“‘You talk about completely detached from reality, that’s this place,’ said Sen. Kent Conrad (N.D.), the ranking Democrat on the Senate Budget Committee.” Throwing caution to the wind despite their imploding poll numbers and the ballooning deficit, the White House and congressional Republicans craft a deal to extend Dubya’s dividend and capital gains tax breaks for the wealthy. Still, the “compromise measure falls well short of making Bush’s first-term tax cuts permanent. Instead, all of the major tax cuts passed in 2001 and 2003 would expire at the end of 2010.“
Update: The WP dissects the GOP’s tax gamesmanship: “If the deal wins congressional approval, every major tax cut passed in Bush’s first term will be set to expire on the same day five years from now. [Jan. 1, 2011.] At that moment, politicians would face a choice: Either allow taxes to rise suddenly and sharply on everyone who pays income taxes, is married, has children, holds stocks and bonds, or expects a large inheritance, or impose mounting budget deficits on the government far into the future, according to projections by the nonpartisan Congressional Budget Office.”