Extending the Bush tax cuts: Human nature?

Jena McGregor
WashPost

Of all the coverage of the debate over whether or not to extend the Bush tax cuts, and there is plenty today, given that the White House appears to be quietly giving ground to Republicans on extending the tax cuts temporarily, today's money quote comes via Howard Kurtz over at The Daily Beast. He quotes former President George W. Bush communications director Dan Bartlett as saying, "We knew that, politically, once you get [a tax cut] into law, it becomes almost impossible to remove it. That's not a bad legacy. The fact that we were able to lay the trap does feel pretty good, to tell you the truth."

Ouch. Nothing like leaving your successor with a thorny problem to solve. But while the admission is disturbing--setting time bombs for your successor, whatever party they may be a member of, hardly seems like an act of leadership--the other sentiment in Bartlett's statement is worth exploring, too. He's right: When it comes to benefits, leaders should be careful what precedents they set, and what perks they hand out. Taking them away later is much easier said than done.

I'm sure a behavioral economist could show us the research on what this says about human nature. Something is introduced as a temporary benefit, a reward during surplus times, and yet we seem to take it for granted, getting angry when it's taken away rather than thankful while it lasted. One need look no further than Wall Street to see this phenomenon at work. So-called "bonuses" became a complete misnomer as, over time, a once-a-year gift for a year of profitable growth became an ingrained way to send compensation packages ballooning into the stratosphere. Talk about an entitlement culture.

(More here.)

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