This past Friday, President Obama signed the kind of law that makes everyone happy… an extension of the Bush-era tax cuts. It’s a deal Republicans like because it keeps income, dividend, and capital gains tax rates relatively low for another two years. While Democrats like it for its extension of unemployment benefits, reduction of Social Security payroll taxes, and extension of tax credits for children, college tuition, and a variety of other items.[Read more...]
US taxes will be increasing… it’s just a matter of time. In the clip below, from Jon Stewartâ€™s Daily Show, you can see his perspective on how taxes, or the lack of them, may play a role in strengthening the powerful federal deficit monster. Sure, its content is probably overly anti-Republican given both parties are a mess, but it’s still funny.[Read more...]
US fiscal policy has been out of whack for so long that both Democrats and Republicans share a part in the blame. But, for a recent column in the Financial Times Gideon Rachman focuses on the Republican role in debt creation. In particular, he looks at how Ronald Reagan’s strengths and weaknesses in office have evolved over time into a muddled mess of tax and spending strategy.[Read more...]
Despite the lack of any sustainable, long-term financing solution — and record debt levels — it seems one of the only thing Democrats and Republicans can consistently agree upon is more and more spending… whether through taxes or debt.
As Jesse Felder astutely points out, it’s a really unfortunate case of the pot calling the kettle black.[Read more...]