Democrats’ Tax Dilemma

Where are we on an extension of the Bush tax cuts? It’s hard to know, given that the Democrats have no game plan at this point:

Obama favors renewing the tax cuts only for those at or below those level, saying the nation cannot afford to renew them for wealthier Americans.

The lack of agreement is, at bottom, a sign of the mistrust that now characterizes the relationship between Obama and what is left of his Democratic allies in the House and Senate:

“A lot of our guys, the progressives, don’t want to extend these tax cuts for anyone,” said a senior House Democratic aide. “They never liked them in the first place.” The aide said some Democrats are now wary of Obama, who convinced them to overhaul the U.S. healthcare system — a landmark achievement that backfired and hurt them with voters. “Our guys aren’t sure what comes next. Will Obama help them in 2012, or will just be focused on getting himself re-elected?” the aide said.

The liberal pro-tax-hike Democrats can posture all they like, but they don’t seem to have the votes to soak the rich. Sen. Joe Lieberman, the perennial voice of sanity in the Senate, patiently explains to his colleagues that although they might want to raise taxes on the “rich” — investors, small businesses, employers — the fact remains that “the votes are not there to do that.”

Oh, in that case, they might simply kick the can down the road and let the GOP extend all the Bush tax cuts. Well, that wouldn’t make much sense, allowing their opponents to claim credit for keeping voters’ taxes from going up. But these days, the Dems seem to specialize in not making much sense. So don’t bet against their doing just that.