OK, OK, I'm convinced that the "Fiscal Cliff" at the end of this year is going to be a problem. Previously I had said that I looked forward to tax rates returning to Clinton-era levels. But liberal economists are joining conservatives in saying that this would be very bad for the economy while it's still doing so poorly.
Of course liberals have different reasons than conservatives for saying this. Conservatives have been saying that tax hikes are always bad, no matter what the rates before and no matter what problem they're trying to solve (hell, Paul Ryan is still trying to convince us that the deficit problem can be solved with tax cuts, which would do the exact opposite).
So I do want taxes returned to previous levels, with which our government can be sustained. But it can't really happen on the middle class yet- a tax hike will be anti-stimulative. That will be fine when unemployment is back below 6%, but not now.
The problem is that I don't trust the Democrats on this issue, and I fear they'll make the Bush tax cuts permanent in their negotiations with a hard-line GOP. I sure hope they can keep their eyes on this tax prize.
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