rssDueling Opinions on the End of the Bush Tax Cuts
Tuesday, August 17, 2010 at 5:37 pm
- 18 Comments
Mark Zandi, chief economist at Moody’s Analytics, in a New York Times opinion piece, suggests holding off on letting tax rates rise for wealthy Americans:
The president supports permanently extending the current tax rates for all except the highest-income households, while Congressional Republicans want the entire basket of cuts to be made permanent. The prudent middle ground would be to forestall any tax increases in 2011 and to phase in higher rates on upper-income households in 2012, when the economy will be on firmer ground.
The president’s plan would be taking an unnecessary gamble with the struggling recovery. Businesses have only recently begun to add jobs, and they appear to be a long way from hiring fast enough to reduce unemployment. Even under the best of circumstances, the unemployment rate will remain near 10 percent well into next year. The high rate of joblessness has cast a shadow on the collective psyche that will only worsen with higher taxes, raising the already uncomfortably high odds that the economy will suffer a double-dip recession.
In most times, raising taxes on the wealthy by such a modest amount has had little impact on the economy. But these aren’t most times.
Jared Bernstein, chief economist to Vice President Joe Biden, speaking with The Huffington Post, argues wealthy Americans can afford the tax increase:
“There are many good reasons not to extend the high-end parts of the Bush tax cuts having to do with the fear that a temporary extension could be made permanent,” Bernstein said. “What you are talking about — a $30 to 40 billion range in terms of adding to the deficit by extending the high end — could easily become $700 billion over a ten-year budget window.”
“I think the phase out suffers from that vulnerability,” he went on. “You are exposing yourself to the risk that it could be made permanent. The president, [Treasury Secretary] Tim Geithner have been very articulate on this point. If you wanted to, and we do, provide more help to the economy that is about the worst way you could do it. Those folks tend not to be liquidity constrained and therefore the kinds of multipliers associated with that type of spending are the lowest. So it simply is not good stimulus policy and it is not good budget policy.”
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18 Comments
Pingback posted August 17, 2010 @ 5:52 pm
[...] View full post on The Washington Independent [...]
Pingback posted August 17, 2010 @ 6:48 pm
[...] Dueling Opinions on the End of the Bush Tax CutsThe Washington IndependentThe president supports permanently extending the current tax rates for all except the highest-income households, …The case for a temporary extension of all the Bush tax cutsWashington Post (blog)Will Higher Taxes Mean Less Tax Revenue?FOXBusiness (blog)Farm groups urge continuation of Bush-era tax cutsCalifornia Farm BureauThe Atlantic (blog) -Times Record (blog) -Northwest Heraldall 45 news articles » [...]
Pingback posted August 17, 2010 @ 6:57 pm
[...] Dueling Opinions on the End of the Bush Tax CutsThe Washington IndependentThe president supports permanently extending the current tax rates for all except the highest-income households, …The case for a temporary extension of all the Bush tax cutsWashington Post (blog)Will Higher Taxes Mean Less Tax Revenue?FOXBusiness (blog)Farm groups urge continuation of Bush-era tax cutsCalifornia Farm BureauThe Atlantic (blog) -Times Record (blog) -Northwest Heraldall 45 news articles » [...]
Pingback posted August 17, 2010 @ 7:51 pm
[...] Dueling Opinions on the End of the Bush Tax Cuts « The Washington … [...]
Pingback posted August 17, 2010 @ 8:05 pm
[...] possible. …The case for a temporary extension of all the Bush tax cutsWashington Post (blog)Dueling Opinions on the End of the Bush Tax CutsThe Washington IndependentWill Higher Taxes Mean Less Tax Revenue?FOXBusiness (blog)California Farm [...]
Pingback posted August 17, 2010 @ 9:01 pm
[...] Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts …Huffington Post (blog)Dueling Opinions on the End of the Bush Tax CutsThe Washington IndependentFOXBusiness (blog) -California Farm Bureau -Times Record [...]
Pingback posted August 17, 2010 @ 9:13 pm
[...] Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts …Huffington Post (blog)The Washington Independent -FOXBusiness (blog) -California Farm Bureauall 46 news [...]
Pingback posted August 17, 2010 @ 9:30 pm
[...] Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts …Huffington Post (blog)The Washington Independent -FOXBusiness (blog) -California Farm Bureauall 46 news [...]
Pingback posted August 17, 2010 @ 9:57 pm
[...] Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts …Huffington Post (blog)The Washington Independent -FOXBusiness (blog) -California Farm Bureauall 46 news [...]
Pingback posted August 17, 2010 @ 11:28 pm
[...] Bernstein, White House Economist, Throws Cold Water On Bush Tax Cuts …Huffington Post (blog)The Washington Independent -FOXBusiness (blog) -California Farm Bureauall 46 news [...]
Comment posted August 17, 2010 @ 11:28 pm
Bull crap. tax the corporations higher, and the CEO's and executives, they their spawn do not add to the economy. Create higher fines for corporations that put the population in danger. Question: which corporation distributed the Bad Eggs? Close them down and let another company (a free standing company,) not a corporation come in an buy the Bad Eggs division of Crap Inc.. Give that new stand alone company the tax breaks. Saving 10 cents on a dozen eggs, is not worth a human life. look at what Monsanto has done to our farms, Pres. Obama make a damn decision and change the corporate take over of American. If control of our lives is based on corporate greed, then we will fight back. Better you leave the Middle class alone, and let the TO BIG TO FAIL “FAIL” Pres. Obama if you keep sitting on the fence, all your going to get is a picket up you rump…
Pingback posted August 18, 2010 @ 12:35 am
[...] wants to let the tax cuts for top earners expire while continuing the …Washington TimesDueling Opinions on the End of the Bush Tax CutsThe Washington IndependentFOXBusiness (blog) -California Farm Bureau -Times Record [...]
Pingback posted August 18, 2010 @ 1:06 am
[...] wants to let the tax cuts for top earners expire while continuing the …Washington TimesDueling Opinions on the End of the Bush Tax CutsThe Washington IndependentFOXBusiness (blog) -California Farm Bureau -Times Record [...]
Comment posted August 18, 2010 @ 2:43 am
where is my other post????
Did I hear some say something about our green jobs in the grate notion of the U.S.A
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By Jeremy Hsu
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http://www.popsci.com/technology/article/2009-1…
China tops U.S. in windpower growth
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http://www.google.com/search?hl=en&rlz=1T4TSHB_…
Trackback posted August 18, 2010 @ 7:30 pm
WATCH: Karl Rove on Obama’s Midterm Strategy…
We cover the same subject but your aproach is intersting….
Trackback posted August 19, 2010 @ 6:34 pm
Obama’s anti-growth strategy…
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Trackback posted August 20, 2010 @ 9:57 pm
Bush Abandons Free Market Principles…
I found your entry interesting thus I’ve added a Trackback to it on my weblog :)…
Trackback posted March 24, 2011 @ 4:51 pm
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