Watching progressive Democrats turn on Obama over the Bush tax cuts is so luscious--a chance to watch our enemies engage in group seppuku.
I confess that I have slightly mixed feelings about this tax cut matter. On the one hand, we have a serious deficit problem, and in a static way, extending the tax cuts increases the deficit. In addition, it is difficult for me to cry a lot of tears for families making more than $250,000 a year. Also, the cost of living in California, New York City, and Washington DC is so high that $250,000 a year for some families is not living quite as high on the hog as it sounds like here in Horseshoe Bend.
On the other hand, raising tax cuts during a deep recession like this will almost certainly reduce revenue even more, making the deficit even heavier. This is especially the case since a fair number of those families earning $250,000 a year are actually businesses filing Schedule C. Raising tax rates might well cause some small business owners to decide that it makes more sense to work less, and spend more time with their kids. You know, that might not be a bad idea, anyway.
Nick Gillespie claims that cutting 3.6% of the budget in each of the next ten years would make up for extending the tax cuts. It does not appear that he is assuming any Laffer curve magic, either.