Tax cuts economic stimulus? Not so much
Here's something I promised a devout believer that tax cuts solve everything. (one of the 2 minus 2 equals 5 crowd who devoutly want to drag the country back to the pre-New Deal era.)
It's from a small post on Princeton economist Paul Krugman's blog in which he writes:
If this Times report is at all right, Republicans will hold any attempt to help the economy now hostage to yet another try at making the Bush tax cuts permanent — thereby, among other things, crippling future possibilities for health care reform. I suspected that’s what would happen, but thought that maybe, just maybe, the GOP would be sufficiently scared by the prospect of a nasty recession in an election year that it would back off. Guess not.
Just a reminder: here’s the evidence on which Republicans base their faith that making the Bush tax cuts permanent is absatively, posolutely, essential to prosperity:
Update: Rereading this, I think I could have been clearer. The only way anything useful will get done by way of stimulus in the next few months is if both parties agree not to demand anything that would tie the hands of the next president and Congress — that means no long-term spending plans from the Dems, no long-term tax cuts from the GOP. And it seems that the Republicans are already making it clear that they won’t play it that way; they’re trying to hold any help for the economy hostage to their agenda, which is exactly what happened 7 years ago.