The First Good Question on Tax Cuts

I caught a small part of Larry Kudlow's panel on tv today, where a panel of Democrats, Republicans and Steve Forbes talked about the budget and tax cuts. Sen. Byron Dorgan (D-ND) toed the standard line that we couldn't extend the capital gains tax cuts because "they cost too much."

Upon which Steve Forbes responded (paraphrasing), "What do you mean when you say the tax cuts cost money? Last year government revenues were up 15%. If you get a $10,000 raise and you spend $20,000, you have a spending problem, not a revenue problem."

Dorgan seemed a bit stunned and, of course, didn't have an answer. And it's the first time I have actually heard anyone question a legislator on the issue. Thank you, Steve.

And the good news is that Rep. Dreier (R-CA) said that the House has the votes to extend the tax cuts. Let's hope...