Calling Mitt Romney stupid
hasn’t made other Republicans any smarter. John Boehner is already making the
same mistakes.
For a while, the House
Speaker was careful to match Obama’s explicit call for higher tax rates for the
top 2% with pleasing generalities: Please, higher revenues not higher tax rates; and, yes, special interests should give up their loopholes and
deductions.
This approach united
Republicans. It would likely work as firm policy in another presidential
television debate. However, it didn’t go far enough as a compromise formula for
actually legislating a package of tax changes with Obama. And Republicans
insist that the voters want them to lead too. So Boehner, in a letter to the President
last week, went further: He’d agree to raise $800 billion by cutting the
deductions and loopholes of the “same people” Obama would tax at higher rates.
If you insist on negotiating,
not just campaigning in public, you have to get specific. However, Boehner has
bought himself a world of trouble. The reaction to what he’s proposed, in fact,
may be enough to force him to work within the revenue formula Obama has long
proposed.
Konrad Yakabuski
in today’s Globe and Mail neatly
summarizes Obama’s response and, more importantly, the alarm of the unintended,
lovable victims of Boehner's counter-proposal: America’s charities and its
fragile housing recovery.
“The
United Way and other non-profit organizations held a 'Hill Day' on Wednesday to
press members of Congress not to change the tax deduction for the $200-billion
Americans donate to charities each year.
“The
deduction costs the federal treasury more than $50-billion in foregone tax
revenue annually. Charities worry donations would dry up without it.”
Boehner can’t find his
$800 billion without taking away that $50 billion of offsetting tax relief for
those who give most generously to charities.
Yet it’s Republican
orthodoxy—and widely accepted—that significantly raising taxes on work and consumer
activities alters what taxpayers do with their time and money. Raise marginal income
tax rates too high and many will stay home longer and putter in the basement.
Make gasoline considerably more expensive and they’ll drive less.
It defies faith and common
sense to believe that taking away $50 billion in targeted tax relief for
charitable giving will not materially dampen support for charities.
If Boehner thinks the rich
will carry on as if nothing happened, then what’s the problem with Obama’s modest
across-the-board increase in the top tax rates on their incomes? They’ll lay
off their workers while giving more to charity?
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