Now this is a surprising and positive development – some Democrats are calling on the administration to extend the Bush tax cuts.
Some (mostly Blue Dog) Democrats want President Barack Obama to extend Bush’s across-the-board income tax rate cuts now scheduled to expire at the end of 2010, arguing that a tax increase could hinder economic recovery.
"I think there is a certain logic to leaving well-enough alone for now, given the fragility of the economic recovery," said Rep. Gerry Connolly (D., Va.). "It's a question of prudent judgment and timing."
Much of this is being driven by the fact that a number of Democratic strategists, looking toward midterm elections, see political disaster in heading into the November elections with looming tax increases on the horizon. Tax increases would almost certainly be a huge wedge issue for Republican opponents as Democrats try to defend their majorities in both Houses.
Rep. Harry Mitchell (D., Ariz.), a second-term congressman who held on to his seat in 2008 with 53% of the vote, wrote Obama last week asking him to extend the lower capital gains and dividend rate, and estate tax rates.
“Given the unique economic difficulties we face as a nation, this is the wrong time to raise these taxes. We need to retain these tax cuts that encourage investment that stimulates growth and job creation,” Mitchell wrote.
In the wake of the Scott Brown victory in MA., this certainly looks like a no-brainer, but then again, this administration has been pretty brainless on the economy, so far. With GOP victories in Virginia, new Jersey and Massachusetts, it looks like any kind of major healthcare reform is on hold, Cap and Trade is all but dead and allowing the Bush tax cuts to expire looks tenuous at best.
