The GOP needs to learn that not everything labeled a tax cut is a good thing, especially when proposed by a Democrat. That’s the moral of the story with President Obama’s flirtation with the GOP by offering a two-year extension of the so-called “Bush Tax Cuts.”
Set to expire on January 1, 2011, letting the cuts expire amounts to a huge tax increase on an already hurting economy. Obama knows keeping them going is big on the GOP wish list, so he’s offering the two-year extension in exchange for what amounts to a third Stimulus Bill.
And unfortunately, the GOP that took power in the house has no say in it; the current lame-duck Congress is still in power. It’s the kind of move that could make Obama look good and the GOP look bad, because they ran on an agenda that sets them against the very sort of spending bill this Stimulus Tax Cut bill represents. It’s stuffed to the gills with earmarks.
Of course, all the life insurance quotes in the world won’t turn a dime into a diamond; the best thing the GOP could do is call Obama’s bluff, reject the bill and call for an up-and-down vote on extending the tax cuts. As a lame duck Congress, what do they have to lose?