Former White House Budget Director Peter Orszag stated today what I've been predicting a few weeks ago. That is there won't be any deal made between Congress and President Obama to extend the Bush tax cuts for at least another two years. On top of that, Orszag stated that the White House and Congress will delay spending cuts as well this year. That's not surprising because the president, all 435 members of the House of Representatives, and 1/3rd of the Senate are up for re-election this year. There's no way they'll use the axe to stop wasteful spending because they're thinking about their own political careers. They'll use spending gimmicks to entice the same voters who are most likely to re-elect them. Consequently, tax hikes and "spending cuts" will kick in after the election. I personally don't project any spending cuts, but there will be all sorts of tax hikes which will drain the American economy and place us in an even worse tailspin.
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