All over Washington D.C., top Republicans and Obama administration officials are running around declaring that the tax cut deal that was just passed will save the U.S. economy. But is this even partially true? Of course not! Mostly, what the “tax cut deal” does is keep tax rates exactly where they already are. Now, many of us are extremely thankful that we will not be paying higher taxes, but the truth is that if these tax cuts were going to “save the economy” they would already be saving it. Yes, this tax cut deal will provide a minor short-term stimulus to the economy, but it will also add $858 billion (some say closer to $1 trillion) to the projected federal budget deficits over the next two years. You see, this tax cut deal contained “all candy and no spinach”. In other words, the tax cuts were not accompanied by corresponding spending cuts, and that is going to lead to big trouble in the long run. (Read More...)