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Lock Congress Up Until They Deal

johnm h Wrote: Dec 28, 2012 6:13 AM
Since no meaningful budget cuts are possible, Congress should allow the Bush rates to snap back to pre Bush levels. We get modest budget restraint and broaden the base. These cuts were mostly Keynsian not supply side and letting them expire won't harm the economy. The real harm to the economy is government spending and regulations. They should focus on these alone.
Kibitzer Wrote: Dec 28, 2012 10:21 AM
And, just why are no meaningful budget cuts possible? We all know that there is a lot of unnecessary federal spending.
The Teleprompter Speaks Wrote: Dec 28, 2012 8:57 AM
Please explain what makes those cuts Keynesian, instead of supply-side?
johnm h Wrote: Dec 28, 2012 9:19 AM
The significant cuts were at the lower brackets aimed at increasing consumption among folks who spend all of their income. The top bracket was cut only a little, a cut that that could be called supply side as was reduction of capital gains taxes, but the broad sweep of the taxes was aimed at increasing consumption. None of them were necessary to stimulate the economy as the burst dot com bubble would have recuperated quickly on its own and the 9/11 shock was just that, a one time shock. In addition the policy included one time transfers to all tax payers. The cuts gutted the tax code by removing a large percentage of the population from income taxes. That arithmetic is destroying the country.

Stocks staged a late day rally because the Senate is prepared to kick the can down the road, avoiding any chance of fiscal sanity this year or next.

Whether or not the House will go along is another matter, but unfortunately Speaker Boehner calls House back to Washington on Sunday

The House of Representatives will reconvene on Sunday evening, just less than 30 hours before the United States reaches the fiscal cliff.

House Speaker John Boehner, R-Ohio,...