2012 Policy: Democratic Tax Rebate

No matter how much they impacted the deficit (roughly 30% of the annual deficit by Congressional Budget Office estimates, or $700 Billion over two years), no matter how much American's didn't want all of them to be extended (see recent Pew poll), no matter how disproportionately they benefit the wealthy, the Bush tax cuts--including those for millionaires and billionaires--have been extended for two more years.

It's a done deal for now. However, I have a suggestion that would help the Democrats politically in 2012 and, more importantly, would help ensure an end to the huge tax cuts for the wealthy. The extended Bush tax cuts result in about $3,000 annually per person across the county. This is an average of >$100,000 annually for the richest Americans and less than $3,000 for much of the middle and lower class (see link for details).

When 2012 rolls around, this is what the Democrats should propose as legislation and promise the American people in campaigns: every American, rich or poor, will get a tax rebate check of $2,500 for each of the next two years. Not only will this evenly spread the benefit across all Americans, but it will also cut the deficit by about $150 Billion dollars! That's right, much of the middle and lower class will get more money and we will still reduce the deficit. That's because the wealthy won't disproportionately benefit this time around.

Republicans will hate this proposal, but it would be a huge winner with the American people. Obama and congressional Dems should go to the people with this proposal in 2012. It will be a winner on numerous accounts.