Did you wake up this morning from your summer slumber to discover that Democrats are about to get shellacked in the midterms, that unemployment is proving intractable, that the economy is verging on a double dip recession, and that all the political class can seem to stay focused on, at least rhetorically, is deficit reduction?
Missing the beach yet? It gets better.
The big agenda item for Congress between now and the election is whether to extend the Bush tax cuts, set to expire at year’s end. We can’t afford more government spending to rescue the economy and put the jobless back to work, but we can afford starving the government of revenue by extending those massive Bush era tax cuts. Even Peter Orszag agrees.
Brian Beutler takes a look at the main options under consideration for how to handle the Bush tax cuts.