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Morning Bell: Make Bernanke Keep His Word on Stimulus Neutrality
Posted By Conn Carroll On January 17, 2008 @ 9:12 am In Ongoing Priorities | Comments Disabled
Heading into today’s testimony from Federal Reserve Chairman Ben Bernanke, Republicans and Democrats are divided  over what Congress’ imminent stimulus package should include. Key to any Republican sign off on a bill would be a provision making the 2001 and 2003 tax cuts permanent. Democrats want up to $100 billion in new spending and temporary tax rebates . Bernanke claims he will not comment  on whether making the tax cuts permanent should be part of any stimulus package, but Democrats who met with Bernanke claim otherwise.
House Majority Leader Steny Hoyer (D-MD) told Bloomberg News that Bernanke agreed with him that steps being considered now ought to be “kept separate ” from making the tax cuts permanent. Bernanke will fail to avoid being sucked into Congress’ stimulus debate unless he disavows Hoyer’s comments.
There are new projects, businesses, and expansions of existing business that are being canceled or delayed today due to uncertainty about the scheduled tax increases for 2009 and 2011 . Since most major capital undertakings take longer than three years, making the 2001 and 2003 tax cuts permanent would stimulate economic activity today.
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URL to article: http://blog.heritage.org/2008/01/17/morning-bell-make-bernanke-keep-his-word-on-stimulus-neutrality/
URLs in this post:
 Republicans and Democrats are divided: http://thehill.com/leading-the-news/stalemate-on-stimulus-2008-01-17.html
 up to $100 billion in new spending and temporary tax rebates: http://www.washingtonpost.com/wp-dyn/content/article/2008/01/16/AR2008011604244.html?hpid=topnews
 claims he will not comment: http://www.nytimes.com/2008/01/17/business/17fiscal.html?ref=todayspaper
 kept separate: http://www.bloomberg.com/apps/news?pid=20601087&sid=axNV4KGulqxI&refer=home
 scheduled tax increases for 2009 and 2011: http://www.foundry.org/2008/01/16/what-should-congress-do-to-avoid-a-recession/
 lobbied to undercut United States efforts: http://news.yahoo.com/s/afp/20080117/ts_afp/irannuclearpoliticschinaus_080117090149
 curtailing their research: http://www.foxnews.com/story/0,2933,319028,00.html
 drug traffickers and radical Islamists: http://www.afp.com/english/news/stories/080117065240.7bnn58ov.html
 exempted the US Navy: http://seattlepi.nwsource.com/local/347644_sonar17.html?source=mypi
 General David Petraeus: http://news.yahoo.com/s/afp/20080116/wl_mideast_afp/iraqunrestiranus_080116183930
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