Why won’t Obama support an extension of the Bush tax cuts?
Smartly, he takes a conservative line. He says we can’t afford the $700 billion deficit hit that would come about if we kept the tax cuts in play.
Granted, this line won’t convince anyone, even deficit hawks, but still it sounds plausible.
But seriously, what evidence is there of this? On what basis does he conclude that $700 billion is unaffordable?
The truth is that there is no evidence that this would be a budgetary dealbreaker. We owe trillions upon trillions already, and everyone knows this, and we have problem borrowing money.
So that can’t really be the reason. There’s got to be another reason for this stance. Class politics? Maybe, but we’re not sure the eat the rich strategy even flies right now, so honestly we’re stumped.
Anyway, Obama is speaking today on his latest burst of mini-stimulus ideas. We’ll learn more.
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