Knock on wood, but it sounds like Washington might avoid an opportunity to hurt the economy.
Reuters and other outlets are reporting that Republicans are likely to support extending the payroll tax cut.
Various firms have estimated that the tax cuts are worth 0.5-1.5% of GDP, so it’s a big deal.
There’s still a dispute about how the tax cuts would be “paid for”. Hopefully they can come up with some accounting trick. Bottom line though is that it seems it’s just too politically costly to be seen as opposing a continued tax cut.
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