In sight: a compromise

In a sure sign that we’re living in the end times, a front-page headline appeared in this paper on Wednesday that read, “Congress panel hit two-party tax deal.”

What? Bipartisanship? Hades has indeed frozen over. (And considering Arkansas’ weather lately, we wouldn’t be a bit surprised.)

It appears that Sen. Ron Wyden, a Democrat from Oregon, and Rep. Jason Smith, a Republican from Missouri, are in lockstep in their desire to provide tax relief, and soon.

What kind of tax relief?

There are a few changes in mind, but it all adds up to $78 billion, which you can read about on the front page of Wednesday’s paper. It would be “paid for” (it wouldn’t add to the $34 trillion debt) by more quickly ending a tax break that Congress approved during the pandemic to keep employees on their payrolls.

But that’s not what’s important. After all, tax cuts are like pizzas. Even when they’re not exactly the way you like it, they’re still pretty good.

What’s newsworthy is the fact that something—anything—is being done in a bipartisan way in this era of political dysfunction.

First, Ron Wyden and Jason Smith are the chairmen of the Senate Finance Committee and the House Ways and Means Committee, respectively. Reportedly, the two have been negotiating these items for months with a goal of enacting the changes by Jan. 29, when the IRS starts processing tax returns.

It’s a quick turnaround for a Congress that has shown a remarkable ability to draw a paycheck while getting nothing done. Congress already has Big Things to deal with, like avoiding a government shutdown and figuring out how much support the U.S. will provide for Israel and Ukraine. And let’s not forget that America is screaming for something to be done with the border.

One strategy is to attach the cuts to a must-pass budget bill. While that would have some merit in a different era, in this one, the more ideas that are pushed forward, the better chance those will get shot down. The last thing that’s needed is a legislative strategy that might turn the new tax policy into collateral damage in the larger political war(s).

If that’s not enough, bipartisanship can also be displayed in opposition, and the ranking members of these committees are not yet on board.

Predictably, Democrats who object believe more relief needs to be provided for families and children, while hard-right Republicans object on the basis of, well … the sake of objection, we think.

What’s truly at play here is that it’s an election year. And what self-respecting politician wouldn’t want to go home and campaign on the recent tax cuts for which he’s just voted? In the past, the answer to that would be zero. However, it’s 2024, so anything’s possible.

“I think the chances of this getting done, at least during the January period, is pretty nil,” said Sen. Chuck Grassley (R-Iowa), noting that House Republican leaders won’t want to attach the package to spending bills that already face dissent from the far right.

Senator Grassley is far closer to the action than we are, and he knows more about whether something like this can get done in the short-term, so we’ll regrettably assume that it probably won’t.

However, we’ve got to give credit to anyone who attempts to do anything in a bipartisan way in this political climate.