The Fiscal Cliff.  Once again, our Congress is nearing an impasse on a critical element of necessary governance: the expiration of the Bush tax cuts.   The common sense solution to this issue is clearly to extend the current tax rates for one year; giving “whomever” is elected President in November an opportunity to work out some type of tax reform with the new Congress.  It is difficult to understand why the Democrats do not understand the wisdom of this course.  Perhaps they have gazed into their crystal ball and see that with little or no chance of regaining control of the House, increasing the upper tax rate is the best outcome they can hope for in the foreseeable future.  On the other hand, Republicans are likely relishing the notion they will retain the House and possibly gain the Senate and White House, thus giving them relatively free reign to rewrite the tax laws.   If we accept both of these assumptions, the largest negotiation margin must lie with the Republicans.  If they now concede to an increase in the higher rates in return for continuing all others and preventing a trip over the cliff, they should have an opportunity next year to rewrite the agreement more to their liking when they assume greater control of government. 

A case can be made both to leave the rates intact until after the coming election in order to allow the “will of the people” to made evident and to pursue the Democratic position of raising the upper rates for now and dealing with the “larger” reform issue later. 

For me, rationality dictates that the simplest course is the best course; and that course is to simply extend the current rates.  It has become such an ordeal for this Congress to agree on anything that adding necessary civility to the formula does nothing more than to guarantee stalemate and likely failure.