Whats the outlook on the Bush tax cuts now that the Democrats will control Congress?
We had a cabinet meeting this morning, and I made a point, which I know the President strongly agrees with: With our economy still as strong as it is and the expansion where it is, the last thing this country needs is a tax increase right now. Will the President use his veto power to block tax hikes? I can’t speculate. I’ve been actually very encouraged by what I read Charlie Rangel was saying – that he didn’t think a tax increase made sense either. As Treasury Secretary, how do you defend a policy that pairs tax cuts with the financing of a costly war in Iraq? Clearly, nothing could be more important than making sure that our troops in Iraq have everything they possibly need to allow them to be successful. And fortunately the answer to your question is made much simpler by the fact that we have a strong economy. So while we financed the war on terror and dealt with the cost of a couple of hurricanes, we still have a fiscal deficit that’s roughly 1.8% of GDP, and that’s below the avera
