• This is a rush transcript from "The Journal Editorial Report," December 4, 2010. This copy may not be in its final form and may be updated.

    PAUL GIGOT, HOST: This week on the "Journal Editorial Report" —


    SEN. TOM COBURN, R-OKLA.: It is time for us to get our act together. We're really on three fronts now, Iraq, Afghanistan and the financial tsunami.


    GIGOT: Well, that financial tsunami takes center stage as Congress debates tax cuts for most Americans and the Debt Commission's controversial plan to slash $14 trillion in debt. It's garnering surprising supporters.

    And could there be a new culture of spending in Congress? Find out why we believe there just might be, and who should lead that charge.

    Plus, a proposal that gives citizenship to the children of illegal aliens, is it amnesty or altruism?

    Welcome to the "Journal Editorial Report." I'm Paul Gigot.

    The House votes to extend the Bush tax cuts to Americans earning less than $250,000 a year, a bill that was all but certain to be dead on arrival when it goes to the Senate.


    REP. JOHN BOEHNER, R-OHIO, HOUSE SPEAKER-ELECT: I'm trying to catch my breath so I don't refer to this maneuver going on today as — as chicken crap, all right? But this is nonsense, all right?


    GIGOT: Presumptive House Speaker John Boehner, not the only one with ruffled feathers. Senate Republicans filing this week to force Democrats to focus only on matters of money before taking up anything else. And how will President Obama respond? That's the trillion dollar question.

    Mr. Obama appointing Treasury Secretary Tim Geithner and budget director, Jack Lew, to work with representatives of both parties to help break the stalemate.

    We'll start with the politics of the tax cut debate. Is the middle class caught in the cross fire?

    Joining the panel this week, Wall Street Journal columnist and deputy editor, Dan Henninger; editorial board member, Matt Kaminski; and from the nation's capitol, Washington columnist, Kim Strassel.

    Dan, is the sound of gridlock breaking we heard on taxes?

    DAN HENNINGER, COLUNMIST & DEPUTY EDITOR: I think maybe it's thin ice breaking beneath all of these politicians. If you're talking with gridlock breaking and you're suggesting they're getting close to a deal, the overwhelming logic of this situation, which is to say, all of these tax breaks expiring and rates going up.

    GIGOT: Huge, huge tax increases, almost $4 trillion over 10 years.