July 28, 2011


Democrats Will Get Their Turn When Bush Tax Cuts Expire

Because of a political dynamic "that lends itself to a ransom," Ezra Klein says Democrats will ultimately lose the fight on the debt ceiling because they can't allow the government to default.

But their negotiating leverage will be reversed when the Bush tax cuts expire just before the end of President Obama's current term.

"This scenario is the inverse of the current debt-ceiling debate, in which inaction will lead to an outcome -- a government default -- that Democrats can't stomach and Republicans think they can... Next year's deadline on the Bush tax cuts offers Democrats their only chance to negotiate from a superior strategic position. Republicans will still be able to refuse to raise taxes. But if they do, it won't matter."










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