Commentary Magazine


Contentions

Democrats Balk at Raising Taxes in a Recession

It might have something to do with Obama’s falling poll numbers. Maybe they simply can’t bring themselves to defend the lunacy of raising taxes when the prospect of a double-dip recession is looming. But at least a few Senate Democrats are talking sense:

Two more Senate Democrats called for extending tax cuts for all earners—including those with the highest incomes—in what appears to be a breakdown of the party’s consensus on the how to handle the expiration of Bush-era tax cuts.

Sen. Kent Conrad (D., N.D.) said in an interview Wednesday that Congress shouldn’t allow taxes on the wealthy to rise until the economy is on a sounder footing.

Sen. Ben Nelson (D., Neb.) said through a spokesman that he also supported extending all the expiring tax cuts for now, adding that he wanted to offset the impact on federal deficits as much as possible. … “As a general rule, you don’t want to be cutting spending or raising taxes in the midst of a downturn,” Mr. Conrad said. “We know that very soon we’ve got to pivot and focus on the deficit. But it probably is too soon to cut spending or raise taxes.”

Yeah, as a general rule you probably don’t want to pass a massive health-care bill with oodles of new taxes and mandates “in the midst of a downturn” either. Nevertheless, these two plus Sen. Evan Bayh are “a departure from what appeared to be an emerging unified Democratic stance.” Maybe not so unified after all.

Remember Rep. Joe Sestak bemoaning the plight of small businesses the other day? Hmm, maybe he could join the reality-based Democrats. After all, those small businesses are the ones that will be hit if the top rate rises to 39.6%. (“Republicans and many business groups favor extending all the breaks, contending that increasing tax rates will hit small businesses hard.”) But I haven’t heard any of that from him. And really, is a guy who voted with Nancy Pelosi 97.8 percent of the time the lawmaker who is going to break with liberal orthodoxy? Not likely.