Taxcut haircut

President Obama has twisted the arms of the Senate Republicans so much that they are going to give him exactly what they want: extension of the Bush tax cuts for two years. Ezra Klein at the Wall Street Journal reported on Mark Zandi‘s thoughts:

I also asked him about the Bush tax cuts. His own figures say they’re a horrible deal on stimulus grounds, returning only 35 cents in new economic activity for each dollar we spend.

So let me just say that we can spend money to insure that investors who invest in risky real estate bonds do not get a haircut by taking a loss, but we can also give the US taxpayer a haircut of 65% on every dollar of tax cut that we give to the wealthy. Sounds like socialism for the rich.

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