Let’s Not Make a Deal By PAUL KRUGMAN

[Joanne98]

Back in 2001, former President George W. Bush pulled a fast one. He wanted to enact an irresponsible tax cut, largely for the benefit of the wealthiest Americans. But there were Senate rules in place designed to prevent that kind of irresponsibility. So Mr. Bush evaded the rules by making the tax cut temporary, with the whole thing scheduled to expire on the last day of 2010.

The plan, of course, was to come back later and make the thing permanent, never mind the impact on the deficit. But that never happened. And so here we are, with 2010 almost over and nothing resolved.

Democrats have tried to push a compromise: let tax cuts for the wealthy expire, but extend tax cuts for the middle class. Republicans, however, are having none of it. They have been filibustering Democratic attempts to separate tax cuts that mainly benefit a tiny group of wealthy Americans from those that mainly help the middle class. It’s all or nothing, they say: all the Bush tax cuts must be extended. What should Democrats do?

The answer is that they should just say no. If G.O.P. intransigence means that taxes rise at the end of this month, so be it.

http://www.nytimes.com/2010/12/06/opinion/06krugman.html?ref=opinion

[Little Star]

1. Krugman is sooooo right! Obama needs to stand up right now!!!!

k&r

[Dr.Phool]

8. He is standing up.

For his real constituents. The rich.

[CurtEastPoint]

2. Excellent short read. The clincher is this:

"...if Democrats give in to the blackmailers now, they’ll just face more demands in the future. As long as Republicans believe that Mr. Obama will do anything to avoid short-term pain, they’ll have every incentive to keep taking hostages. If the president will endanger America’s fiscal future to avoid a tax increase, what will he give to avoid a government shutdown?

So Mr. Obama should draw a line in the sand, right here, right now. If Republicans hold out, and taxes go up, he should tell the nation the truth, and denounce the blackmail attempt for what it is.

Yes, letting taxes go up would be politically risky. But giving in would be risky, too — especially for a president whom voters are starting to write off as a man too timid to take a stand. Now is the time for him to prove them wrong."

[Moostache]

11. After Obama finishes caving on this issue I believe its time to push for resignation.

Its time for him to simply go entirely. Resign the presidency. Allow Biden to finish the term and then allow for a full primary for the party to decide if we wish to simply be pseudo-republicans, slightly left of Reagan or real Democrats in the traditions of FDR, JFK, RFK and LBJ.

If Obama is unwilling to fight, unwilling to stand up for what he SAID he believed and what he PROMISED to do in the campaign, then he is beyond useless, and into the realm of harmful to the future of the party for sure, but more importantly the country as a whole. This issue of tax cuts and whether or not they should be "extended" is nothing but a canard - a delaying tactic for the right to try and get an ideologically friendly administration elected in 2012 that WILL make them ALL permanent. The sheer transparency of this is staggering and surely not lost on a man of Obama's intelligence, which makes it even MORE infuriating - HE GODDAMN WELL KNOWS WHY THE RIGHT IS PUSHING SO HARD FOR THE TOP TIER CUTS, AND YET HE IS DOING IT ANYWAY!!!!

If his only purpose over the next 2 years is going to be capitulating to the craven desires of the Republican hooligans, who are hell bent only on destruction of the functioning government and in protecting the profits of their financial enablers; then its not time for a primary (IMO, THAT is a foregone conclusion based on the way that Obama has walked away from his base and embraced the Blue Dog mentality of self-loathing enough to take contrary positions to what they SAY they believe) - its time for pressure to resign.

Its time to fight and not just on tax cuts, but also on this war in Afghanistan and the continuing deployment in Iraq and everywhere else too.

Its time to go back to the banks and tell them the jig is up and their bill is overdue.

Its time to go back to the health care debate and get a public option for negative price pressure on the industry.

Its time to finally end Gitmo and extraordinary renditions.

Its time to repeal DADT by executive decision.

Its time to tell the Catfood Commission that their suggestions are unwarranted and dangerous to the social fabric of this nation and present an alternative way forward.

Its time to lead, sir - well past time in reality. And if you cannot or will not find the requisite reservoir of strength within yourself to take these steps, to answer the challenge of history and your nation and least of all the small minded bullies of the Republican Party; then it is time to step aside, and allow others to pick up the yoke and at least make an effort.

Others may also ultimately fail, and they too may prove to be disappointing, perhaps even more disappointing than you have become. But, I would rather support people who fight for their core beliefs and are willing to go down with the ship, than defend those who sell out large swaths of their political soul for expediency and tiny concessions from the school yard bullies.

[theaocp]

3. Let them all expire

Tax cuts do not generate much economic action. Period. Like Obama should have done with the court's decision on DADT, JUST DO NOTHING. It's just that simple. :)

[fasttense]

4. RepubliCONS know Obama will NOT call their bluff.

He really believes what they are selling despite what he says at rallies. I'm surprised he hasn't negotiated away Social Security. But give him time. I'm sure the RepubliCONS will come up with some deal to ruin Social Security that Obama will gladly take.

[snappyturtle]

5. K&R YES! I don't know why we don't hear more of this 'option'. nt

[bemildred]

6. Appeasing the Republicans and the banks cannot work, it will only embolden them. nt

[Tippy]

7. K&R....

[TBF]

9. Krugman's right - call their bluff. nt

[patrice]

10. That's what at least some Democratic worker-bees out here in the grasslands are saying.nt

[bhikkhu]

12. I don't often agree with Krugman, but he is right.

...and I think all but the few % that still feel * was a great president know it. I expect some crappy compromise, and hope Obama vetoes it.

[Overseas]

13. Just say no. No more GOP tricks.

Just let the Bush tax cuts that helped crash our economy expire.

But in Washington, where anything beyond last week’s news cycle is considered ancient history, the jury-rigged nature of the Bush plan—and the fiscal sleight-of-hand involved—have been all but forgotten.

“We knew that, politically, once you get it into law, it becomes almost impossible to remove it,” says Dan Bartlett, Bush’s former communications director. “That’s not a bad legacy. The fact that we were able to lay the trap does feel pretty good, to tell you the truth.”


Read more: http://www.businessinsider.com/bush-aides-admit-the-tax-cuts-were-a-trap-for-obama-2010-12#ixzz17LigYqXK

[NorthCarolina]

14. The "deal" to extend tax cuts for the rich has likely been planned all along.

What we are seeing played out here between the Democrats and the Republicans is nothing more than kabuki theater. Obama didn't "cave" on tax cuts, he is complicit. Obama didn't cave by pulling a public option off the table prior to health care reform negotiations, he was complicit. Obama didn't cave when he worked with the GOP in preventing Spain's investigation of Bush war crimes, he was complicit. Obama didn't cave to demands from the GOP that a Deficit Commission be created and stacked with hyper pro-entitlement reform members whose focus would be on cutting Social Security and Medicare, he was complicit.

Obama will continue to be complicit with the GOP. The GOP will continue to falsely label Obama as a "Liberal" and a "Socialist" to get that impression cemented in the public psyche. Obama will lose favor with the public for his continued complicity with conservatives, and likely the election as a result. His loss will be hailed as a HUGE PUBLIC REJECTION of LIBERALISM. Conservatives will have achieved virtually all their political goals during a Democratic administration, and will have effectively tarnished "Liberalism" as a scapegoat for the fallout from a Conservative Democratic Administration. Kabuki.

[Forrest Greene]

15. Has Anyone Considered The Possibility

...that Obama is in fact the stealthiest creation of Karl Rove? Stranger things have happened.

[hay rick]

16. Paying the blackmailers without getting the hostages back.

Paying the blackmailers without getting the hostages back appears to be Obama's plan. Both the unemployment aid extension and "temporary" tax cut extensions will be back again faster than you can yell "I surrender."

[Martin Eden]

17. This is Grover Norquist's plan to STARVE THE BEAST

"So giving in to Republican demands would mean risking a major fiscal crisis — a crisis that could be resolved only by making savage cuts in federal spending. "

Republicans WANT huge budget deficits ... it's the only way they can dismantle Social Security & Medicare.

[allmylove]

18. Thank you Paul.