Historic Moment Was Predictable?
Presidents from 3 administrations all agree on one thing? Low taxes can stimulate growth in a recessionary environment. President Obama recently called President Bill Clinton for help in sending out the message that it is necessary to pass the Bush tax cuts to help stimulate the economy. This theme has been prevalent throughout much of our work at here Tory Capital for the past few weeks. We speculated that President Barack Obama would be needing help from President Clinton and wondered how raising taxes with 9.6% unemployment was fiscally responsible. (Read. Aug 1. edition: “November 2010 Barack and Bill?”)
Now it looks like opposition has come from Democrats in his own party who have now been conditioned into believing that taxes cost money, and actually have exact numbers for how much. President Bill Clinton may just be what is needed right now to help unify the economic debate. The Bush Tax cuts will most likely be extended.