The Setup
February 5th, 2008 by Peter SudermanThe Wall Street Journal points out how the stimulus package recently negotiated between Bush and Democratic leadership in the House will quickly be used against Bush’s tax cuts:
Let’s hope Republicans appreciate the irony, because no doubt Democrats do. By signing on to a bigger deficit for the sake of election-year stimulus, Mr. Bush is making it easier for Democrats to wave the red ink as an excuse to justify repealing his 2001 and 2003 tax cuts next year.
Credit it where it’s due. This was a crafty move on the part of House Democrats: Make a mostly empty gesture toward stimulating the economy that will play well in election year while setting yourself up to achieve policy goals in the next. Raising taxes by letting the Bush cuts expire is, of course, exactly what we don’t need to do; the best thing would be to make them permanent now so as to remove current uncertainty businesses have about what their future taxes will be. And everyone in America — from the richest to the poorest — deserves to keep more of what they earn.
February 5th, 2008 at 5:38 pm
If government keeps spending at the outrageous level Mr. Bush is getting us used, then taxes will need to get raised at some point.
It is just a matter of fundamental economics, for how long can an economy sustain deficits of 2.7% to 2.9% of the GDP? (This is information taken from the 2009 budget web page).
What other ways of financing such deficit can we look for, other than borrowing even more money?
If other surplus trade nations start using SVW as their major form of investment, then how does the federal government plan to compete with the open market for money?
All those questions need to be addressed first before considering making the tax cuts permanent.
February 5th, 2008 at 6:54 pm
LOL…can they just hurry up and pass the damn package so these guys can quit harping about it? I mean come on…this is the biggest political issue of the day, over and over and over again?
“to remove current uncertainty businesses have about what their future taxes will be.”
Screw the rich…let them sweat for a change…
April 15th, 2008 at 2:10 pm
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