What If

clipped from www.qando.net However, deficit hawk or no, we have Obama touting his tax increases and href="http://www.qando.net/Details.aspx?Entry=9537" target=new>Barney Frank saying taxes need to be increased as well. Any guess which group is most likely to prevail? Any guess as to why there is a great sell off going on on Wall Street right now? James Pethokoukis says: In 1980, anxious Americans voted for lower taxes and smaller government as the solution to the nation's economic ills. Would the opposite prescription also have led to a 25-year economic boom? With Obamanomics, voters may be about to play a fascinating game of "what if." Except it's for real. When Goldman Sachs ran a sophisticated economic simulation of the effect of a total repeal of the Bush tax cuts, the computer predicted a 3 percentage-point drop in GDP. Maybe investors fear that with perhaps a trillion-dollar budget gap ahead, revenue-hungry Dems will raise taxes further than Team Obama is suggesting—right into the teeth of a weak economy. What if, indeed.