KeithHennessey.com

In addition to providing the deficit effects of the health care laws, CBO should have told lawmakers what the separate effects would be on spending and on taxes. The new CBO baseline document provides this information, although five months too late to affect any votes.

In his column yesterday, Dr. Paul Krugman argues for raising the top marginal income tax rates on January 1. His column is useful because it encapsulates most of the Left’s arguments.

The president has two challenges: How does he convince enough congressional Democrats to support a deal they won’t like because it doesn’t raise taxes, and how does he mitigate the attacks from those on the left who deny a serious and immediate problem even exists?

The whole point of a PAYGO principle is to prioritize deficit reduction over other desirable policies. If you apply a principle to block the policies you don’t like but exempt yourself from it for policies that you favor, then it’s not much of a principle.

I have an op-ed running in today’s New York Daily News. Here is a footnoted version of it.

Spendthrift teenager Billy Jones and his skeptical sister Suzy discuss the Social Security Trustees Report.

I agree with Secretary Geithner Secretary that we need to restore America to a pro-growth tax and fiscal policy. I just don’t think that government spending of 24% of GDP, budget deficits averaging 6% of GDP, and raising taxes on successful small business owners during a weak recovery are that policy.

Irresponsible Billy Jones is once again spending more than his allowance. He is running up huge bills on the credit card his parents gave him. His parents cut his allowance nine and then again seven years ago and now Billy’s sister Suzy is debating some family friends whether a scheduled automatic increase in Billy’s allowance should be allowed to take effect January 1.

I wonder if the President’s selection of Mr. Lew in part reflects a view among Team Obama that they may be dealing with a Republican House Majority next year.

Today the President announced his intent to nominate Jack Lew as Director of the Office of Management and Budget. I support Mr. Lew’s nomination.