Filed under: Capitalism, Economy, Statism, Taxes | Tags: 300 Economists Agree, Don't Raise Taxes in a Recession, Growing the Economy - Creating Jobs
Austan Goolsbee is the new Chairman of the administration’s Council of Economic Advisers, replacing Christina Romer who has returned to U.C. Berkeley. This video explains the administration’s opposition to extending the 2001 and 2003 tax cuts. Dr. Goolsbee claims:
“If you ask objective economists and analysts around the country about what is effective you will find that everyone agrees that these giant tax cuts for very high income people are the least effective thing that we can do to get the economy growing.”
Mr. Goolsbee apparently limits his definition of objective economists to the White House’s economic team. But then there is Obama’s former Director of the Office of Management and Budget Peter Orzag, who, after he left the White House suggested extending what most people call the Bush Tax Cuts for the next two years.
The National Taxpayers Union, 362.000 members strong, sent a letter to Congress last month signed by 313 economists, including a Nobel laureate, in support of extending all the 2001 and 2003 tax cuts. Pete Sepp, executive vice president of the NTU explained:
“The issue of extending taxpayer relief laws is not a fringe issue. … There is a large body of the economic community saying this is your only option right now. This is by far your best option. Not doing it, even for some individuals, is what these economists would call an anti-stimulus.”
The Heritage Foundation’s Center for Data Analysis estimated the effects of the Obama tax hikes and reached a similar conclusion. Growth of the economy and of employment cannot be made by raising taxes. A number of Democrats agreed.
Mr. Goolsbee talks about how much it would “cost” the government, but it isn’t the government’s money. Nor does he estimate how many of those people making over $1 million are sole proprietors or partnerships or S Corporations filing as individuals. Probably a very significant number, and those are the “small businesses” that do a significant amount of the hiring. Smoke and mirrors once again from the White House.
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