A Big Victory for the Tea Party? Not if the Result is a Big Tax Hike
I don’t know that we won a budget battle. I don’t know that the budget battle has been won. I’m undecided about this. I would love to support it, but there are things about it that give me pause because I still think a lot of it has been done from the context of fear, not being blamed, all concerned about a default which wasn’t going to happen. And I heard yesterday, “Look, we’re only one-third of the government, it’s as good as we can do.” And it isn’t bad. There supposedly are no tax increases in this. Yet the CBO is counting on the Bush tax cuts expiring next year. The Bush tax cuts are set to expire. That’s going to be a tax increase without anybody having to vote for one.
Now, it’s also possible that the Bush tax cuts will be extended. Follow me on this. It is possible the Bush tax cuts will be extended, and I think it’s 50-50. Obama’s making a big deal about having those expire and so forth for new revenue, but if we extended the Bush tax cuts once in order to not do damage to the economy, the economy is worse, I’m just telling you the possibility — follow me on this, now — the possibility that the Bush tax cuts will be extended is about 50-50. If that happens, then what happens to the CBO score? The CBO score is thrown out the window. The CBO score is BS anyway. But if the Bush tax cuts are extended, the CBO is gonna score that as a major cut, which will have to be replaced. A cut in government revenue. If the Bush tax cuts are extended, that’s less revenue than the government’s counting on, which means that the commission will have an automatic excuse to go in and raise taxes. And if they permanently patch the Alternative Minimum Tax, you know, that’s something they do annually, if there’s a permanent patch to the AMT, that’s another element that the CBO could say constitutes a loss of revenue to the government. And we can’t have that, folks.