Congress breaks, but what about the Bush tax cuts?
The fate of the soon-to-expire Bush cuts remain in limbo as Congress was unable to reach a partisan solution to America's fiscal problem before breaking for a much needed recess. By and large the debate boils down to two simple arguments. One side argues that letting the cuts expire is tantamount to a tax hike, something that will cripple an already fragile American economy. The other side argues if we extend the tax cuts then our deficit problems will mount and exacerbate an already critical situation. Who is right? In short, both "solutions" are incorrect even if they correctly illustrate the consequences. The Democrats just want to get back to the same tax levels as the Clinton years and the Republicans cling to the one economic concept they have learned - tax hikes stifle economic growth. Yet both seem to forget that spending was substantially lower ten years ago before the tax cuts were implemented. How much lower? The projected...