Fiscal Poison Pill
By PAUL KRUGMAN
NYT
A poison pill, in corporate jargon, is a financial arrangement designed to protect current management by crippling the company if someone else takes over.
As I read the nonpartisan Tax Policy Center’s analysis of the presidential candidates’ tax proposals, I realized that the tax cuts enacted by the Bush administration are, in effect, a fiscal poison pill aimed at future administrations.
True, the tax cuts won’t prevent a change in management — the Constitution sees to that. But they will make it hard for the next president to change the country’s direction.
Exhibit A of the poison pill in action is the sad case of John McCain, part of whose lingering image as a maverick rests on his early opposition to the Bush tax cuts, which he declared excessive and too tilted toward the rich.
Since then the budget surpluses of the Clinton years have given way to persistent deficits, and income inequality has risen to new heights, vindicating his opposition.
(Continued here.)
NYT
A poison pill, in corporate jargon, is a financial arrangement designed to protect current management by crippling the company if someone else takes over.
As I read the nonpartisan Tax Policy Center’s analysis of the presidential candidates’ tax proposals, I realized that the tax cuts enacted by the Bush administration are, in effect, a fiscal poison pill aimed at future administrations.
True, the tax cuts won’t prevent a change in management — the Constitution sees to that. But they will make it hard for the next president to change the country’s direction.
Exhibit A of the poison pill in action is the sad case of John McCain, part of whose lingering image as a maverick rests on his early opposition to the Bush tax cuts, which he declared excessive and too tilted toward the rich.
Since then the budget surpluses of the Clinton years have given way to persistent deficits, and income inequality has risen to new heights, vindicating his opposition.
(Continued here.)
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1 Comments:
SUGGESTED POSTING From CHECKPOINT by Larry Rohter, everything you need to know about Obama and McCain’s proposals are encapsulated in one paragraph :
“According to the Tax Policy Center’s computations, under Mr. Obama’s plan, the middle of the middle class, or those earning $37,595 to $66,354, would see taxes cut by $1,042 a year. Under Mr. McCain’s plan, taxes for people in that category would also fall, but by $319; the largest chunk of the benefits would go to those making $2.8 million a year or more.”
Add to that McCain’s plans on Capital Gains and Corporate Taxes tell me that, his administration would help our economy as much as the current Bush Administration.
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