The so-called revolt is comprised of three Democratic senators: Kent Conrad, Evan Bayh and Ben Nelson. They want to extend all the George W. Bush tax cuts. That includes taxes on the wealthy, or the top personal tax rate, the investment taxes on capital gains and dividends, and the estate tax.
So is this revolt a game-changer, or merely wishful thinking?
With a strong pushback against the revolt by President Obama, Treasury man Tim Geithner and House Speaker Nancy Pelosi, right now it looks like wishful thinking. But with Democrats getting badly paddled in various polls, you never know.
When Tim Geithner told me in a CNBC interview a few weeks ago about his 20-20 rule for the top tax rate on capital gains and dividends, I blogged that this was a good thing — in particular the story for dividend taxes, which could go to 39.6 percent. But no increase at all on investment taxes would be even better.