Apparently Paul Krugman has decided the tax cut is evil and is doing harm to our country. While this is nothing new from him, he does bring up some solid points. One must look upon the federal budget, which has swung into the red by a loss of almost $400 billion, in the extreme long term to even begin to ponder when those Clinton-era surpluses may return. Whereas just two years ago we were deciding whether to use the Social Security surplus to pay down the national debt, we now borrow heavily just to keep the deficits from flying completely off the handle. Upon this forecasting of such good news, we learn "that 60 percent of the tax cut has yet to take effect." And why is this? Well, because while those of us in the middle class have already gotten most of our tax cut, that famous "top 1 percent" can expect $45,000 more, per year, until it expires. And now Bush wants to make the tax cut permanent.
This underlies a huge problem with the Administration that few in the public seem to be picking up. Instead of creating an agenda around the needs of the country following September 11th, Bush has kept the exact same one from the campaign trail, and fashioned each item on it as a type of "security" for the country. As Krugman shows, the Bush Administration claimed that domestic spending must be slashed to make room for the war (which, according to Krugman, has cost only $10 billion), but to stimulate the economy, the tax cuts must be made permanent. How, a decade from now, additional tax cuts will pull us out of a recession that's going on today is utterly beyond my comprehension. The White House needs to understand that while cutting spending domestically might be the easy thing to do, telling the top one percent that they shouldn't receive their government giveaway is the real way to start towards fiscal discipline. Some how I doubt such a policy change is forthcoming.