Keith Hennessey on the Tax Deal

http://www.futureofcapitalism.com/2010/12/keith-hennessey-on-the-tax-deal

Former George W. Bush administration official Keith Hennessey has a pretty good post pushing back against the conservative critics of the tax deal (who now also include Mitt Romney). The Romney piece suggests "perhaps establishing individual unemployment savings accounts over which employees would exercise direct control when they lose their jobs."

My own view is that the Republicans are right to grab the two-year extensions of the income tax rates and the capital gains and dividend rates now. If they want to go back in 2011, 2012, or 2013 and get rid of some of the tax expenditures (ethanol, railroad tracks, motorsports racing facilities, etc.) or ratchet back the extended unemployment benefits or go for some broader tax reform or eliminate the death tax again, nothing is stopping them from doing that. But the fact remains that the Democrats still control the White House and a majority in the Senate, and those Democrats are not just going to roll over for extending the Bush tax cuts without getting something in return.

by Editor  |  Dec 14, 2010 at 9:18 am Related Topics:  Taxes receive the latest by email: subscribe to the free futureofcapitalism.com mailing list