What will our leadership in the Republican Party show us today? Let me be upfront – I’m not a proponent of broad tax cuts. When you look at the non-biased economic studies over the years, stimulation through tax cuts is a mixed bag of results. There’s no guarantee of a pot a gold at the end of the rainbow.
We are presently at full employment – so tax cuts to create jobs is a bit of an empty promise. We are at historic low interest rates, and although our debt is within “reasonable” limits (% of GDP), increasing rates could create problems with larger deficits if the economic stimulus doesn’t deliver. Oh, and GDP is beginning to grow at an acceptable rate — without tax cuts.
So, what is Congress/Administration trying to accomplish? Is it truly a way to help the middle class? Does it help sustain many of the social programs which are essential to many? Will it help small business and individuals who create jobs (sorry Wall Street – you don’t count)? Or is this just more political posturing to show that the guys in charge are marching true to the party line?