We now know where Harry Reid stands in the great divide between base-broadening, rate-lowering “tax reform” and the Chuck Schumer approach, which rejects lowering rates as a trap. As I fully expected, Reid sided with Schumer.
“He’s supportive of the Schumer approach, thinks it’s smart to put the goalposts where Schumer set them,” said a Senate Dem leadership aide, who confirmed that Reid questions a framework — like Simpson-Bowles — which cedes tax rate cuts for top earners at the outset.
Obviously, this is critical for the lame duck session and a hypothetical grand bargain, as Reid will be in the room on any deal. And he agrees with Schumer that allowing rates to go down, Bowles-Simpson style, based on a theory that the base would stay broad enough to increase revenue, just invites trouble.
What I did not expect is that the Obama Administration, supportive of the typical “tax reform” approach, would also side with Schumer – sort of.
Q: And one other subject — the fiscal cliff. Senator Schumer started some controversy yesterday when he said that cutting tax rates for top earners should not be part of any future negotiations about — over all the tax code. And the President has, in the past, been open to cutting tax rates on the highest earners as part of tax reform. So I wonder, does Schumer’s comments in any way reflect a hardening of the Democrats’ stance on this? Does the President still support the idea of cutting taxes — tax rates on top earners in a tax reform?
MR. CARNEY: Well, the President has made clear that he supports tax reform broadly, but what Senator Schumer is making is a very important point — that the wealthiest must pay their fair share in any balanced approach to reducing our deficit in a way that protects the middle class, seniors, and our ability to invest in education and innovation.
He’s making the very clear point that the President has made and others have made, that it is fanciful thinking to imagine that you can give more tax cuts to millionaires and billionaires and that the pixie dust of trickle-down economics will somehow erase any damage to the deficit or hold harmless the middle class. It is a mirage. It’s not realistic.
If it’s a mirage, it’s a mirage that the White House has had no problem inventing as it relates to the corporate tax rate, which they want to lower in exchange for loophole closures. But this harder line on so-called “tax reform” is very welcome, and Schumer appears to have not stepped out on his own.
Dick Durbin must be feeling lonely right about now.




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The DINO’s approach to governance reminds me of a pilot flying into bad weather; “let’s make a 360 and get the hell out of here.” Durban, like Reid and Schumer never held a position, ideal or ethics that wasn’t negotiable.
couldn’t happen to a nicer sellout. Remember, Durbin was going around mocking bleeding heart liberals and saying they were going to have to accept Social Security cuts. It was probably at the behest of the White House, but he’s still the one who was running around talking like he was auditioning to be Rush’s sidekick.
I have often thought that if the race tightened, Obama would get worried and have no choice but to reach out to the Democratic base. (The group he seems to disdain above all others.)
If elected, I have no doubt that he will do what he can to rip the safety net to shreds. But, at least, now thanks to Schumer, he may have to start talking about SS, medicare/medicaid cuts if only to score a few points with the base.
The question is, will the base be fooled? (How many times has he let us down? I have lost count.)
Down ticket Dems must be sweating bullets.
Yep, Romney isn’t the only politician who has an Etch-A-Sketch.
Beltway insiders thinks Congress may well just play “move the goalposts” to avoid the cliff until after the elections: http://www.govexec.com/oversight/2012/10/insiders-congress-will-punt-sequestration-few-months/58534/
Three weeks before an election, I think it’s hard to believe anything that the leadership of either party is saying.
After a bad week at the polls, it’s ten times as hard to believe anything that the leadership of this party is saying.
And come on, does anybody believe that the Dems won’t end up losing on both sides of this deal after talking tough at the beginning of the process? We go down this same road every single time.
Gah. Fool me once…
Yes! I have never forgiven Durbin for that – and hope we have a progressive challenger come 2014. I gave up calling his office — his staff is ignorant of most issues I try to discuss with them and him flogging the latest “grand bargain” attempts shows he has lost touch with his base.
We go down this same road every single time..
Both parties should be viewed as dysfunctional religions.
Durbin used to be a pretty progressive guy, even voted against the Iraq war/resolution in 2002 (and he was up for re-election that year as well). Now he’s all DLC/DINO and mocking his own base (like Obama).
Hope he does get a primary challenge and loses.
I think we all know that the only reason they are saying this is because the election is coming up, and if they say yes it makes sense to lower the rates and close the loopholes then they would be agreeing with Mitt Romney.
And after the election is over this is exactly what they will do.
In 2008, Obama ran on raising taxes for everyone making over $250,000.
He did nothing about that, until 2010, when he pushed through the Obama tax cuts.
Now he gets to run on raising taxes for the rich again.
And we’re taking it seriously again?
Before I cheer (or hiss) anyone’s alleged plan this time, I think I’ll wait and see what action, if any, actually gets taken in November and December.
(Convenient how we don’t reach the edge of the financial cliff until after the election, isn’t it?)
Are they really dysfunctional? Only if you believe what they say or assume they are really trying to do what you want them to do.
If we measure people by their actions, though, they have been jaw-droppingly effective at:
(1) feathering their own nests and those of family members, including getting themselves re-elected and getting very high-paying jobs after they leave “public service;”
(2) weeding liberals out of politics, either by conversion to New Democrats or by not allowing liberals to run in the first place or several other means it would take too long to detail;
(3) transferring wealth to the 1%, which 1%, at some point, includes most of them.