A few weeks back one of my colleagues relayed an old joke to me which he was reminded of in the context of a fiscal policy issue we had been discussing. Except as soon as he said it, I immediately thought it was an even better analogy to the (then-)Bush(-soon-to-be-Obama) tax cuts. With that clue, let’s see if some of you readers can “see” this, too–solve the riddle: how is the joke below reminiscent of what President Obama proposes to do about the Bush tax cuts?
“Could you loan me ten dollars but just give me five? That way you’ll owe me five, I’ll owe you five, and we’ll be even.”
I will follow up with my answer later (just for dramatic effect). It will involve citing CBO reports, so don’t get your hopes up about it eliciting a lot of yuks from you.