Senate Drops Tax Cuts, Spending Cuts

The GOP jellyfish in the Senate have acquiesced again - not to push for spending cuts or the extension of Bush's income, capital gains and dividend tax cuts.

This means that we will be going into 2007 with major uncertainty as to whether tax rates increase dramatically the following year. I don't think the markets are going to like that very much, particularly if Democrats can manage to win either the House or the Senate in the fall.

The GOP has disappointed conservatives again.