“We
need to stop forcing Republicans to face the grim choice between
blocking a tax cut and fighting against more entitlement and deficit
spending.”
There are two inexorable political realities at this
point: the payroll tax cut must be extended and those who block it will
incur a needless political reprisal. To that end, Republicans must
outflank the Democrats on the payroll tax cut, while dealing with the
entitlement extensions in another bill.As conservatives, we all agree that a short-term payroll tax holiday – without Social Security reform – is inane policy, both in the realm of economic growth and entitlement reform. We should have either categorically opposed a Keynesian stimulus holiday by calling out the Democrats for their hypocrisy on Social Security, or we should have outflanked the Democrats and called for a permanent diversion of the payroll tax to private retirement accounts. Unfortunately, the ship already sailed on that a long time ago. As the Wall Street Journal noted,” if Republicans didn't want to extend the payroll tax cut on the merits, then they should have put together a strategy and the arguments for defeating it and explained why.”
Republican leaders already agreed to another "holiday," albeit with the condition that it be paid for. With less than two weeks to go before its expiration and with a universal expectation that it will be extended, Republicans must pass a clean extension of the payroll tax cut. Anything less would enable the Democrats to get to the right of Republicans on tax cutting.
Last week, Republicans secured superior leverage by becoming the first body to actually pass an extension, while the Senate was unable to pass its own bill. However, Mitch McConnell launched a broadside on his party by agreeing to a lousy two month extension – one that is totally unworkable in the real world. Nevertheless, its 89-10 margin of support gave Democrats all the leverage they needed. Now House Republicans are begging Democrats to join them in a conference agreement to iron out the discrepancies between the two bodies. But this is only playing into the narrative that Republicans are the ones who are obstructing the “only” plan to extend the tax cut. House leaders are justified in their outrage towards the Senate, but we need to focus on current strategy. [We can talk about canning McConnell another time.] Their current strategy of asking for a conference will get them nowhere and will only hurt them.
This is why, for the last time, I call on House Republicans to pass a clean 12-month extension without any strings attached; no riders, reforms, offsets, and extraneous extensions attached. That will totally put the ball back in the Democrats’ court, forcing them to support or reject the only workable extension plan. What about the offsets and Keystone pipeline provision?
Here’s the kicker: