Here is thetranscript of my Monday conversation with Stanford economist John Taylor on last week’s budget deal. Taylor’s two stints on the Council of Economic Advisors and as Undersecretary of the Treasury as well as the esteem in which he is held across the political spectrum make him an excellent judge of various “big deals” when they are announced. The House GOP should be emailing his remarks to the critics of the deal, which include me, as the best defense yet offered.
Note though that Taylor is opposed to the various tax hike proposals the president and the Gang of Six are likely to unveil. The country cannot tax itself out of the fiscal crisis.