of sources with direct knowledge of the negotiations have fingered the estate tax as the major player in the size of the deal. "Republicans were extremely eager to get benefits for the top tenth of a percent of Americans," says one senior administration official.

...And it went beyond the estate tax: Conservatives saw the extension of the tax cuts as an important pivot point in American politics -- full stop.

...To put this in perspective, consider that last week, all Washington could talk about was the potential for a deal on deficit reduction. This week, it actually got a big deficit deal -- but it was a deficit-expansion deal. In the world that politicians claim they live in -- where the deficit is the overriding issue -- the deal couldn't have worked. But we don't live in that world. In this world, tax cuts, not deficits, are the Republicans' central concern, and stimulus, not deficits, obsesses the Democrats.

Which brings us to the liberals. My conversations with various progressives over the past 24 hours have convinced me that the problem is less the specifics of the deal -- though liberals legitimately dislike the tax cuts for the rich, and rightly point out that Obama swore to let them expire -- than the way in which it was reached. Put simply, Obama and the Democrats didn't fight for them. There were no veto threats or serious effort to take the case to the public.

Instead, the White House disappeared into a closed room with the Republicans and cut a deal that they'd made no effort to sell to progressives. When the deal was cut, the president took an oblique shot at their preferences, saying "the American people didn’t send us here to wage symbolic battles or win symbolic victories." And this came a mere week or two after the White House announced a federal pay freeze. The pattern, for progressives, seems clear: The White House uses them during elections, but doesn't listen to, or consult them, while governing. In fact, it insults them, and then tells them to quiet down, they got the best bargain possible, even if it wasn't the one they'd asked for, or been promised.

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