The new Washington Consensus: taxes, taxes and more taxes
This depressing WSJ article outlines some possible solutions to America’s long-term fiscal problems:
1) Don’t keep fixing the AMT
2) Let all the 2001 and 2003 tax cuts expire
3) Add a VAT overlay on top of current system
4) Tax Wall Street trading
5) Put an expiration date on business tax cuts and credits
6) Create a commission, like the Greenspan Commission on Social Security, that would cut spending and … wait for it … raise taxes.
This article perfectly encapsulates Washington thinking that fundamental change in how Washington spends America’s tax money is really impossible. So raise taxes through the roof. One more reason to believe a low-growth New Normal is here.