There are some things that make Democrats positively tremble. For instance, they are scared of the "gun lobby." The tax-cut lobby, not so much. But, given the option, the tenuous Democratic majority--filled with "red state Democrats"--would prefer to shed its image as "the party of 'tax and spend.'"

And so, considering that it campaigned in many places against "tax breaks for the rich," incoming Democrats are taking a remarkably pragmatic approach to taxation. Don't expect the sunset of the "death tax" to be extended anytime soon. While Republicans continue to argue that the automatic reemergence of the tax four years from now will threaten small businesses, the issue has become a shibboleth for congressional Democrats.

Democrats will also move early and often on politically motivated legislation--which will certainly be vetoed--to raise taxes on the oil companies.

On the other hand, serious discussions have been directed at a tax restructuring that would take tax increases from those earning over $500,000 and redistribute them to whatever Democrats consider "the middle class." Raising the maximum tax rate on those earning over $500,000 to 39.6% would "raise" $85 billion over four years, according to one
calculation. . . .

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