From my latest article in The Atlantic:
Given that our structural deficit overwhelmingly reflects a spending problem and not a revenue problem, it is unfortunate that the Democrats have succeeded in making the opening battle in the fiscal cliff a fight about tax rates. But succeed they have. We won’t have a serious debate about spending before we’ve determined the marginal income tax rates paid by the top two percent of Americans.
Though some Republican members of the House and Senate have signaled a willingness to raise tax revenue and even tax rates, it remains far from clear whether the Republicans will agree to President Obama’s demand that rates on the highest-income 2% of Americans increase. The Republicans are wrong to be so opposed to raising rates. In fact, they should unequivocally accept rate increases.
It has been said that a conservative is a liberal who has been mugged by reality. Conservatives risk acting like liberals if they do not acknowledge this simple reality: Tax rates are going up. Either we fall off the cliff and the rates return to where they were under President Clinton, or we cut a deal that keeps rates lower than they were in the 1990s.
It’s really just that simple.
Read the rest here.