Deal on Tax Cut Extension

House and Senate Republicans have agreed to extend the dividend and capital gains taxes to 2010. The only thing that bothers me is that tax increases are forever, while tax reductions must be re-voted every few years. Some journalists still recite the old line that the tax cuts will "cost the treasury revenue." (They missed the news that tax revenue actually rose 14% after the last tax cuts.)

The tax agreement would cut revenue to the Treasury by $90 billion over the next five years, but other measures would raise about $21 billion, for a net loss to the Treasury of about $69 billion.