Skip to comments.Economists Agree: Extending Tax Cuts Aids Economy (Duh)
Posted on 08/07/2012 3:47:29 AM PDT by Kaslin
Speaker of the House John Boehner has recently touted a list of 88 economists who warn against the expiration of tax cuts on high-income earners. These economists came together from some of the country's top universities, think-tanks and business organizations to write that the expiration of the tax cuts pushed by President Obama "will hurt the economy and must be stopped before it goes into effect."
Speaker Boehner also touted a study from Ernst and Young conducted for the National Federation of Independent Businesses that found that allowing tax rates to go up on high-income Americans could destroy up to 700,000 jobs.
The Ernst & Young study also predicted that economic output would be reduced by $200 billion next year, investment would fall and would lead to a 1.8% reduction in American wages.
Democrats used to promote temporary tax cuts distributed across a wide range of income levels as "stimulus" that could aid an ailing economy. As the fight over these tax increases have proven, that's only when they're not fighting class warfare against "the rich."
Back in 2010, the CBO estimated that extending all the tax cuts would prove a lot more helpful to the economy than passing cuts for everyone but the top rates. Depending on their model, in the short term, the top rate cuts would give the economy a 30-50% boost over what would have been estimated otherwise.
Furthermore, as CBO director Doug Elmendorf's chart reveals, passing permanent tax cuts would be even more helpful to the economy in the short-term - though it's important to point out that in the medium and long term, the effects of increased government debt would become a significant drag on the economy.
If the rationale for extending these tax cuts is to boost economic output in the short-term, it makes little to no sense to exempt rate increases for upper-income Americans.
But the Democrats have never been ones to adhere to common sense.
How will he justify the change of mind??
Simple...We're not building "that" fast enough.
I’m now thinking the plan may be to go after Romney and say that Mitt is typical big business....he made tons of money....paid little taxes and could have created millions of jobs but he didn’t...he hoards it, spends it on himself!!!!
-—— obama can only show destruction and lies———
Au contraire mi Amigo........ ( a little frog/mex lingo) he can put out for show the communities he organized. That would be Chicago where the organizees kill each other daily for sport. On weekends they really get going and murder more of their neighbors than are killed in the real war in Afghanistan.
On second thought that might fall under destructive and that means it is not constructive and therefore a lie
I see that we are on the same frequency... good thing mike wallace and kenneth are not listening! ;-)