Bush's Tax Cuts Are Dead

February 6, 2008
Bush's Tax Cuts Are Dead

John McCain's performance in the Super Tuesday primaries, coupled with the release of President Bush's fantastical budget on Monday, may have doomed the extension of the Bush tax cuts on income, capital gains and dividends, which are slated to expire after 2010.

The proposed budget for fiscal 2009, which starts in Oct. 2008, confirmed that the Bush fiscal performance will end, as it began, as a clown show. The administration expects that if its proposal is enacted into law, the next president will confront a $409 billion deficit next year. And that's the rosy scenario version, assuming that gross domestic product will grow 2.7% in 2008, compared with a consensus estimate of about 2.2%, and that discretionary non-defense spending will barely budge, to cite two examples. And it fails to include the full cost of operations in Iraq and Afghanistan.