Right after the election, the media framed the victory in terms of what would compromise look like, effectively setting the trap for the Republicans. As part of the tide that swept the Dems out of office, the last thing I was hoping for was compromise. As has been said, how do you compromise between food and poison. How do you compromise between fiscal responsibility and irresponsibility. You don't. Compromising on either means that you were just a little bit irresponsible, but irresponsible never the less. So when I hear that the Republicans scored a great victory in the tax cut debate, I do not celebrate, but mourn the fact that they have allowed the country to ingest poison. That poison comes in the form of a 13 month extension to unemployment. As if that isn't enough to kill growth, they also allowed the estate tax to go up from 0% to 35%. Now, if you rely on the media for your news, they will have framed it to say that the estate tax went from 55% to 35%, so at least the Republicans got something. This is crazy talk.
The Republicans stood their ground on the principle that incomes over $250,000 are not actually rich, but also small businesses and that their taxes should not go up. Why did they not apply this same principle to the estate tax, where the people most affected are farmers and small businesses, where the cost of leaving the farm or businesses to a relative ends up being so high due to taxes, that it closes down. This is just one layer of why the Estate tax is morally wrong. The other is that you are literally taxing money that has been taxed over an entire life time. The government has not right to a person's estate upon passing.
By yielding on this point, the Republicans will have effectively gone along with a massive tax increase on estates, and increasing the debt through unemployment welfare extension. I think we have our answer on what kind of Republicans we have.