Wednesday, August 18, 2010
All to do about nothing
During my life time the biggest cause of Federal deficits has been tax cuts. It started with Reagan, and continues to this day. Is it any surprise that Clinton both raised taxes and reduced the deficit. Yet the Right has the delusion that tax breaks are somehow separate from the deficit. Its magic money that is automatically offset by an improved economy. And failing to extend the cuts, which even the Bush administration thought was unnecessary, will cause economic collapse. Unfortunately reality has never worked this way, not that the facts ever get in the way of a good sound bite.
The Washington Post points out that letting the Bush tax cuts lapse will not cause the economy to collapse, but rather will impact a very small amount of the population.
(Image from the Washington Post)