Krugman makes another helpful assessment of the current state of economic policy in the US. You really don’t have to be a Liberal to see that a bone-skinny tax rate will ultimately cause a decline in basic public services (even if you take the money you just gave back to the rich and “spend” it on Medicare prescription drug benefits).
I’m not usually one to point the finger, but the Bush administration has to take the blame on this one. They need to recognize the way their grab for a few extra dollars for rich taxpayers is going to fundamentally hurt the rest of their constituents. True, they cannot be voted in again, so in some sense they have little to lose. But it seems that lately Bush has been slightly more willing to see different points of view. Perhaps he can do something about this before it becomes a devastating policy.