Bum's Bluff

When a laundry list becomes a compromise

I was sceptical when I first heard about the proposed tax rebate/economic stimulus package that the Bush Administration and House leaders have hammered out. I still recall the "tax rebate" we received in Bush's first term -- not so much a rebate as it was an involuntary advance payment that would be deducted from your final refund (or added to your liability).

This seems different. The funding is not based on future tax revenues (which would indicate another advance refund schem), but rather is from increased federal borrowing. While growing the national debt has its own issues, at least this package seems to be what is advertised.

The fact that Bush negotiators have been able to quickly reach this deal with Speaker Pelosi (D) and Minority Leader Boehner (R) is an accomplishment in itself. Both sides dropped major provisions that could easily have been deal breakers. For Dems it was dropping proposals to increase food stamp reimbursements and extend Unemployment Insurance beyond 26 weeks. For the GOP side, it was allowing workers who don't earn enough to owe taxes to still receive the rebate. Both sides had to move a long way to reach the middle.

The litmus test is that neither side appears overly happy with the final package -- a sure sign that a decent compromise has been reached. Interestly though, it is the two leading Democratic Presidential hopefuls that seem the most critical of the plan. I thought Clinton was the great deal broker and Obama was the great bipartisan compromiser?

posted by Walton @ 5:58 AM