The Message Republicans didn’t hear

[PrMaine]

4. Confusion

There seem to be two different issues that are being confused here. The first is the issue of the Bush tax cuts and the fact that they will expire - for all income, not just for income over $250,000 a year - at the end of the year. Yes, Democrats should just let that happen and yes, they should vote with Republicans if they offer a bill to extend those cuts on incomes below $250,000. In 2013 those tax cuts on lower incomes can be put in place once the Senate modifies their filibuster rule.

The second issue is what is referred to as the fiscal cliff. That issue concerns the array of spending cuts that Congress agreed to in the Budget Control Act of 2011. This bill was enacted as a means of forcing the two sides to deal with the budget stalemate last year when Republicans refused to accept tax increases and Democrats refused to accept spending cuts unless there were tax increases. Again, Democrats will be in a stronger position next year and so Republicans may well be more inclined to negotiate than they have been.