I’ve been writing quite a bit about Nancy Pelosi’s shift on the Bush tax cuts, from a demand that the top two brackets, over $250,000 in income, revert back to Clinton-era rates, to a new call for tax cuts on incomes over $1 million to expire. I got a little pushback from some who argued that this is nothing new, and that Democrats, particularly Chuck Schumer, had been flirting with the millionaire dividing line for a while. I’m not sure why that was any better, but there’s no question that Pelosi’s stance specifically on the Bush tax cuts sowed confusion on the Democratic side, and left them without consensus.
Now, Pelosi, in a USA Today op-ed her office blasted out to reporters, essentially admits that her dividing line on the Bush tax cuts represents a change in direction. In fact, she offers a reason for the change.
Democrats have always opposed the Bush tax cuts for the wealthiest Americans. Since President Obama’s election, we have repeatedly called for an end to tax cuts for those making more than $250,000 a year. Republicans have rejected this effort, holding tax relief for the middle class and small businesses hostage to permanent tax breaks for millionaires, Big Oil, and corporations that ship jobs overseas.
Democrats are committed to moving the process forward by asking the wealthiest to pay their fair share through the expiration of tax cuts for those earning over $1 million a year. Democrats are committed to using the significant savings to reduce the deficit. And in the future, Democrats are committed to reforming the tax code, closing special interest loopholes.
So, Democrats were once united on the $250,000 dividing line, but now, in an effort to “move the process forward,” Pelosi has decided to reduce revenues by 43%, half of which would go directly to millionaires on their marginal income between $250,000 and $1 million. This is called “negotiating with yourself.” Republicans aren’t interested in letting any of the Bush tax cuts expire. They’ve made that abundantly clear. So pushing the dividing line up and up won’t get Republicans to agree to anything. Moreover, it just weakens the bargaining position, especially when there’s no consensus number.
Now, I happen to think that, for many of these same reasons, creating an artificial dividing line at all is a policy doomed to failure. It didn’t work in 2010, as Republicans simply refused to sever the “middle class” tax cuts from the rest of them. As a result everything got extended. The only way to gather revenue from the expiration of the Bush tax cuts is to let them all expire. After the fact, then you can go back and create “Democratic tax cuts” or “Obama tax cuts” for the middle class, and like the payroll tax cuts debate, it will be difficult for Republicans to say no. But they won’t help before the fact by separating two kinds of Bush tax cuts.
Democrats counter that the fiscal cliff will offer opportunities for a grand bargain on taxes and spending, and you could get a split on the Bush tax cuts in that scenario. But that argues not for abandoning the pledge, now four years in the making, on expiring the tax cuts above $250,000 in income. It argues for a strong opening bid, if there’s a negotiation in process. It doesn’t suggest that you “move the process forward” months before the negotiation starts.
UPDATE: I should note that the USA Today editorial board called out Pelosi over this today, on the facing page.




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Nancy: “Democrats are committed to moving the process forward”
Translation: “We have only begun to cave. You ain’t seen nothing yet.”
Nancy: “Democrats are committed to using the significant savings to reduce the deficit.”
Translation: “We have completely bought into the neoliberal agenda”
Nancy: “And in the future, Democrats are committed to reforming the tax code”
Translation: “And if you believe that, I have a used EFCA to sell you.”
Excellent translation.
Ya’ know, the word “turncoat” just doesn’t adequately describe her.
Thank heavens we have Obama on our side…………
Uh-oh.
I totally agree that the right thing to do is let them all expire. It would be hypocritical to have called them Bush Tax Cuts For The Rich for 10 years and now say “Well, we wouldn’t admit it before, but the middle class got some pretty good benefits from those tax cuts too, so let’s keep the Bush Tax Cuts For The Rich for those who make less than $250,000 or $1,000,000.”
Bush Tax Cuts For The Rich are ok for lower wage earners.
Republicans refuse to cooperate, Democrats give in.
Republicans refuse to cooperate, Democrats give in a little more.
and on and on and on and on…
I’m pretty sure eleventy dimensional chess is played on an etch-a-sketch. So whether it’s Romney tilting it up and shaking it, the presididn’t tweaking the dials with a bent on the right one, or one of the congressional do-nothings holding her mouth funny and screwing up her face, we all get fucked-up, jerky, misrepresentation.
It’s a feature, not a bug!
There are NO answers to America’s problems…
To be found in the corrupt Democratic or corrupt Republican party’s…
ALL are corrupt.
But we’ve got Harry Reid in the Senate on our side………
Uh-oh…….again
Republicraps refuse to cooperate, Demnocans give in.
Republicraps refuse to cooperate, Demnocans give in a little more.
and on and on and on and on …
(Fixed it for you)
The Democratic party keeps moving right. Why? It’s not what got them elected or will get them elected.
That is THE question and there is no answer that I can find. I have now spent almost 4 years trying to figure it out and still haven’t. It puzzles me because it isn’t logical. Obama is a Republican – that I get. But at least some of the Democrats are Democrats, or used to be. I don’t think we’ll ever have an answer.
I think taxes should be cut on everyone; once the dollar reserve system collapse and the US loses its ability to fund its expenditures with debt, the low taxes will lead to an immediate emasculation of the multiple voluntary wars and unconstitutional police state. Things to look forward to.
They move toward the money and it is all going to the top.
The fiscal cliff is artificial. It was manufactured for the purpose of destroying Social Security. The US has a fiat currency and can never go broke. Obama can use coin seigniorage to pay the debt and does not need Republicans.
The Democrats have made the decision that what will get them elected in the future is money for television ads. There is no organization on the ground that can gather in what is left of their rapidly diminishing base, so they are now competing for the same pool of money as the Republicans, albeit with a slight differentiation in the product they are offering.
I think it is fair to say that the Democratic Party has essentially thrown in the towel on democracy as we used to know it. The Republicans threw it in 40 years ago. The so-called debates over policy really are inside-the-beltway debates, because that is where the ad money is. The sheeple are just the object of the ads, and their reaction to particular amounts of money spent on the ads can be predicted to a rough approximation. This is politics by Neilsen.
JerryB,there is no Dem vs GOP…..they are the same people(Corporatist Pigs) pretending there is a difference and as you pointed out,in the end, after the pretend fight(Kabuki Theatre)miraculously Corporations win & we the small people lose.
Regardless of how big majorities the Dems have in congress Corporations will still be able to put their feet on our necks.
Nah. This 1-million number WILL help get her elected. It’s a big, round number that most (as in “numerous”) voters will support. Much more comprehensible than $250k. “Tax the millionaires.” Yeah, that sounds good.
This has nothing to do with negotiating, and everything to do with sounding good before an election.
She’s a good girl doing just what the chief wanted. I’m shocked I tell ya just freaking shocked. Whoever woulda thunk it?
Pelosi has decided? Pelosi decided nothing. Pelosi is carrying water for the Obama admin here. That’s why there has been no real pushback of any kind on this development.
As I said when this first came up, Pelosi is the consummate Democratic pol. She didn’t go off the reservation here. This was discussed with and probably directed by the Obama White House, and the reason they wanted Pelosi to be the one is because she is widely seen as the base as an honest liberal. Having Pelosi move the goal posts helps to mute progressive opposition. The entire Obama playbook is about stopping progressive opposition to Obama’s Republican policies. And he’s been remarkably effective.
The next shock comes when she and Harry propose a grand bargain to cut spending on old folks and the sick. It’ll be another shocker. But you know we have to do it to get our fiscal house in order. Oh wait, we may need to balance off some of that with defense spending.
But Obama can say “who me?” Nah it was the progressive folks in congress decided to cut spending and lower the taxes on the rich.
Besides how you gonna match that billion by Koch brothers, et. al. unless you have a few of the “connected” in your stable. Democracy and capitalism, two bedfellows for suffering of the poor.
It makes their corporate donors feel more comfortable. Oh wait, you must have been thinking that Democrats were supposed to represent the “little guy.” Not any more.
But we’ve got Harry Reid in the Senate on our side………
Great! I read somewhere that he’s a feisty little boxer. Or was that “feisty little Boxer”?
Either way, I’m sure now that we’re saved! Yay!
How about a tax cut for people who make over $1 million a year, but consider themselves “middle class” at heart?
That’s coming. give it time.
As Tom Ferguson has illustrated, http://ineteconomics.org/sites/inet.civicactions.net/files/BWpaper_Ferguson_040811.pdf, congressional leadership positions and plum committee seats are bought on a play to pay basis. You raise big money for the party, you get the posting your “contribution” entitles you to. So, where does one suppose all the money for “contributions” comes from and why is anyone surprised that Pelosi is moving towards the Republican goalposts? She’s actually moving towards her sponsors, as is every congressperson who has a stake in the system status quo–which would be almost all of them.
And that’s not to mention Pelosi’s own wealth.
I am so done with Nancy and the Jets. Just mailed my ballot in and voted for Barry Hermanson, the Green Party Candidate.
Wish your analysis was accurate, but there will always be funding for war even if every social program has to be eviscerated.
And the republican House is going to agree to ANY tax increase on wealthy americans?
This is those university degrees: BS, MS, and PHD…
Or: bull-shit, more-shit, piled-high-and-deep.
And both Pelosi and Obama fucking well know it.
there is no such thing, these “tax cuts’ are obama’s
Obama will not allow the Bush Tax Cuts expire. He will re-frame the issue in some eloquent bullshit speech and Congress, as co-conspirator and facilitator for Wall St, will pass legislation redefining the middle-class as yacht-owning millionaires.
Pelosi’s classic bullshit protection maneuver of moving the goalposts is well described in a fantastic book: Believing Bullshit: How Not to Get Sucked into an Intellectual Black Hole by Stephen Law. Everyone should read this book. It basically describes what America has become—a nation of bullshit believers.
Didn’t Willard & his “good wife,” Anne, already declare that THEY, too, are Middle Class, and that somewhere many many years ago they were forced to live in what was, for them, a hovel (aka, probably a 3 bed/2 bath house perish the thought! the horror!).
So – eh? Call me crazy, but I’m thinking that now *everyone* is considered “middle class.” So – eh? Call me crazy again, but Obama won’t dare to raise taxes on all of *his* “middle class constituents” in the 1%.
Got it?? Hope so… get ready to bend over, yadda yadda yadda…
Where oh where did all the Pelosi supporters go? God forbid you ever say anything bad about her. I guess they’ve all abandoned the Lake at one point or another.
Thank You
…X 2
Still using G.W.Bush as a pinata when Obama has been POTUS since Jan.20,2009 is getting long in the tooth.
POTUS Obama and Obama’s WH “team” need to own what Obama/Obama WH has done,is doing,wants to do.
Nancy Pelosi showed what she is all about post the 2006 elections — see 2007 and what was not “on the table” and connect those dots with Pelosi.
POTUS Obama has liked/backed Bush/Cheney WH policies since Jan.20,2009.
Nancy Pelosi has been/was likely doing so since 2002 while claiming to be All D All the Time. Obama and Pelosi both claim to be All D All The Time while they play DINOs in/with politics they do/stand on. Both need to own what they do and likely should not be in WashingtonDC doing that.
We don’t need DINO D’s. Pelosi and Obama both being good examples why.
Pelosi is and has been a terrible, terrible leader and the time has long come and gone for her to go AWAY.
I did support her. Past tense. Then I shifted to ineffective. Now I think she’s part of the problem. The problem with Nancy is probably what a commentator wrote of her when she was up for Speaker: he wrote that she has no policy chops, “after five minutes, you’ve exhausted her knowledge of any subject.” He thought her a very poor choice for Speaker. I thought at the time he was being an old boys club fart, but now I think he was right on. Considering the pay to play leadership position system in Congress, Nancy was inevitable because she raised the most money. Almost makes you nostalgic for the seniority system it replaced.
Whoever runs against Nancy in her primary will get my careful consideration for material support.