Friday, May 12, 2006

It's all in the name and the definition 

The Senate passes the The Tax Increase Prevention and Reconciliation Act. The WaPo's report includes this analysis:
But with interest rates rising, the dollar falling and the budget deficit stuck at around $300 billion, tax experts warn that the tax code Bush has transformed may not survive to its Dec. 31, 2010, expiration date and that Congress may have to step in again because tax revenue will not meet all of the government's needs.
Fight that word "needs". There are no needs. There are wants and preferences available at alternative prices. Otherwise demand curves are vertical, and we know that's not true.