KeithHennessey.com

U.S. real Gross Domestic Product grew at an annual 1.6% rate in the second quarter of this year.

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.

Dr. Laura Tyson and I will be live on KQED radio’s Forum for an hour today, beginning at 9 AM PDT / noon EDT. You can listen live here.

On the heels of Dr. Christina Romer’s announced resignation, here’s an explanation of the different positions that make up the President’s economic team, and in particular the different roles of the heads of the National Economic Council and the Council of Economic Advisers.

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.