Stupid Is As Stupid Says

Bloomberg has a story on the Senate's vote on a tax cut package that clears the way for a conference committee to extend the dividend and capital gains tax cuts, which are currently set expire in 2008, to 2010. The article is nothing exciting except for a quote from Sen. Max Baucus (D-MT), who expresses his hope that the tax cut extension won't be included in the final conference bill. The Montanan actually said "it will make no sense to focus on capital gains and dividends issues that won't affect a single American until 2009."

Now I don't actually think that Sen. Baucus is really that stupid, but rather he is ignoring what he knows to be true in order to present an alternative analysis that is consistent with his party's legislative goals. While I have observed that this behavior, a form of dishonesty, is commonplace among elected officials (points for subtle understatement?), I nonetheless believe in the principle that people should be ridiculed for what actually comes out of their mouth if warranted.

So, until such time as courses in basic corporate finance are available to Montanans, let's help the Senator out. All together now...

Net...Present...Value...of...Future...After...Tax...Cash...Flows.