I never thought I would see the day, but Democrats are outmaneuvering Republicans on a tax cut — the payroll tax cut. They want an extension again. Let’s understand that the Democrats don’t serious want to help the working-class. They are admitting the working-class is no longer part of their coalition.But they do want to score points against the GOP and, like clock work, the GOP is throwing the ball into the Democrats’ basket for them.Republicans are arguing that another extension will (A) further undermine the solvency of social security and (B) not actually be pro-growth because it leaves uncertainty in the system over whether or not it will happen again.Right now the Democrats are out flanking the Republicans on the payroll tax cut. It’s like the FEMA disaster stuff. Right as images are on every television in America showing houses destroyed by hurricanes, the GOP decides it needs to offset FEMA spending with cuts or else.I have never understood the GOP’s willingness to stand on principle only during suicide missions.The Republican Party is the party of tax cuts. The Republican party believes that temporary tax cuts subject to congressional renewal schemes are not pro-growth because of the uncertainty they leave.So instead of going along with the Democrats’ efforts to temporarily extend the payroll tax cuts, the GOP should make them permanent. In fact, the House of Representatives should pass a very clean piece of legislation doing nothing but making the payroll tax cut permanent.Just do it. The Democrats want to nibble away at the GOP on the tax cut issue. Force feed them a permanent cut.
“But wait,” you say. “That will undermine the solvency of social security.”So.If you really think there is a social security trust fund and it is solvent, you really need a reality check.A permanent tax cut is pro-growth in a way temporary tax cuts are not. The real fight here will be on unemployment benefits. This fight is just a distraction, but one the GOP will get hung up on. So go big or go home.At the same time, a permanent cut would accelerate the time table at which social security must absolutely be fixed. The GOP will always support the temporary tax cut because they cannot stand for the Democrats to outflank them on that issue. So they should instead one up the Democrats and fight to make the cut permanent.That will put the Democrats on their proper and natural side — opposing tax cuts.