The newest member of the New York Times’ stable of columnists is Peter Orszag, who just recent quit his post as Obama’s top aide on the budget.
His first piece is on the question of the tax cuts, and guess what, he doesn’t share the administration’s official line.
In fact, he says, revoking the Bush tax cuts will make the jobs picture worse.
Higher taxes now would crimp consumer spending, further depressing the already inadequate demand for what firms are capable of producing at full tilt. And since financial markets don’t seem at the moment to view the budget deficit as a problem — take a look at the remarkably low 10-year Treasury bond yield — there is little reason not to extend the tax cuts temporarily.
Notice the key word is temporarily.
He still thinks that the government should announce the eventual revocation of the tax cuts (for a couple of years down the road) as a way of showing deficit-fighting seriousness.
But the bottom line is that while Geithner and Obama argue that taxing the rich more will have no negative impact, Orszag clearly disagrees.
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