It’s the class struggle Engels forgot to cover. The U.S. House of Representatives is at an impasse with the Senate over who deserves a tax break more: the rather wealthy or the fantastically wealthy. The House is looking for a two-year freeze on the 15 per cent tax rate on dividends and capital gains—the friend of the millionaire. The Senate, however, just put through tax relief for those in the $200,000 to half-a-million income bracket. Congress says the federal deficit is far too large for them to accept both measures. The rift has caused even some of the pro-money Republicans to suggest additional cuts awarded to the higher echelons of the wealthy will reflect poorly on the party as a whole.

Further upsetting the golden-apple cart is a provision the Senate slipped into their tax measure which imposes a $4.3-billion tax increase on oil companies. That has raised the hackles of Dubya, who has threatened to finally use his veto power should anyone dare try to take away the money he’s invaded a sovereign nation to earn.

» Scott Saxon