President Obama is meeting with Republican Congressional leaders today, ostensibly to work out a game plan for the lame duck session. Or maybe it’s just crab cakes day in the White House kitchen, and who wants to miss out on that, yanno?

The two big issues on the agenda are the extension of unemployment benefits, which expire after today, and the extension of the Bush tax cuts, which expire on December 31. On the tax cut piece, the argument is limited to whether the tax cut from 39% to 36%, which applies to the highest tax bracket or about 2% of the population, should be extended. Everyone agrees on extending tax cuts for the other 98% of taxpayers.

The policy dilemma is that Republicans have pledged both to cut the deficit (which calls for letting the tax cuts expire) and to lower taxes (which, of course, calls for extending the tax cuts). President Obama should use that dilemma to his — and the economy’s — advantage today. He should present the Republicans with a public statement that says this:

“We are pleased to announce we have reached an agreement with the President to extend the tax cuts enacted earlier this decade for all Americans. While we recognize that the economy has rebounded these past two years, we also know that it is a fragile recovery. We have a responsibility to preserve and expand that recovery, so that the private sector can create more desperately needed jobs in the months to come. Extending these tax cuts for all Americans is an essential step in promoting that recovery.
“At the same time, we are troubled by the impact of extending these tax cuts on the federal deficit. Our agreement with the president today will add more than $2 trillion to our national debt over the coming years. We ask the American people to understand that what is necessary to solve today’s jobs crisis may increase federal deficits in the short run. We pledge to work with the president to find long term solutions to our fiscal crisis, solutions that bring government spending to a sustainable level without disrupting the ongoing recovery.”

If the Congressional Republicans agree to make, and adhere to, this statement, couldn’t the president go along? And wouldn’t that be good for America?

Advertisements