The New York Times reports that Senate Democrats are facing an agonizing choice - they have to find a way to raise at least $50 billion in new taxes, or undermine their "paygo" rule. The dilemma comes about because of the Alternative Minimum Tax. Democrats and Republicans are anxious to prevent the AMT from adversely affecting about 23 million households. It will be fascinating to watch the Dems try to deal with this.
According to Robert Novak, this week reform-minded conservative Republicans will introduce the most sweeping tax plan since Jack Kemp's three decades ago. Their idea would establish a radically simplified, flatter tax for an estimated 90 percent to 95 percent of all income tax filers.
It appears from the top Republican pollsters that the swing voters, especially the suburban "security moms" still hold Republicans in very low regard. And even worse, they don't much like what the Republicans are saying about taxes. Stephen Moore, in the op-ed written for the Wall Street Journal doesn't agree with that. He believes that the GOP message on taxes needs a makeover - maybe even a radical one. According to Mr. Moore, most voters are unpersuaded by the Republican message that the Bush tax cuts were a resounding success that pumped the economy back to life. Two silver linings for the GOP: when politicians say they are only going to soak the rich, most people fear their own tax bills will go up. The other silver lining- The Democrat's tax happy policies are an even less palatable message to voters.
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