Obama should compromise on tax rates for highest earners

[WillK]

Why not just go over the fiscal cliff and then in early 2013 reinstate the tax cuts for those making less than $250,000?

Because it would raise taxes by $3,700 on middle class families, send the economy back into recession, cost hundreds of thousands of jobs just before/during the Christmas holidays, result in another credit downgrade, and poison relations with Congress. All of these are very bad things. My fellow Democrats, get our heads out of the sand.

It wont take effect until after the New Years, so the claim about the impact occurring before/during Christmas holidays is rubbish.   Relations are already poisoned with Congress.  So no problem there. 

[WillK]

... Another alternative, the personal deductions cap, still hits upper-income earners almost exclusively, and actually will likely raise more money--plus might hold out opportunities for better economic growth, a possibility which also would benefit the middle-class, many of whom are now unemployed.

When I read the above, my reaction is to ask how the kool aid tastes.
A deduction cap will neither raise more revenue nor create better opportunities for economic growth. 

[WillK]

Let's face it, it's not worth all that much. Restoring Clinton-era rates for those making more than $200,000-$250,000 per year only raises $70 billion to $80 billion a year. Capping deductions, raising the capital gains tax while eliminating the carried interest loophole, or raising the estate tax could are other ways to raise revenues from the wealthy. So if this is Boehner's one non-negotiable item, then I would say Obama should be flexible on it, despite his veto threat. What say you all?

I think it would be healthier to keep capital gains taxes lower.

Healthier for whom?    The 1%. -  sure.   The USA - not so much.