Tax cuts expiring, more unexpectedness on the way:

That’s “unexpected” in the Instapundit sense.

The story: Democrats happy to let taxes rise.

The Obama administration will allow tax cuts for the wealthiest Americans to expire on schedule, Treasury Secretary Timothy Geithner said Thursday, setting up a clash with Republicans and a small but vocal group of Democrats who want to delay the looming tax increases.

Mr. Geithner said the White House would allow taxes on top earners to increase in 2011 as part of an effort to bring down the U.S. budget deficit. He said the White House plans to extend expiring tax cuts for middle- and lower-income Americans, and expects to undertake a broader revision of the tax code next year.

The story unfortunately only talks about income taxes, which I — admittedly not an economist — don’t consider to be as important as the capital gains and dividends taxes that are also set to expire.

On the other hand, as we learned earlier this week:

…the Top 5 percent in income earners – those households earning $210,000 or more – account for about one-third of consumer outlays, including spending on goods and services, interest payments on consumer debt and cash gifts, according to an analysis of Federal Reserve data by Moody’s Analytics. That means the purchasing decisions of the rich have an outsize effect on economic data.

So: let’s create more uncertainty. Let’s create more of an impression that, like it or not, you’re going to have less.

We on the Right have been criticizing “stimulus” spending for quite a while. Those on the Left consider tax cuts to be spending. So: maybe this is their way of taking our criticisms to heart, and — in their warped view of the world — spending less?

(The TrogloPundit is leaving on a family camping trip later this morning. Please make his guest bloggers feel welcome in his absence.)

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