Republicans seemingly broke with their anti-tax orthodoxy last night when they offered Democrats $300 billion in revenue increases over the next decade, largely from reducing tax deductions on things like mortgage payments. But there was a catch: In return, Republicans want to extend the Bush tax cuts, which are currently set to expire in January 2013. The extension would cost $4 trillion over the next decade. Democrats refused the GOP offer, saying it would increase the deficit over the next ten years rather than reduce it. Strategically, the Republican offer made perfect sense; they came across as willing to compromise and can now accuse Democrats of blocking a deal. With two weeks until their deadline, the Super Committee has made little progress.
The Latest
- Republicans offer tax deal to break debt impasse; Democrats dismiss it Washington Post
- Ohio Turns Back a Law Limiting Unions' Rights The New York Times
- Occupy Movement Inspires Unions to Embrace Bold Tactics The New York Times
- Judge OKs $410M Settlement for Bank of America ABC News
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About the Author
Pema Levy is an assistant editor at The American Prospect.
