Prometheus 6   

Into the Sunset
By PAUL KRUGMAN

Chutzpah, according to the classic definition, is when you murder your parents, then ask for sympathy because you're an orphan. But what do we call it if after you are placed with foster parents, you try the same thing all over again?

I ask this question in light of the tax-cut package the House is expected to pass today - a package that relies on exactly the same bait-and-switch tactics used to sell the 2001 tax cut. Since the scam involved in the 2001 tax cut remains one of the wonders of modern political economy, it is a measure of our leaders' contempt for the intelligence of the public - or maybe for the press - [p6: or maybe both] that they think they can use the same tricks a second time.

Here's the story: in 2001, as now, some swing senators insisted on a budget resolution limiting the size of any tax cut. No problem. House-Senate negotiators pushed through a huge tax cut anyway, "saving" several hundred billion dollars by making the whole thing expire in the 10th year. Among other things, this "sunset clause" implied that heirs to large estates would pay no tax if their parents died in 2010, but would face significant taxes if their parents made it into 2011. At the time I suggested that it be renamed the Throw Momma from the Train Act of 2001. [p6: plus he has quite a way with words]

Needless to say, the bill was silly by design. The administration didn't intend to compromise: it fully expected to get the sunset clause repealed in a future Congress. And President Bush was soon out there ridiculing the way the tax cut was programmed to expire, implying that the expiration date was imposed by scheming liberals, when in fact it was a trick perpetrated by his own Congressional allies.[p6: emphasis added]