As Krugman says, "there is a case for the tax cut deal, as the best of a very bad situation."
I understand that a lot of people are pissed about breaks for the wealthy, as well as the smoke-filled room way of cutting the deal, and the administration's pattern of failing to fight for what's right, then lashing out at us--I'm right there with ya. I understand Obama's frustration, too, as he has accomplished some good things but seems unable to sell them.
Perhaps all of us should consider our own roles in the problem and how we can best regroup to be more effective going forward.
Regardless, out of the sausage making, which is never pretty, we're getting a better deal than I'd ever hoped for (75% of the benefits go to regular Americans). Ezra notes:
The GOP got around $95 billion in tax cuts for wealthy Americans and $30 billion in estate tax cuts. Democrats got $120 billion in payroll-tax cuts, $40 billion in refundable tax credits (Earned Income Tax Credit, Child Tax Credit and education tax credits), $56 billion in unemployment insurance, and, depending on how you count it, about $180 billion (two-year cost) or $30 billion (10-year cost) in new tax incentives for businesses to invest...If you're worried about stimulus, joblessness and the working poor, this is probably a better deal than you thought you were going to get.
And that's where I sit, fundamentally concurring with the CBPP. It's a shit sandwich, but we really need to look at the good things in the deal and build on those foundations.
I don't agree with my Congressional delegation on this, but I get where they're coming from and applaud their sticking to principle and promising to fight this in both the House and Senate. I'm just a bit more concerned about the millions of unemployed and working class folks who will benefit from the UI extension and the payroll tax holiday, both of which also happen to be quite stimulative.
For most of the last year as the Catfood Commission has been screaming about the deficit, we on the left have been suggesting that it doesn't matter right now, that jobs and the economy are more important, and the vast majority of Americans agree with us. So the handwringing about the budget busting extension of Bush's tax cuts strikes me as a bit disingenuous.
So many people, right and left, are acting as though this is a complete GOP win and complete Obama capitulation. If we go along with that frame, yup, we totally lose.
Alternately, we can celebrate the important components that are inherently beneficial to people we're trying to help and to the economy overall, frame that as a victory when it looked like nothing good was going to happen before the GOP takes over the House, and work hard to improve the deal (e.g., eliminating the FICA cap, extending UI for the 99ers). Oh, when ostensible allies make observations about the deal and suggestions about action, perhaps we can also not cast aspersions on them when they have a different take?
ntodd