Thaindian News

Dec 6 (THAINDIAN NEWS) On Saturday, two Democratic proposals which would have extended the Bush Era tax cuts for all except for those in the highest income levels were blocked by the Senate. This will essentially force the Democratic majority to form a compromise with the Republican Party, or else they will risk increasing taxes of almost all American by the end of the year.

The Republicans have two different things in their favor. According to their argument, with the economy in the state it is in, the tax increase would be giving the wrong message. They then managed to back up their argument,and force the hands of the Democratic party by blocking the Bush Era tax cuts. Essentially, if the Democratic Party lets the tax cuts expire the end of the year, then they are increasing taxes, according to the Republicans.

It is also on the side of the Republicans that the temporary extension of the unemployment insurance benefits has also ended. Now, in exchange for the tax cut renewal, the Republicans have another bargaining chip with the White House. They could agree to extending unemployment if the Democrats will agree to renewing the tax cuts. The presidents seems as though he may be ready to make a deal, and an announcement to that effect is expected later in the week.

The Democrats, on the other hand, are suffering, since they were so confident at one time that their “no tax cuts for the wealthy” message was a winner. They were also sure that the Republicans were going to have to pay for opposing that extension. Unfortunately for the Democrats, neither of those have come to pass, and Democrats are livid at having their hand forced.