“If you give a mouse a cookie, he’s going to ask for a glass of milk. When you give him the milk, he’ll probably ask you for a straw. When he’s finished, he’ll ask for a nampkin…” This children’s book which I read to my son about hundred times years back now reminds me of the new Tim Geithner fiscal plan which we got a whiff of a few weeks ago. Republicans finally decide to give in on about $800b in tax increases and the Obama administration says they want $1.6T of taxes with spending cuts to be determined later. Any economic credibility that Geithner professed to have is out the window. The US economy is growing no more than 2% and his plan is to take 1% of GDP right out of the private sector per year. While this could be just awful DC negotiating, the optics now look like a giant money grab where the income of the top 2% is just a cookie jar for others to stick their hands in to eat as many as they want.
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