Economist’s View – Paul Krugman: Let’s Not Make a Deal
From the Economist’s View:
Democrats should not give in to demands to extend the Bush tax cuts for all taxpayers:
Let’s Not Make a Deal. by Paul Krugman, Commentary, NY Times: Back in 2001, former President George W. Bush pulled a fast one. He wanted to enact an irresponsible tax cut, largely for the benefit of the wealthiest Americans. But there were Senate rules in place designed to prevent that kind of irresponsibility. So Mr. Bush evaded the rules by making the tax cut temporary, with the whole thing scheduled to expire on the last day of 2010.
The plan, of course, was to come back later and make the thing permanent, never mind the impact on the deficit. But that never happened. And so here we are, with 2010 almost over and nothing resolved.
Democrats have tried to push a compromise: let tax cuts for the wealthy expire, but extend tax cuts for the middle class. Republicans, however, are having none of it. … It’s all or nothing, they say: all the Bush tax cuts must be extended. What should Democrats do?
The answer is that they should just say no…, saying no, and letting the Bush tax cuts expire on schedule, is the lesser of two evils.