Is there any hope of bringing Republicans and Democrats together to tackle the tough fiscal problems that the US faces? Believe it or not, I think there is!
The Heritage Blog produced a great info graphic comparing the recent budget plans from the House and the Senate:
It’s obvious these two plans are so far apart that neither has any hope of clearing both houses of Congress and if we had a President who was interesting in solving our problems, he’d call them together to reach a compromise. But we know that won’t happen…….But I think there is a chance for a compromise that would be very meaningful for our country.
But before I get to that, let’s go over a few givens that most people would accept as facts:
1) Obama and the Democrats have a desire to increase tax revenues via raising income taxes on the wealthy.
2) A vast majority of people who voted for Obama and continue to support Democratic candidates are big supporters of raising taxes on the wealthy.
3) Democrats believe that through higher taxes on the wealthy, the poor will have more money (i.e. handouts) from the government and their wealth will rise.
5) Obamacare will end up costing our Federal Government way more that was first estimated.
6) Obamacare will end up costing American citizens way more than was first estimated.
Given those knows facts, I have a radical compromise plan.
The Republicans in the House and Senate should agree to pass legislation that raises income tax rate (to levels set forth by the Democrats) on those making over $400,000 if (and only if) Obama and the Democrats in the House and Senate agree to repeal Obamacare.
What? Have you lost your mind? Raising taxes on the wealthy will be harmful for the economy and won’t raise tax revenue as history has shown us. Yes I know that.
Obama would never repeal his signature achievement of his presidency, not even for higher taxes on the wealthy! Yes I know that too.
Both of those critiques are true but think of the messaging opportunity this would give the Republicans.
Leftists scream about income inequality and in a sense that is why people like Massachusetts’ Elizabeth Warren got elected to the US Senate. Leftists have a soft spot for taxing the rich and they’ll thrown logic out the window if they have a chance to close the deal on higher tax rates for the evil 1%. Once they think this is a possibility, they’ll be like sharks swimming in a pool of blood – they’ll ignore everything else to accomplish this one overriding goal! And you can count on them applying the heat to Obama and Reid to get it done.
Republicans can easily point to all the harm that Obamacare is already causing and then say we need to repeal it and then address healthcare reform piecemeal instead of a grand plan that was hopelessly flawed. It can be sold as a win for the Democrats because they are abandoning a program that isn’t even implemented yet in favor of immediate tax rate increases on the wealthy. The Democratic base will think they’ll be getting instant handouts while abandoning future promises of better healthcare that more than likely wouldn’t have materialized in the first place.
Obama and the Democrats would be forced to defend Obamacare over the holy grail of Leftists ideology – taxing the rich. I don’t think they can do it.
For a few years we’d suffer under the high income tax rates on the wealthy but at least we’d be spared the evils of Obamacare and once we win the White House in 2016 and hopefully take control of the Senate as well, then we can come to the country’s rescue and show how these higher income tax rates didn’t really translate into more tax revenue. Of course we’d repeal those tax rates and return them to 2012 levels….for the good of the country.
What do you think? Am I crazy?