No. of Recommendations: 7

Not labeling this off topic, because it isn't. The House has set new "pay as you go" rules for budget. This isn't like Bush proclaiming a balanced budget 4-years after he leaves office with creative accounting. If this sticks and the Senate goes along, the implications are enormous. The drop-dead date for tax cuts of 2010 will happen, even if they do try to keep the more popular tax cuts. Doing something near term to keep AMT from hitting the middle class will probably require tax increases elsewhere, which will be very difficult with Bush. If they also succeed in including Iraq in the general budget, which I think they will, there will have to be cuts to cover that, and contrary to popular belief, there aren't a whole lot of easy cuts, even if "earmarks" take a hit.

Of course, at least for us reality based folks, getting the deficit under control should cut back on demand for debt financing, which would mean lower interest rates, all else being equal.
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