Analysis Deficit-We should consider what we're buy along with the tax cut price tag.

Wall St Journal ^ | May 8, 2003 | R. GLENN HUBBARD

[SJackson]

Would you pay $15,000 for a car? Most of us would consider the question odd: It depends on which car. In the current tax cut debate, 10-year revenue costs of $350 billion and $550 billion are being debated, but the question should be: for what? President Bush's tax cut was designed to provide short-term growth insurance and enhance long-term growth. Does it deliver?

[prairiebreeze]

bookmark for later read

Prairie

[Democratic_Machiavelli]

This is one of the suggestions in The Indebted Society by Medoff and Harless. By making profit more desirable than debt, managers in companies feel they can spend more on research and possibly even training for employees. Employees get more job stability and stop relying on credit cards for survival. Because citizens are able to pay more in taxes, more revenue can be brought in by the government to pay off the national debt.

At least, that's the ideal. The authors have several different alternatives, many of them more realistic.

Thanks for posting this article. I haven't heard anything about this part of the tax cut.