Obama's Problem

Obama's Problem by MSW.  MGB: Obama's problem is as much the attempt to be too cute by half on tax policy, using it for political points rather than actually doing some compromise (say letting the top tax rate stay at 35%, letting the capital gains rate go to 25% as planned and meeting the GOP even a bit more than halfway by having the dividend rate also go to 25%, rather than stay at 15% or rever to 44.6% under current law.  The 15% rate, by the way, is impossible because Obama will never delay the new Health Care tax and there is no way the GOP can force him to.  His other problem was trusting Larry Summers et al on the issue of providing radical help to underwater borrowers.  Bold action in 2009 would have seen a much faster recovery.  His economic staff did not serve him well on this issue.