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Behind the Lines: Tax cut wars


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Bagley: Stimulus. Budgets. Infrastructure. Income inequality. Taxes. Job creators. Expansion of government. Public-sector unions. Pensions. Health care. Jobs ... So much to address and so little time. In the future you’ll be back and we can dedicate quality time to each. In the meantime, while I agree that the stimulus could have been better focused (40 percent went to tax cuts — it was the only way certain Republicans would sign on), according to the Congressional Budget Office the stimulus "[i]ncreased the number of people employed by between 1.4 million and 3.3 million." Unlike other recessions, the number of people employed in the public sector has actually fallen, so these numbers represent an increase in private sector employment. A better crafted Stimulus II with an emphasis on infrastructure could create millions more jobs, but good luck with that; Congress would rather lean on the fence and watch Obama sweat.

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The Top Comment from last week is from builderjohn:

"Obama is a Keynesian, Romney is a Keynesian, ‘Now is the worst time to raise taxes on anyone.’ Boehner, McConnell, the vast majority of Congress, who agree with the above, are Keynesians. Even the patron saint of the GOP, Ronald Reagan, was a Keynesian, though he might not have realized it.

All God’s children got Keynesian economics."




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