Tax Cuts For The Poor Becoming Political Liability For Obama

Deficit hawks are on Obama's case about his tax credits to low-income families.

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The president wants to extend two tax credits for lower-income families that were supposed to be temporary products of his stimulus. Normally tax cuts for the poor would be the perfect bipartisan policy. But as further evidence that, contra Dick Cheney, deficits do matter politically, Obama's move is getting bipartisan criticism. The Post reports:

Deficit hawks are appalled. Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget, called the move "outrageous" at a time when the nation is facing record budget deficits and the national debt is soaring toward a 50-year high. In addition to breaking Obama's pledge to pay for his policies, she said, it undermines confidence in Democrats' claim that the $787 billion stimulus package was truly a temporary measure aimed solely at reviving the slumping economy.

My thoughts:

Obama might not be breaking his pledge about deficit spending, exactly.  He might just be extending a popular program in order to placate voters and ease the pain when the big tax increases—like a new VAT—do come along.