Quote:
Originally Posted by Cletus Miller
Hence deficit/debt, rather than one or the other. Wasn't one impetus for Clinton reducing the debt the threats of the bond vigilantes? And I don't recall S&P/Moody's issuing downgrade warnings on T-bonds back then.
And, as to the expiration of the 01/03 taxcuts, that would be "higher taxes", which I will believe fully upon 2011 ending without any re-authorization.
Are you not sympathetic to the view that the politicians will spend 12 cents of every additional dime in taxes, thus a need to cut (even if only thru reduction in growth) before adding to the revenue side?
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Clinton did a good job of spending 8 cents of each additional dime in taxes - it can be done.
Yes, I think we'll see some higher taxes and some cuts, in each case at manageable levels.
