Saturday, October 1, 2011

Of Course They Are

Democrats push tax hikes first in deficit talks

Or so says the Reuters headline. More "dog bites man" stuff, as discussed previously. But it appears that the Democrats haven't demanded that the tax rises be front loaded, only that they be discussed first.

To reiterate, the Republicans should say, "Sure, phase out all deductions starting in 2016 and lower marginal rates somewhat while were at it. Vastly simplify the tax code. This will increase taxes on the rich, just like you want. Now can we discuss some budget cuts to take immediate effect and agree on some entitlement reform while were at it? Because we're only going to accept $1 in tax increases if there is a matching $3 in spending reduction." After the Republicans blow out the Democrats in 2012, because there will be punishment for their handling of the economy, then keep the simplification and lower the rates further.

Republicans shouldn't be idiots, they could easily turn these negotiations to their advantage. This could be a teachable moment after all.

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