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estate tax cut and the federal government gains $700 billion, making up for the $700 billion it loses by cutting the payroll tax for two years. Forget the "trust funds." They're just a matter of accounting.
Framing it as a choice between the two cuts also serves a larger purpose. It draws public attention to the scandal of the widening gap of income and wealth in America over the past two decades. After-tax incomes of the top 1 percent of American families have risen more than 150 percent, while the vast majority of families in the middle have barely gained ground. America hasn't experienced this degree of inequality in more than 80 years.
Part of the widening gap is due to a shift in economy, away from standardized production and good unionized jobs and toward constant innovations requiring more specialized knowledge. But it's also the consequence of government policies that have favored the rich and powerful while doing little or nothing to help everyone else through the transition. The Bush estate tax cut is Exhibit A.
The choice between the two tax cuts also shows which party favors people who work for a living. The payroll tax penalizes work; cutting it rewards work. By contrast, the estate tax was enacted to prevent family dynasties whose heirs would never need to work. Cutting the estate tax rewards idleness.
So there you have it: a clear choice that speaks volumes. Democrats had no message in 2002 and paid the price. Bush had a tax cut and a war on terrorism. You can't fight something with nothing. If Democrats want to win back at least one chamber of Congress and have a fair chance of regaining the White House two years from now, they'll have to fashion a tough but humane foreign policy and a plan to get the economy moving. Most importantly, they'll need to remind Americans what's at stake: a democratic society that offers the world a model of equity and opportunity or one that's run by and for the people at the top. Some choice.
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