FOX News reports (yeah, I know) that Pelosi has said she might let all the Bush tax cuts expire if the House Republicans don’t agree to the Obama plan. They say that in the Senate, Democrat Patty Murphy has suggested the same thing.
Obama’s Democratic allies in Congress only want to pass that partial, one-year extension. Republicans only want to pass an extension that continues those rates for everyone. Each side is accusing the other of threatening to trigger tax hikes in 2013.
Right now, both parties want to do the wrong thing. So let’s allow the tick-tocking clock to make the decision for us. Let the damn things expire.
I dearly hope this happens. Letting those cuts expire for everyone – even us little guys – is the best way to bring the deficit under control. We can deal with the tax code and the social security cap later, but for now, letting the taxes revert to 2001 levels might be the least painful way to address our debt.
Now, just to be annoying, Let me add that I actually also believe we should be investing right now in infrastructure – borrowing for that is as cheap as it will ever be.
Let the economists explain if that’s contradictory or not. Borrowing cheaper money today and paying off yesterday’s more expensive debt, which continues compounding at a higher rate, seems to be a good idea.
Meanwhile, let the tax cuts expire. Please.