[Guest post by DRJ]
Obama’s economic transition team wants to take immediate action to help the ailing economy, including reneging on Obama’s pledge to repeal the Bush tax cuts for the rich:
“President-elect Barack Obama signaled Sunday he will move urgently and aggressively to rescue the plunging economy, demanding swift passage by Congress of a massive two-year spending and tax-cutting recovery program. “We’re out with the dithering, we’re in with a bang,” a top Obama aide said.
Obama’s plans, outlined by his transition team on television talk shows, could put aside his campaign pledge to repeal a Bush tax cut for the wealthy. With the downturn in the economy, those tax cuts may remain in place until they are scheduled to die in 2011, said William M. Daley, an economic adviser. “That looks more likely than not,” he said.”
I’m pleased Obama intends to act in a decisive manner because certainty is reassuring to the economy and the markets, even when the policies aren’t optimal. I’m also pleased Obama’s economic advisers have decided not to go forward with tax increases. I’m not that happy with massive New Deal-type spending that will undoubtedly be riddled with pork, but my side lost that battle.
Finally, instead of treating this “change” as more proof Obama is an open-minded moderate, I hope his supporters will also consider the possibility that higher taxes hurt the economy … and Obama and his advisers know it.