What Does Compromise on Bush Tax Cuts Look Like? A compromise on these tax cuts is simply another way of saying tax hike. If the republicans are for the permanent extension of the Bush era tax cuts, essentially leaving the tax code as is, and the Democrats are for the elimination of the tax cuts altogether, how do you compromise. This is the perfect example and opportunity for the Republicans to demonstrate how they intend on “compromising” with Democrats. Imagine if the Republicans go the White House and announce that they have a deal where the middle class tax cuts are made permanent, but the upper income ones are not. Is that a victory in that they got some of the tax cuts to go through? No, it is not. Another way to translate this is to say that the Republicans agreed to raise taxes on the upper income earners, including small businesses. And don’t think such a tact won’t be used against them in the 2012 election.
The problem with compromise as it has existed for decades is that the Democrats have been allowed to set the agenda and the Republicans, in an effort to compromise, simply try to limit the full scope of the Democrat initiative. So, for example, the Democrats say that we need a stimulus of 1 trillion dollars and the Republican response might be to limit it to 800 Billion. This is the compromise that got them booted out of office in 2006 and lost the white house in 2008. The type of compromise that got them elected in 2010 was saying absolutely NO to healthcare and several other pieces of legislation. Instead of trying to compromise with the Democrats on the premise that taxes will get raised on some or all people, let’s change the narrative. Let’s propose that not only are we going to extend the Bush Tax cuts, but we are also going to propose several more while we are at it. This way we put the Democrats in the position to reacting to the agenda we set and frame them as the ones that cannot compromise.