I think history would predict otherwise. The so-called extension of the Bush era tax cuts will not be experienced as a cut, or even as the extension of a cut. It won’t experienced at all because it doesn’t change anything; it leaves things as they are. It releases no productive capital; it raises no ones income; it creates no new spending power or potential for investment. It simply doesn’t take any of those things away which is a good thing in itself only in the sense that it is not a harmful thing.
And if you want to argue that the extension removes uncertainty I think the President’s deficit commission just went a long way toward restoring whatever uncertainty the President’s wise and timely capitulation on the tax front may have resolved.
Anyway, whatever. Aren’t these the same Germans who were shrieking aloud about how debasing our currency is the wrong course of action? Now their central bank heralds the move as the restoration of a golden age of consumer spending to fuel anew German export production? Does something sound a little wrong to you?—because it sure does to me.
Yes, it removes some anxiety about the anti-business bias that the Gov't had been operating under. It injects some hope (along with the the large majority in the House) that from here on in the Gov't will loose some of those chains which have been causing business to hoard capital and not expand.
As far as the deficit panel, I see a recommendation there to lower corporate taxes. I don't see that as a negative for the unemployment situation.
It may usher in relatively more prosperity. In Germany.