Sunday, January 4, 2009

Obama Eyes Huge Tax Cuts; Right-Wing Will Be Confused

Tax cuts? Really? Keeping a campaign promise?

Really?

How will the right complaint about this?

Posted by James Rowen at 6:48 PM

3 comments:

Anonymous said...

No complaints here, but what will the left say?

Dean

January 4, 2009 at 8:09 PM
Anonymous said...

In the words of Milton Friedman, "I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible."

The best part of the article was this:

"A separate element would offer a one-year tax credit for companies that make new hires or reverse layoffs, which could be worth $40 billion to $50 billion. And the Obama plan also would allow small businesses to write off a broad range expenditures worth up to $250,000 in 2009 and 2010. Currently, the limit is $175,000."

At least Obama (or at least his advisors) are tacitly recognizing supply-side (or public choice for the learned) economics.

There is plenty to criticize in this proposal, but I will venture that the greater criticism should come form his supporters (and Bush detractors) who hate tax cuts and have derided deficit spending for the last eight years.

The question you should have asked was how will the left complain about this sop to the GOP? I, personally, won't complain too loudly at this proposal taken as a stand alone, but coupled to all the silliness of the proposed stimulus package (which many of us - including Congress - are trying to cull through), I am suspicious of the long-term benefits of such a move.

January 4, 2009 at 9:52 PM
Anonymous said...

James,

As a right-winger, if his tax cut is real and applies to job creators, we will actually praise him.

This would be a very smart move. If it is just preserving the Bush tax cuts - it will be meaningless, but if he really reduces the tax burden on capital and small business, then it is a sign that he has learned from the failures of FDR.

It also means that our economy may see a rebound.

Parties don't matter here. Our economy will be in meltdown for two-decades if he doesn't reduce the tax burden on investment and job creation.

I will add a few caveats though.

If BO caves in to the far-left and establishes new trade barriers - he will render the tax cuts meaningless.

If the tax cuts go in the form of refundable credits to those who already pay no taxes, then he will deepen the recession.

If BO builds his economic agenda around green jobs or the green equivilent to Enron - carbon credits / taxes - then he will deepen the recession.

If BO regulates the credit market and punishes speculative traders and other devices used as hedges against loss - then he will deepen the recession.

If BO uses symbolic and shallow tax cuts or he considers the extension of the Bush tax cuts as new tax cuts - then he will deepen the recession.

If BO approves a Trillion-dollar stimulus package filled with state goverment bailouts and infrastructure projects and stimulus checks - then he will deepen the recession, explode the national debt, devalue the currency and put us in an inflationary cycle that has only been seen in third-world countries (Bush has done much to foster this end result too).

If he embraces Friedman economics, including lowering the tax burden and forces the Fed to change it's monetary policy - he may be able to turn this extraordinary financial train-wreck into a difficult, but survivable recession.

If he does the right things - we will praise him.

The troubles that lie ahead are well beyond partisanship.

If BO fails - our nation fails. If he can do the right things - then so be it. Go ahead and be our hero.

January 4, 2009 at 10:18 PM

Post a Comment

Subscribe to: Post Comments (Atom)