Democrats and many economists were none too happy last week when President-elect Barack Obama’s transition team announced plans to include $300 billion in tax
“„Mr. Obama should scrap his proposal for $150 billion in business tax cuts, which would do little to help the economy. Ideally he’d scrap the proposed $150 billion payroll tax cut as well, though I’m aware that it was a campaign promise.
“„Money not squandered on ineffective tax cuts could be used to provide further relief to Americans in distress — enhanced unemployment benefits, expanded Medicaid and more. And why not get an early start on the insurance subsidies — probably running at $100 billion or more per year — that will be essential if we’re going to achieve universal health care?
“„Let me also suggest that there are stimulative effects of tax cuts. They’re not purely just give-aways. And so some balance of this, probably, is necessary. And whether or not you have it exactly right, I suppose each one of us might write it a bit differently, but the fact that there are some tax cuts in here, I think, are probably going to be necessary and probably the right step to be taking.
“„I’d like to see a bit more of the infrastructure than we have in this bill, but that’s just one person’s opinion. Overall, I think the president-elect has it about right.