Here it comes … higher taxes on middle class
An NY Times op-ed by just-departed WH budget chief Peter Orszag is getting lots of play because he advocates temporarily extending all the Bush tax cuts. After that, though, he wants all of them to expire. This is the part that really got my attention:
More troubling, middle-class and lower-class families would be saddled with higher taxes. That’s a legitimate concern, but also a largely unavoidable one if we are to tackle the medium-term fiscal problem.
Me: Again, Orszag accepts that Americans are undertaxed, which is left-center dogma. Of course, the real problem is not that tax revenues will be dramatically lower long term, it is that spending will be dramatically higher.