The tax deal -- voted down by the Democrats in the House

Congratulations to the House Democrats. They voted today in their caucus not to allow the tax compromise deal worked out by the President to come to the floor of the House. Since the Democrats remain in absolute control until the end of this month, they have the power to keep the compromise from getting passed. So the Democrats are going to have everyone in the country pay higher taxes commencing January 1 of 2011 in order to continue with their class warfare positioning.

My guess is that the Democrats are going to rue the day that they took this step. As of this moment, the Democrats own the tax increase in January. they also own the resulting slow down in growth and the possible slip back into recession.

If Republicans have any sense, they will not make further concessions to allow the Democrats in the House to save face. After all, the new Republican majority can pass a tax cut retroactively to january 1 once they take office in January. Such a bill will likely also pass the Senate and Obama will sign it.

Unfortunately, the one thing that the Republicans cannot do is to retroactively fix the problems with the Alternative Minimum Tax and the Child care credits for 2010. Unless the Democrats get over their temper tantrum and act responsibly, tens of millions of middle class and poor families are going to get a big tax surprise when they have to file for 2010 next April. Since there is no real opposition to these corrective measures, the Democrats are just being spiteful to make an ideological point at the expense of the American people.