We’re convinced that the talk from earlier today about Obama possibly cutting taxes is true.
It just makes too much sense politically AND economically for The White House not to be serious about it. Pretty much the only reason that it ever made sense to cancel the Bush tax cuts was to make a signal that we’re serious about the deficit.
But a) The deficit just isn’t that pressing of an issue right now and b) the only deficit hawks would be happy to cut taxes on the rich.
There’s just no way that keeping the tax cuts could hurt anything, and to the extend that it foments some economic confidence, that’d be a good thing.
So the only question is: how?
Obama would need to find a way to walk back all his previous administration’s previous comments about not extending the tax cuts in a way that didn’t make him a waffler. That’s the challenge — we’re not sure how that will work.
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