The U.S. economy, taxes and politics

October 7, 2009

Bruce Bartlett, whom I cited last month in my post Fiscal responsibility requires higher taxes, is getting more ink.

BruceBartlett2 In today's New York Times Economic Scene column Partisan Economics in Action, David Leonhardt looks at Bartlett's approach to politics and taxes. Not to get into a big political debate here, but I was struck, again, by Bartlett's forthrightness.

"So much of what passes for conservatism today is just pure partisan opposition," says Bartlett, pictured there at right. "It's not conservative at all."

Bartlett addresses what he believes is conservative in a book coming out next week, The New American Economy. Leonhardt, whose word I'll have to take since I don't have an advance copy, says the former Ronald Reagan and Bush 41 adviser lays "intellectual groundwork for a Republican Bill Clinton — the politician who curbs his party's excesses."

"You can argue that this sort of reassessment should not make conservatives feel insecure," writes Leonhardt. "In many ways, they have won. Mr. Obama, like Mr. Clinton, has proposed raising the top marginal tax rate to a level that's lower than it was for most of the Reagan administration. Most Democrats now acknowledge the central idea of supply-side economics: tax rates matter."

Now about those taxes: As I noted in my previous post, Bartlett believes that high taxes are no longer the problem. In fact, federal taxes today are on pace to equal just 15 percent of gross domestic product, the lowest share since 1950.

Leonhardt elaborates on several of Bartlett's tax ideas, acknowledging readers are not likely to like all of them. But, he adds, you don't have to agree with all the specifics to see that Bartlett has a larger point:

"One of the country's two political parties has no answer to an enormous economic issue — the fact that the federal government cannot pay for its obligations. This lack of engagement is a problem, just as it was a problem when Democrats were saying that welfare was working, teachers' unions were always right and stagflation couldn’t happen."

Based on Leonhardt's assessment, I plan to pick up a copy of The New American Economy next week. I suggest that the publisher, Palgrave Macmillan, send a volume to every member of Congress, too.

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We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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