For many conservatives, the thumbs-up from Rep. Paul Ryan of Wisconsin is reason enough to support the Obama-GOP tax deal — well, that and the fact so many liberals are in a purple rage about it. And certainly there is nothing wrong about letting individuals and businesses keep more of their money — even for a little while. But Sen. Jim DeMint of South Carolina, another lover of tax cuts and hater of bloated big government, says he will oppose and even filibuster the ginormous stimulus package. Here is DeMint on the Hugh Hewitt radio show:
Congressional Republicans appear to be quietly but methodically executing a plan that would a) avoid a federal bailout of spendthrift states and b) cripple public employee unions by pushing cash-strapped states such as California and Illinois to declare bankruptcy. This may be the biggest political battle in Washington, my Capitol Hill sources tell me, of 2011.
Let’s assume for a moment that the Democrats don’t scuttle the whole thing. And that very well may happen. It’s all very good news from a Keynesian perspective. Unemployment insurance and the payroll tax cut both score especially well in the sort of demand-side economic models run by, say, the Congressional Budget Office. And I will certainly take even temporary tax cuts over more spending to prop up public employee unions and cater to the green lobby.
Fiscal austerity may be coming to America, but it probably won’t be arriving any time soon. President Barack Obama and Republican leaders have agreed to some $1 trillion of economic stimulus over the next two years, mostly in the form of tax cuts (or non-increases). If the package makes it past Congress—and especially past Democrats—the message will be that, for now, Washington is going for growth.