The idiotic idea running through Congress right now is to extend the tax cuts for the rich for another two years. This is a horrible idea that will never, ever work and will simply mean that they are extended forever.
The reason is that Republicans are likely to lock down control of Congress in this election and then gain towering majorities in 2012 as they will control redistricting in most states.
What will happen is that these Republican majorities will then extend these tax cuts again in two years, making them permanent again.
This is such a wrongheaded idea that it makes me sick. The promise from Obama and Democrats was that these wasteful tax cuts for people that dont need them and dont spend all of their money the way poor and middle class families need to, would expire.
These tax cuts do nothing for economic growth. Clinton raised taxes on the wealthy in 1993 and the economy exploded with growth and jobs. Reagan raised taxes in 1982 and the economy also exploded with growth and jobs. George W. Bush cut taxes for the rich in 2001 and 2003 and economic and job growth remained sluggish.
I just assume allow all of the cuts to expire and then let Obama propose extensions for the poor and middle class and dare Republicans to vote against them.
If Obama caves on this, he will reap the whirlwind of higher deficits and continued weak economic growth.