Deficit Expansion Act

Republicans have a history of calling things what they're not (think Healthy Forests, Focus on the Family). Maybe Democrats should start calling things what they are.

Congressional Republicans reached tentative agreement on a $70 billion tax-cut package that would extend tax breaks on investment income for two years, a Republican U.S. Senate aide said on Wednesday.

Negotiators are working on a second tax bill that would extend popular tax breaks for businesses such as the research-and-development tax credit, the aide added.

The bill that was negotiated by Republicans in the Senate and House of Representatives would extend through 2010 the 15 percent tax rate for capital gains and dividends that was the centerpiece of Bush's 2003 tax cut. That tax break currently is set to expire at the end of 2008 and the top tax rate on long-term capital gains would revert back to 20 percent, while dividends would be taxed the same as other income.

But remember, shrinking government tax receipts is going to halve the massive deficit George Bush created with his last round of tax cuts. Don't let common sense mislead you, it will. You'll see.