OH, NOW YOU NOTICE

WASHINGTON, Jan. 8 — A number of moderate Senate Democrats who were instrumental in helping President Bush pass a tax cut in 2001 said today that they opposed eliminating the federal tax on dividend payments, clouding the Congressional prospects for the central feature of the new Bush economic plan.

In 2001, President Bush was able to garner enough bipartisan support in the thinly divided Senate to pass his $1.35 trillion tax cut package. This time, however, even the president's Republican supporters predict a tougher road.

"There are a number of Democrats who voted with him on the last tax cut, and also a number of Republicans, who are not willing to just accept this one as a fait accompli and take it as it is," Senator John B. Breaux, Democrat of Louisiana, said in an interview, adding that the dividend tax cut would have to be "replaced and/or dramatically scaled down."

The support of Mr. Breaux is considered crucial to passage of any economic stimulus legislation by the Senate, where Republicans have the barest majority. In 2001 he helped the White House win 12 Democratic votes for tax cuts. (Full story)

We've already seen Chafee come out against the plan as it stands. Now John Breaux -- a man the Bushies were trying to lure into their cabinet two years ago -- slides his name over to the "no" side for the time being.

Between the "stimulus" plan and the Pickering nomination, drama is sure to ensue in the Senate this session. However, on the other side of the dome, the GOP-controlled House seems more bent on comedy:

A potential problem the White House may face in the House is the desire of some Republican leaders to enact more expansive tax cuts than the White House proposed. Representative Tom DeLay of Texas, the House Republican leader, said today that he would like to pass an even bigger proposal.

"I look at the Bush plan as a floor," Mr. DeLay said, "not a ceiling."

Given the current state of the economy, and the lack of any actual stimulus in Bush's "stimulus" plan, if it is a floor as DeLay suggests, then that floor is being eaten away by termites. Such a course of action by the House and by DeLay -- the self-described "Exterminator for Christ" -- could serve as an "Exterminator for Bush's re-election hopes". DeLay, as nutty as he is, is speaking for the wingnut base, saying "the GOP has all the power now, and you couldn't have made it this far without us wingnuts, now let's outlaw abortion and impose flat taxes, and let's do it now!". Perhaps Bush and level-headed conservatives know better than to come out with such eagerness and hubris. Whether they know or not, I think that they just can't help it.

But yes, the tax cut on dividends is a campaign contributor giveaway, and has nothing to do with helping the economy and average working Americans, so it has to go.