James Pethokoukis alerts us to a passage in just-departed WH budget chief Peter Orszag’s op-ed that suggests left-of-center politicians think Americans are undertaxed.
The current political debate about extending the Bush tax cuts is really about whether income taxes can be raised in general. Yes, a bait-and-switch. If enough politicians and the public come to believe income taxes can be increased on “the wealthy”, Democrats will change course during the legislative process. They will then argue budget deficits are bigger than expected and other people’s taxes will have to be raised also.
They’ve done it before, successfully in the early 1990’s.