Just a brief note about the recent compromise between the administration, the current leadership, and the incoming leadership about taxes: we should support it. Keith Olbermann and Rachel Maddow recently called the compromise disgraceful and Maddow in particular said that Obama is at risk of becoming "a joke". This is really facile analysis.
No, this is a reasonable compromise. Liberals did get a lot out of it.
For instance, the deal includes a 2% cut in payroll taxes payed by employees. This is a one year deal, but it's double what the administration wanted going in. They wanted a mere extension of their Make Working Pay tax credit, worth $60B in tax relief for working people. The payroll tax cut in this deal is $120B in relief for working families. The payroll tax cuts in this are really progressive. Don't you think that makes it worth while? Now, progressives have been pushing for a full payroll tax holiday, which would have been really great. But a 2 point cut? The GOP caved on this, and we should be happy about it. This isn't even considering the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit all of which were due to be reset to pre-stimulus levels. Now they're extended, and this directly benefits the middle class.
Another incredibly important thing that isn't getting enough attention is that the compromise is a much better outcome than was expected last week, to be honest, on unemployment. Last week we were talking about what's going to happen when unemployment benefits lapse. This deal would extend them for 13 months. That's a big deal. No Jim Bunning filibuster, no holding this hostage every two months.
Moreover, as a result of the de facto stimulus this provides, Mark Zandi says this deal could add a point onto growth next year. One point is a hell of a lot. It's a definite win even at only half that, since it's disproportionately helping poor and middle classes.
Like any compromise, there are things to hate about it. Yes, the rich who keep all their money get to keep keeping it. Yes, estate taxes are still basically nonexistent. But governing is about taking the bad with whatever good you can get, and it's this or nothing, realistically. This liberal hate is just not helpful. What about "lame duck session" do they not understand? 60 Democratic congressmen are about to be replaced by Republicans who would just extend the tax cuts and give liberals nothing. Does that seem like a good outcome?