President Barack Obama reached agreement Monday with Republican leaders in Congress on a broad tax package that would extend the Bush-era income tax cuts for two years, reduce worker payroll taxes for one year and give more favorable treatment to business investments.
Jennifer Rubin comments on the news:
There really is no other way to say it: the Republicans won, the liberal Democrats lost, and the president sided with the Republicans. The subject, of course, is an agreement to extend all the Bush tax cuts. The president tonight announced a "bipartisan framework" for agreement on, among other things, to extend the Bush tax cuts for two years. A Republican House aide tells me tonight it is "a damn good deal." And so it is, from the perspective of conservatives.
My comments: If they had not extended the capital gains rates, there would have been a huge stock crash in the next couple of weeks as everyone sold off. This was a reasonably good deal for the Republicans, made to look better by the gnashing of teeth on the left. The truth is that it merely avoids making things worse, it doesn't necessarily help much. But it's probably the best we could hope for from the Lame-Pelosi congress.