Noah Millman's pitch:
To make a difference in budgetary terms, we’ve got to put new, broad-based taxes on the table. So here’s a proposal for the new year: make the payroll tax cut permanent in exchange for the establishment of a new consumption-based tax the latter not to take effect until 2013. The next two years should feel like a sales-tax holiday, pulling consumption forward, which supposedly is what we need, and the payroll tax cut would put money into people’s pockets to spend during that same period. Of course, businesses would plan for an expected slowdown as a consequence of the tax hike to come in 2013 but any massaging of the business cycle would have that problem (which is why some argue it can’t be done). But the budgetary consequences of delaying implementation of such a tax for two years would be negligible over the long term, while laying down the marker that new, broad-based taxes are possible and that we need to levy at least some of them on consumption rather than wages or income would be worth far more than anything President Obama gave up in this deal.
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