Congress' effort to pass a jobs bill stalled in the Senate on Wednesday. In part, the upper chamber tied itself into Senate-like knots thanks to the usual partisan wrangling. But the proposal has also rekindled a debate over the need for more economic stimulus versus fear of rising deficits. This argument is important and healthy, but wildly overblown in the context of such a small and poorly-targeted bill.

I wasn’t going to write about Congress’ latest effort to continue scores of soon-to-expire special interest tax breaks. But there is something about the joint Ways & Means/ Senate Finance Committee bill’s Orwellian title: “The American Jobs and Closing Tax Loopholes Act” (AJACTLA) that makes it impossible to ignore.

One cheer for the House. In what’s become a dreary annual dance, it agreed to extend, for yet another year, 48 special interest tax breaks worth $23 billion in 2010-2011. Why the cheer? At least it is proposing to—sort of– pay for them.

For another take on my debate with George Yin on whether temporary tax breaks are a good idea George) or not (me), take a look at economistmom, the new blog by former House Ways & Means Committee chief economist Diane Lim Rogers. She’s got a great anecdote about a conversation with a committee member during [...]

Howard Gleckman continues to think that temporary tax cuts are no better than permanent ones from the standpoint of enhancing political accountability and fiscal restraint (“Tax Extenders and Fiscal Restraint,” May 22, 2008). So here’s some data.

It was good to hear from University of Virginia tax professor and former Joint Tax Committee boss George Yin. George argues that temporary tax cuts are a good idea because they force Congress to consider the costs and benefits of these measures before renewing them. This reckoning, he says, imposes more political accountability on the system, not less.

Howard Gleckman’s criticism of temporary legislation (“The Tax Extenders Ride Again,” May 20, 2008) overlooks the impact of Congressional budget rules. When such rules are considered, a change in law on a temporary (rather than permanent) basis increases political accountability and arguably enhances fiscal restraint.

The other day, the House Ways & Means Committee routinely approved dozens and dozens of tax breaks. Hardly anyone even noticed.