When future historians review the Presidential record of George W. Bush, his push for across the board tax cuts will be well received and praised for spurring substantial economic growth during most of his two terms. However, it appears the Bush Tax Cuts, which are set to expire at the end of this year, might be extended by the Democratic controlled Congress.
Yes, you did read that right. Several Democratic Senators and Congressmen are calling on both Houses of Congress to once again extend the Bush Tax Cuts, and their position received a major endorsement this morning - from Federal Reserve Chairman Ben Bernanke. It seems some are starting to get it.
It's true that the Bush Tax Cuts would have one hell of a legislative hill to climb, but that isn't unusual for these Tax Cuts, which barely passed the Senate back in 2003, even though Republicans had a slight majority (3 Republicans voted no, 2 Democrats voted yes, and Cheney broke the 50-50 tie).
Could the Tax Cuts be extended? Probably not. Here's why:
1. Speaker Pelosi opposes them, and unless their added onto some other piece of legislation via an amendment (which would require the support of 50% plus 1 of the House), nothing will happen in the House, unless her hand is forced.
2. 44 Senators support them now, but we would need 51 Senator's at the least if the vote does come, which I see as near impossible.
3. President Obama has to sign off on them. And unless he is visited by the ghost of Reagan, and the actual presence of Bush bashing him over the head, I suspect he would wield his Presidential veto power.
If the Bush Tax Cuts are extended, it's possible the Great Recession will not be as horrific as we previously thought, but that's a big if, because the Tax Cuts actually have to be extended, which will probably never happen, even though the list of Democrats supporting them increases each and every day.
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