American Elephants

Glenn Hubbard of Columbia University has some sage words to bear in mind as budget talks approach. From his preface to Stephen Moore’s, Who’s the Fairest of Them All:

Not since the 1930’s has the issue of class warfare been more front and center in policy debate in Washington. President Obama is seeking higher tax rates on capital gains, dividends, estates, small business owners and “the rich.” He is not promising these ideas to enhance economic growth—but to advance the concept of fairness. If economic growth isn’t the goal, we shouldn’t be surprised if this agenda doesn’t guarantee it. But it is worse than that—unless it is reversed, this agenda will set in motion the largest tax hike in decades beginning January 1, 2013, and I know of no economic theory that would predict this policy will make America more prosperous.