This morning Cornell University Economics Professor Steven Kyle said that the Bush tax cuts should end for the wealthy and middle class alike.
“Let them [the tax cuts] all expire. My view is that the situation was not broken in the year 2000. They should not have passed the massive tax cuts at that time.”
Kyle thinks that there are two big problems that we are looking at right now, “one short run, one long run” as he put it.
“The short run is that we are in danger of sliding back into a double-dip recession,” said Kyle.
To counter the threat of a double-dip, Kyle would like to see a stimulus or a jobs bill put in place right now.
As for the long run, Kyle said, “We need to convince the markets that we are serious about fiscal stability in the long run… and just letting the tax cuts expire would do that easily.”
Charles Payne fired back at Professor Kyle, saying that he thinks the “exact opposite” is the case.
“I think the markets are falling apart because they anticipate this gigantic tax increase just in the middle of a recession that doesn’t want to go away,” said Payne.
Watch the rest of the fireworks at foxbusiness.com!
The biggest tax increase in U.S. history is less than five months away.