Odds of Tax Cut Extension Keep Growing
Last week we wrote that the odds were growing for an extension of all the major income and investment tax cuts enacted in 2001 and 2003.  Within a couple of days, the Associated Press ran a story on growing support for the position among Democrats on Capitol Hill.  Now we are getting even more evidence in that direction.  In today's New York Times, Peter Orszag, who was until recently President Obama's budget chief, came out in support of a two year extension of all the tax cuts, through the end of 2012.  While we disagree with his reasoning in support of the tax cut – he wants higher taxes starting in 2013 – we see his article as a signal that an extension keeps getting more likely.  What he is saying publicly today is surely something the Obama Administration has been considering internally for some time.
Posted on Tuesday, September 7, 2010 @ 10:22 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.