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Friday, July 22, 2011

How to make tax increases palatable to conservatives.

House Republicans make the point that in principle, they don't like tax increases at any time, but during a recession would be counter productive.  Actually, there is ample evidence from past recessions that the exact opposite is the case, that tax increases at those times help boost employment.  But let's go along with their assertion for the moment.

So, why not a grand deal that includes expenditure cuts, but takes them at their word, and postpones the implementation of revenue enhancements until the GDP increases by some agreed-upon amount or a specific time has passed.

That would let us see if they're serious about it or not.  I doubt if they would agree to any revenue enhancement by any means.

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