The administration’s central revenue proposal — limiting the value of affluent Americans’ itemized deductions, including the one for charitable giving — fell flat in Congress, leaving the White House, at least for now, without $318 billion that it wants to set aside to help cover uninsured Americans.Losing these sources of revenue means that it will be more difficult for Obama to push for a major expansion of government spending, and this in turn reduces the threat of significantly higher tax burdens in the future.
Lawmakers of both parties have warned against moving too quickly on a plan to auction carbon emission permits to produce more than $600 billion.
10 Senate Democrats joined Republicans this month in pushing to protect more wealthy American families from the reach of the federal estate tax.
In a separate article, the NYT reports that, contrary to his campaign promise, Obama does not plan to reopen negotiations on NAFTA. This may be the main positive outcome of the recent Latin summit conference in Trinidad. Anything that preserves free trade agreements is a good thing for all economies.
These are political "green shoots" since they reduce the policy risk facing the economy.