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A Super Tax Hike Spells Disaster: Better to Fall Back on the Trigger
Rea Clear Politics ^ | November 17,2011 | Larry Kudlow

Posted on 11/17/2011 8:49:50 AM PST by Hojczyk

Trouble is, Democrats don't buy into it -- at least not yet. Senate supercommittee members Patty Murray and John Kerry have opposed real tax reform. And it has been reported that House supercommittee member Xavier Becerra opposes it (although Chris van Hollen might be looking at it).

But the whole trouble with the machinations of the two sides in this deficit-cutting episode is that the closer you get to the Nov. 23 deadline, the more compromises are made. Democrats are pulling hard for higher tax rates, which would damage the economy, while Republicans are making no progress getting any meaningful health care entitlement reform.

And the GOP is in danger of losing the narrative. Most of the noise is coming from Democratic proposals for higher taxes, while Republicans have not taken any entitlement-spending-cut scalps.

In all likelihood, Hensarling will succeed in his conference with the idea of making the George W. Bush tax rates permanent in return for about $300 billion of loophole-closers. The deeper-tax-rate-cut Toomey reform doesn't seem to be gaining traction.

Trouble is, so-called tax reform would probably be handed over to the tax-writing committees in the Senate and House for a decision next year. At deal-time this year -- if there is a deal -- we won't know what the tax-rate picture will actually look like. At least, that's a risk. But it's possible in a worst-case scenario that personal-deduction limits will be hammered out upfront, without any assurances of lower tax rates next year.

All this leads me back to this question: Where are the super spending cuts? Nowhere. So why not fall back on the across-the-board budget-cutting trigger known as sequestration? That's the $1.2 trillion backup plan if a $1.5 trillion deal cannot be reached. (Hensarling called the $1.2 trillion backstop very important.)

(Excerpt) Read more at realclearpolitics.com ...


TOPICS: Government; Politics/Elections
KEYWORDS: bankrupt; broke; debt; deficit; spending; stupidcommittee; supercommittee; taxes

1 posted on 11/17/2011 8:49:52 AM PST by Hojczyk
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To: Hojczyk
I'll say it again. If a tax hike is inevetible, as it appears to be, Republicans should simply announce that they will abstain or vote "present."

It will be a Democrap-only tax hike. And the ensuing economic collapse will be on Democrap shoulders only.

Betcha if Republicans announce this, no Democraps will vote for it!

2 posted on 11/17/2011 8:54:17 AM PST by FroggyTheGremlim (Democrats: the Party of NO!)
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To: Hojczyk

The Democrats don’t want a deal.

The GOP is even offering tax hikes. You might remember Hensarling, that backer of Dede Scozzafava.... he is reportedly ready to support higher taxes to get a deal.


3 posted on 11/17/2011 8:55:29 AM PST by GeronL (The Right to Life came before the Right to Happiness)
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To: eCSMaster

The GOP has a majority in the House, a tax hike won’t pass unless it gets some Republicans to vote for it.


4 posted on 11/17/2011 8:58:35 AM PST by GeronL (The Right to Life came before the Right to Happiness)
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To: GeronL
If we are going to raise taxes.

I would tax Union dues.

5 posted on 11/17/2011 9:18:22 AM PST by scooby321
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To: Hojczyk

Where are the super spending cuts? Nowhere.
D.C. still being D.C. the only thing that changes are the names.


6 posted on 11/17/2011 9:24:04 AM PST by Vaduz
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To: GeronL
"The GOP has a majority in the House, a tax hike won’t pass unless it gets some Republicans to vote for it."

No, if the Repubs abstain or all vote "present," and a significant number of Democraps vote "Aye" it would pass.

This would be a sure-fire way for the Repubs to shut the Dems up once and for all.

Because I'm betting the Dems won't pass a tax increase that will kill the economy.

7 posted on 11/17/2011 10:36:18 AM PST by FroggyTheGremlim (Democrats: the Party of NO!)
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To: eCSMaster

SO you call a tax hike a victory for the GOP?

Because a lot of us conservative will just stay home on election day and let you GOPers enjoy that victory.


8 posted on 11/17/2011 11:09:40 AM PST by GeronL (The Right to Life came before the Right to Happiness)
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To: GeronL
"SO you call a tax hike a victory for the GOP?"

No. The victory would be when the Dems see that the tax hike and the ensuing economic disaster will fall squarely on them, with no Republicans to blame, they will not vote for tax increases.

It will shut them up once and for all about tax hikes.

9 posted on 11/17/2011 11:49:32 AM PST by FroggyTheGremlim (Democrats: the Party of NO!)
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To: eCSMaster

hahahahahahahaha

You really think results matter to the Democrats and MSM??

The GOP could be out of power for 30 years of economic collapse and they will still be the enemy to the media and establishment.

The Republicans will be blamed in your scenario. The Republicans will always be blamed if something bad happens.


10 posted on 11/17/2011 11:55:50 AM PST by GeronL (The Right to Life came before the Right to Happiness)
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