Wednesday, November 14, 2012
The President Is Holding A Winning Hand In Tax Negotiations With GOP
Bruce Bartlett was in the Reagan administration, but he has become disenchanted with the GOP focus on cutting taxes for the rich. He explains why the Bush tax cuts were made temporary, and he offers an opinion on why temporary tax cuts don't stimulate the economy. He does not believe that the GOP will give up on extending the Bush tax cuts, but he argues that they are in weaker position than they were in 2010, when the president agreed to extend the Bush tax cuts in order to preserve the tax cuts for the middle class. He also believes that higher taxes are a necessary condition for improving our fiscal balance. They are currently well below their historical average. If the president plays his hand well, he should be able to avoid the impending fiscal cliff and let the Bush tax cuts expire without increasing taxes for the middle class.