Taxes Cut – Debt To Increase

President Obama just announced a tentative deal with Republicans on extending the sweeping tax cuts signed by President George W. Bush nearly a decade ago.

The deal extends all the tax cuts for two years, including those on upper-income Americans that Obama wanted to end. As a result, the debate over the tax cuts will have to be joined again during the 2012 presidential campaign.

via USA Today.

So we’ll be cutting the taxes (extending the Bush cuts, and cutting some other stuff), spending will increase in the form of more unemployment coverage. So taxes cut and spending up. President Obama says in two years:

“It will become apparent that we can’t afford these tax cuts any longer.” The White House said it expects a vigorous debate about that during the 2012 presidential election.

Yeah, if we don’t cut spending we can’t afford to cut taxes. Keen insight there. The debate in two years, if the Tea Party has anything to say about it, won’t be about taxes, but about spending.

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