Bill Thomas Defends Permanent Tax Cuts

The National Review gives Congressman Thomas space to defend fiscal irresponsibility:

When it comes to financial security, “continuity and certainty” are important to America’s households. They are equally important for job creation and economic growth. It is up to Congress to provide Americans with the certainty needed to create a stable, pro-growth, job-creating environment to allow families to plan, save and prepare for their futures … To assist further economic expansion through business activity, the legislation encourages continued investment in new technologies by extending an expanded version of the research-and-development tax credit for one more year — helping U.S. business to continue to be at the forefront of the global economy. It also extends the higher expensing amount for small businesses for two years, which has freed up money for small-business employers to create new jobs and invest in the economy. It is imperative to move this legislation now to keep intact the tax relief that has resulted in a strong economy and robust job creation. Congress should provide Americans with continued tax certainty and continued opportunities to save for their future needs.

I have only two problems with his op-ed. The first and most obvious comes from the fact that the GOP leadership in Washington has no clue how to sufficiently cut spending in order to make these tax cuts permanent. The other problem I have is the implicit assumption that we need permanent fiscal stimulus to avoid falling back into a recession. If we are at full employment (a premise I do not accept) as the Bush cheerleaders are insisting – then isn’t this the perfect time to practice fiscal responsibility?