Should Democrats compromise on tax cuts?

Republicans insist that everyone — including the rich — should keep their Bush era tax cuts. After his party’s midterm drubbing, is it time for Obama back down?

Republican leaders, including Eric Cantor who is expected to become the House majority leader, say they will insist on extending tax cuts for the wealthy.
(Image credit: Corbis)

In what could be a sign of looming gridlock, House Republican leaders are warning that they have no plans to compromise with Democrats on extending the Bush tax cuts for all. President Obama says he's "open" to discussion, but has made it clear he wants to extend the breaks for the middle class while killing those for the wealthiest 2 percent. Should the president compromise now that the GOP has taken the House — or nix tax cuts for the rich while he has the chance?

Democrats lost — they should give in: The election was a referendum on Obama’s policies, says Rob Port at Say Anything Blog, and the Democrats got thumped. Now they should drop their "class warfare" rhetoric and renew the tax cuts for all. "It’s the rich who invest and own businesses and employ the most people. Taking from them hurts us all." Rather than tax more, the government should spend less.

“Obama: We Can’t Afford To Let Americans Keep More Of Their Money"

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Obama should stand his ground: The president is right and shouldn't cave, says Joel Mathis at Cup o' Joel. Extending the tax cuts for the middle class is good for the economy, since those taxpayers will "spend the money." The rich — couples making more than $250,000-a-year — "are more likely to save the extra dough." That’s good for them, but bad for the economy. If Republicans resist, it will look like they're holding the middle class "hostage" for the sake of the wealthy.

"Obama should hold steady on Bush tax cuts"

Compromise is a two-way street: Obama should offer an "olive branch," says Robert Reich in The Christian Science Monitor, but not agree to the GOP's demands. The president should offer to "extend the Bush tax cuts to the bottom 99 percent," but not to the wealthiest 1 percent, who have benefited from 40 percent of the Bush tax cuts. This will "draw a clear line in the sand."

"Extend the Bush tax cut to the bottom 99 percent, but not the top 1 percent"

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