The tax cuts are being reconsidered because the Democrats are pansies who buckle at every rabid populist attack by the Republicans, not because they have some intrinsic value. A lot of "very bright economic types" have labeled them as a disaster, especially when they cost billions of dollars of revenue.
Tax cuts whether they increase or decrease near term revenues UNIFORMLY fuel recovery from recession. It has worked every single time it has been tried. Most if not all times the resulting economic growth actually INCREASES net revenues to the gov't.
The problem has been that as soon as the pressure is off politicians of both parties have started spending sprees again.
THE ONLY way to resolve our budget and economic problems is to significantly reduce gov't expenditures as a percentage of GDP. The gov't DOES NOT produce wealth. Almost every employee of the federal gov't is a drag on the economy. I'm not suggesting some functions are not necessary... only that they do not create wealth and should be done as efficiently as possible. Most wealth transfer "welfare" programs are not only a net loss to the economy but generate residual loss by their effect on the population. For instance people not taking available jobs because they aren't as good as their past jobs and then getting extended unemployment. Those people could be contributing to the recovery, producing wealth, and paying taxes. Instead... they aren't.
Wealth production is what a country strong... and ironically the best help for the people liberals claim to be representing. Both sides have a long history of passing budgets that increase at a greater pace than the nation's economy. Until the percentage of gov't spending is decreased to less than the rate of economic growth for an extended period... you will never be able to tax enough to balance the budget.
Obama's been a far sight better than Bush, but he's failed in the sense that he didn't take the stimulus far enough, as people like Krugman and Volkler advocated in the first place. Basic economic sense states the government spends in an economic downturn and conserves in an upswing.
Pure, absolute idiocy. Obama is incompetent in pretty much every regard. He has failed economically. He has failed in foreign policy. He failed in the Gulf. The man is so far over his head it isn't funny. The best thing he's done for the country and his only proven competency is going on vacation.
NONE of the stimulus went to things that would have both an immediate and residual economic benefit. It takes decades to realize pay back from infrastructure spending. Most of the money went to one time expenses that have no real economic value... studies of frogs, restoration of obscure park service sites, etc.
The only thing a bigger stimulus would have accomplished is a larger debt.
A tax cut to investors of half that amount would have us firmly in a job creating economy right now. The trillions in investment capital currently sidelined would have been poured into the economy if it weren't for Obama's tax philosophy and the stupidest bill in US history- Obamacare.
If you want a country like the one your ideas will yield... please move to Italy, Spain, or Greece and enjoy the product of those ideas with them. Please stop trying to ruin THIS country for the rest of us.