08 March 2010

Delaying The Inevitable

Times (UK): America puts off the pain to have some jam today

Being unwilling to rein in spending, Obama will soon be proposing further tax increases of a size that will dwarf the few tax breaks he is offering to small businesses that take on new workers. Nobody doubts that the commission the president is appointing to find a way out of the fiscal mess will recommend tax increases now, and spending cuts, if any, much later. Or that Congress might well decide to do neither, and Micawber-like, simply hope that something turns up.

That means we have an odd situation. We are to have jam today, this year, and perhaps even next, with the bill to come due shortly thereafter. If Obama has his way, that won’t happen until after his re-election in 2012.

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