Friday, September 24, 2010

Senate again kicks the can down the road

The Senate can't make up its mind about which vote would help the most in the November election--extend all the Bush tax cuts, or just those for the bottom 98% of taxpayers.  So they are taking the coward's way out, and have promised to vote first thing after the election, according to Tax Notes.  Nor will the compromise position of a 2-year extension for all the cuts get a vote.

My view is that this is the worst of all possible worlds.  Charles Grassley's comment is apt: " . . . uncertainty is terrible for the economy. Small businesses don't hire people while they sit in limbo, wondering if they'll get hit with a tax increase."  Leaving the $4 trillion sword of Damocles over the head of the American taxpayer seems like odd political strategy for any incumbent.

My understanding is that the call to extend all the Bush tax cuts implicitly includes repealing the estate tax. Has anyone seen something to contradict that?

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