So far, President Obama has resisted extending the Bush tax cut to the wealthiest 2 percent. Given the post-midterms realities, he should compromise on 1 percent.
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Expect the President to be under more pressure to give in to Republican demands that the Bush tax cut be extended to everyone — not just the bottom 98 percent but also the the top 2 percent, earning over $250K.
He should respond by offering this olive branch: Extend the Bush tax cuts to the bottom 99 percent — to families earning less than half a million dollars.
But not to the top 1 percent.
The top 1 percent now gets almost a quarter of the nation’s total income — a larger share than at any time since the 1920s. The top 1 percent have also received about 40 percent of the benefits of the Bush tax cuts.
The “Not for the Top 1 Percent” olive branch will draw a clear line in the sand. If Republicans won’t accept the offer, let them threaten to raise everyone else’s taxes in order to get a sweet deal for their patrons at the very top.
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