In this post we will show an example of a true compromise, which is not a capitulation.
The issue is whether or not to allow tax cuts for the rich (which the Republican led congress of the Bush II years passed) expire and fade away.
The Republicans themselves allowed the law to include a "sunset provision" whereby those tax bonuses would cease to be law in December of this year, 2010.
Now, while talking about federal deficits out of one side of their mouths, Republicans want to extend the tax cuts for those upper 2% out of the other side of their mouths, but Obama has taken a stand:
First, the President underscored that middle-class families need permanent tax relief, so Congress should permanently extend tax cuts for all families making less than $250,000 a year – 98 percent of the American people. And second, he noted that, with the nation’s challenging fiscal situation, the country simply cannot afford to borrow another $700 billion on permanent tax cuts for millionaires and billionaires.(White House). That borrowed money ($700,000,000,000) would come from China then go to the upper 2% wealthy who do not need it, then, the taxpayers would pay it back to China on behalf of the rich upper 2%, with interest.
Not a good deal, it would be a capitulation to bad economic policy, as well as being contradictory to decreasing the federal budget deficit.
The compromise is to extend the cuts to Americans who make less than $250,000 annually, which is 98% of the populace, but not to the upper 2%.
Like Kristof said in the NY Times today, we are already a banana republic, so we need to lose the imbalance.
Stopping and changing direction by letting the bizarre tax cuts for the plutocracy cease is the way it should be done.