Some major Democratic donors plan to stop contributing over tax compromise

Obama has been a nightmare for progressives

Washington —President Obama's advisors are confident that liberals dismayed by his agreement to extend tax breaks for the wealthy will forgive him by the time the 2012 election kicks into gear.

But the current backlash on the left may intensify the immediate challenge Democrats face in building a new campaign finance apparatus.

Democratic operatives are already laying plans to set up new independent expenditure committees that can raise unlimited funds, and hope to enroll early contributors to establish a beachhead for the coming campaign. Some stalwart party donors are vowing to withhold funds because of their anger over the tax-cut deal.

I do not plan to support Obama and his reelection effort," said Utah-based hedge fund manager Art Lipson, who gave hundreds of thousands of dollars to the Democratic Party and its allies in recent elections. He views the tax-cut compromise as a giveaway to Republicans that will increase the deficit.

He's got many great qualities, but he is not a fighter," Lipson said of the president. "I've met with many donors and the level of disappointment is extreme.

Other discontented contributors are taking a wait-and-see approach.

Paul Egerman, a software entrepreneur in Boston, said this was the first time he felt Obama had reversed himself on a significant policy issue.

I would say I'm not a happy camper. That troubles me. I need to be convinced he really had no alternative.

Rightardia thinks many Democrats have been losing enthusiasm for Obama for several months. The Democratic enthusiasm gap greatly explains the 2010 loss of the House.

Some of the big issues that Democrats wanted to see resolved have been left open:

1. The Bush tax cuts could have been resolved before the election.
2. The lack of a public option in health care
3. DADT could have been rescinded with an EO if Obama had any balls.
   
4. Long term financing of Social Security is still open ended and Obama agreed to cut the FICA tax without any GOP concessions on Social Security.
   
5. Obama made concessions on the estate tax that were unnecessary. There had been very little discussion about the restoration of this tax by the GOP.
   
6. Continuation of the Bush tax cuts for the affluent are obscene. It will raise the deficit by $857 billion in the next 10 years.
   

Obama has stepped over the line. He has very low credibility with progressives and other blogs like Rightardia are ridiculing the president.

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