I think the GOP needs to kill the tax compromise.
This is not a hill to die on. It is certainly a gamble. Those who support the deal argue that it is too great a gamble to assume we could get a better deal next year when the number of Republicans in Congress increase and the GOP takes over the House.
I’ve made it easy for you. You can go here to call your Senator and tell him to vote against the tax compromise.
They say that the deal is reasonable and we can hope for no better on the estate tax increase. But that argument defies all sorts of rhetoric.
Supporters of the tax deal say that increasing the estate tax from zero to 35% is actually a tax cut because otherwise the estate tax will go up to 55%. But at the same time they are arguing that keeping income tax rates frozen is somehow a tax cut because otherwise those rates will go up next year.
There is a general inconsistency there.
In effect, what we are arguing about is keeping the income tax rate the same in 2011 that it is right now.
Let’s be clear, Congress can retroactively fix this if the deal fails.
It is not a hill to die on. There is lots of uncertainty. But I am willing to take the gamble that any deal we get next year will be far better than any deal we get this year, when such a deal depends on making it palatable to Nancy Pelosi.