Speculation on tax issues from MarketWatch. Policy analysts say sweeping tax-law changes are unlikely in the next two years, no matter whether Democrats gain seats or Republicans retain control in the upcoming election.

Now that only a lame-duck portion of it remains, we are now in a position to begin to assess the 109th Congress. Per the Thomas Mann and Norman Ornstein article that my colleague Matt points out below: “with few accomplishments and an overloaded agenda, [the 109th Congress] is set to finish its tenure with the fewest number of days in session in our lifetimes, falling well below 100 days this year.” At the same time, as the Washington Post reports today, the House passed 165 bills… in the last week alone. That’s more than one for every threatened incumbent, and then some.

...of reports that make the free lunch-"tax cuts pay for themselves" crowd look like the circus sideshow that they are. Last week, CRS released a report* on the revenue effects of the "2001-2004 tax cuts." It found that: Given the positive and negative effects, it is likely that the feedback effect in the very short run would be positive, but at the current time as the stimulus effects have faded and the effect of added debt service has grown, the 2001-2004 tax cuts are probably costing more than their estimated revenue cost. So, there you have it - again: Sorry, kids, no free lunch.

Kevin G. Hall, writing for McClatchy, does a nice job of describing the tricksyness with which federal budget numbers are bandied about. From the voice of Pollyanna to that of the bard of the Apocalypse, St. John, talk of the budget elicits a whole range of degrees of concern. To wit: Pollyanna: