We are heading for one at the end of 2010 unless Congress acts, reports Mallory Factor here. The reason is the fact that the tax cuts enacted early in GWB’s administration automatically expire at the end of 2010.
Needless to say, all the prominent Democrats say that we “can’t afford” to keep these awful tax cuts. What they mean, of course, is that they want to have more revenue to spend on vote-buying schemes.
A big tax increase would divert resources from the productive private sector into the maw of the prodigiously wasteful federal government. The result would be declining GDP, increasing unemployment and then further economic trouble as the politicians try frantically to “fix” the economy.
Unless this is averted, look for the stock market to start heading south in a couple of years.
