December 13, 2010

The Lesson of the Tax Deal and the Deficit: Teach Your Kids Chinese

By Richard Baehr
Many Republicans  are trumpeting the compromise worked out with the Obama administration this week as a victory -- after two years of class warfare, the administration accepted a deal in which all of the 2001 and 2003 Bush tax cuts will be extended for two years.  While the estate tax rate will rise from zero in 2010, GOP leaders are also pleased with the $5-million exemption and 35% rate on amounts above that, which will be in effect for two years.  Many liberals in Congress are steamed and are threatening to vote against the bill; they hate that the top tax rate on high earners will not be raised, they believe the estate tax compromise is too generous, and they do not want to vote to affirm the Bush tax cuts.  The left's anger also makes the deal look like a victory for the right and the GOP.On the other hand, Charles Krauthammer thinks the GOP was rolled and that the deal will help Barack Obama in his reelection bid for the one job the president truly has always...(Read Full Article)