Remember having to fire Christina Romer, among others, for forecasting your $800 billion stimulus bill would keep the jobless rate below 8%? Now, private economists are forecasting a 10% rate for next year. For the first time, the U.S. is facing Euro-style structural unemployment. This is no time to be raising taxes.
White House chief economist Austan Goolsbee remains opposed to renewing tax cuts for individuals earning $200,000 a year or more, demagogued by House Democrats who last week voted against it as a "millionaires' tax cut" and even "billionaires' tax cut."
In fact, studies show cuts in individual tax rates encourage new business startups and new job creation. They fueled hiring in last decade's recovery as well as in the '80s. And they didn't have to be "paid for." Federal receipts soared as the tax base expanded.