The mainstream position of the Democratic Party is that over the medium term taxes should be higher than they are now, but lower than full expiration of the Bush tax cuts would make them. Achieving this policy objective requires the following steps:
- Barack Obama is re-elected.
- Barack Obama vetoes full extension of Bush tax cuts.
- Bush tax cuts expire.
- Since now Republicans and Democrats both agree that taxes are too high, the White House proposes the “Obama tax cut” package.
This is not a foolproof plan since obviously Obama might lose the election. But if Obama loses, then Republicans will just do whatever they want on taxes one way or another.