Monday, October 03, 2011

Hey Tyler: Taxes ARE going up

A lot.

The "Bush tax cuts" expire. Obamacare incorporates a myriad of substantial tax increases that come on line very soon.

Plus, our President has now figured out how to package tax increases on the wealthy as a jobs program (sorry President O. I didn't mean it. Please don't drone me)!

Yet Tyler says Republicans are silly to not make an additional tax deal, even if the stuff they want is unlikely to materialize because "taxes will eventually go up in any case, because they must"

I can't see why it's so obviously correct to be advocating for more tax increases than the one we already have on our plates.

I for one am strongly in favor of tax cuts relative to the current policy path we have.

1 comment:

John Thacker said...

Tyler correctly notes that taxes will go up unless there is a deal to keep spending down. What he fails to note that the deal has to successfully keep spending down, which most deals have failed to do. (Most of them are of the form "raise taxes now, we promise to cut spending later.")

I read Tyler's post and I think that it only heightens the necessity to insist on real spending cuts, and as much as quickly as possible. Time inconsistency; spending cuts "later" will always go away.

It only reinforces the point that one should drive for a harder bargain.