Democrats will be as much as saying that they’ve been wrong about the tax issue all these years and have just been punishing the rich, even at the expense of hurting the overall economy. And since the Democratic position on the economy depends on having tax money to spend, ceding the tax issue will mean largely surrendering on economics. Democrats will be left to fight it out on hot-button social issues, and to hope that Republicans save them by nominating the likes of Sharron Angle and Ken Buck. That’s an unenviable position.

It’s also radically unlikely that a two-year extension of the top bracket tax cuts will be allowed to expire when the time comes. Republicans’ numbers in the Senate are only going to increase in January, and probably again in 2012 and 2014, 2006 and 2008 having been big Democratic years. Why believe Democrats will accomplish from a weaker position in the future, what they can’t from a stronger position now? Plus, they will be left to argue incoherently that tax cuts for the rich were good then, but are bad now. That, or admit openly that they cut taxes for the rich simply out of weakness, even though they knew it was wrong. Democrats are in a world of hurt if they cave on taxes.

Thanks to the DUers who encouraged me to turn a (short) reply into an OP.