Toxic Labels

by digby

It looks like the Fiscal Zombie has made its way into the White House. (Or perhaps, more precisely, he’s been let out of the closet.)

The White House is in the early stages of considering what bigger moves it might make for next year’s budget. The Office of Management and Budget has asked all cabinet agencies, except defense and veterans affairs, to prepare two budget proposals for fiscal 2011, which begins Oct 1, 2010. One would freeze spending at current levels. The other would cut spending by 5%. OMB is also reviewing a host of tax changes. The President’s Economic Recovery Advisory Board will submit tax-policy options by Dec. 5, including simplifying the tax code and revamping the corporate tax code. White House Chief of Staff Rahm Emanuel is pressing for substantial spending cuts to go with any tax increases to try to avoid the “tax and spend” label that has bedeviled Democrats, according to administration and congressional officials.

Yeah, because the Republicans will completely at a loss for criticism if the Democrats cut spending in the middle of an economic crisis. They’ll will coast to an easy victory if only they don’t have the “tax and spend” label. Al Gore proved that in 2000.

Is Emmanuel really considered a political genius? If so, you wouldn’t think he’d be listening to Amity Schlaes.

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