Shooting the Tax Santa

Summary


The Republican majority in the House of Representatives got out of Washington last weekend for the long Thanksgiving holiday without passing a pending tax bill. It was not just the congressional tendency to put off doing today what can be postponed until tomorrow. There were not enough Republican votes to pass a quintessentially Republican tax bill.

The reasons are profoundly disturbing. A goodly number of GOP House members have bought into the Democratic mantra that investment tax cuts, the backbone of economic recovery, are unfair to ordinary Americans. Having just narrowly passed a very modest curtailment of federal spending for the poor, the Republicans flinched at being accused of passing tax cuts for the rich. The leadership plans to take up the tax bill when Congress reconvenes in December, guessing that holiday turkey and relaxation will have ended last week's recalcitrance.

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Extract


Shooting the Tax Santa

The late supply-side pioneer Jude Wanniski wrote about two governmental Santa Clauses - one bestowing spending increases and the other tax cuts. For 50 years until the supply-side revo...

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