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What’s wrong with the Democrats when it comes to budget negotiations?

July 7, 2011

On Tuesday I blasted Congressional Republicans for not being gracious winners when it comes to resolving the ongoing budget/deficit/debt ceiling battles.

Today it's the Democrats' turn to catch heat.

Shortly after Obama took office, progressives and the more liberal wing of the Democratic Party have been asking what's the deal? It seems to many that the prez has abdicated their ideals and programs in an effort to play nice with the loyal opposition.

Or, as the Washington Post's Ezra Klein notes in his blog today:

"Democrats control the White House and the Senate, Obama is the most popular national political figure, a balanced approach to deficit reduction outpolls plans made entirely of spending cuts, and yet Democrats are still offering recalcitrant Republicans the deal of the century rather than taking to the ramparts. What's wrong with them?"

That question is put into political perspective via one bar graph displaying the deficit-reduction deals passed by three former presidents and proposed by the current Oval Office resident:

Taxes-vs-spending-cuts_RR-GHWB-BC-BO  Data courtesy Center on Budget and Policy Priorities

Hmmm. So Ronald Reagan, the president idolized by the GOP, the man who made hating government a national political sport, saw significantly more tax increases on his watch than a trio of his successors.

Ain't life and politics funny, and sad, sometimes?

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You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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