New economic research shows why lower tax rates do far more to spur growth

[stillsexy]

Former Obama adviser Christina Romer and David Romer of the University of California, Berkeley, estimate a tax-cut multiplier of 3.0, meaning $1 of lower taxes raises short-run output by $3. Messrs. Mountford and Uhlig show that substantial tax cuts had a far larger impact on output and employment than spending increases, with a multiplier up to 5.0

multiplier???

interesting read:
why-spending-stimulus-failed

[IllTestYourGirls]

Interesting. A former Obama adviser and Berkeley study came up with that. The study also states the tax cuts need to be big for it to work. Not those silly tax rebates, but real tax cuts.

[Moose]

Thats just silly. We all know taking more money from the citizens who earn it is what spurs growth.

[fatfoo]

A higher tax rate would slow down growth of a business.

[PornMD]

Thats just silly. We all know taking more money from the citizens who earn it is what spurs growth.

Butbutbut...the government needs your money to continue fighting unnecessary wars.

[minicivan]

Butbutbut...the government needs your money to continue fighting unnecessary wars.

If they would cut taxes Obama could attack North Korea

[TheDoc]

Thank god we have one of the lowest tax rates in history right now then... must be one of the reasons things are turning around.

[minicivan]

http://online.wsj.com/article/SB1000...256446822.html

"By contrast, the last two major tax cuts?President Reagan's in 1981-83 and President George W. Bush's in 2003?boosted growth. They lowered marginal tax rates and were longer lasting, both keys to success. In a survey of fiscal policy changes in the OECD over the past four decades, Harvard's Albert Alesina and Silvia Ardagna conclude that tax cuts have been far more likely to increase growth than has more spending.

Former Obama adviser Christina Romer and David Romer of the University of California, Berkeley, estimate a tax-cut multiplier of 3.0, meaning $1 of lower taxes raises short-run output by $3. Messrs. Mountford and Uhlig show that substantial tax cuts had a far larger impact on output and employment than spending increases, with a multiplier up to 5.0.

Conversely, a tax increase is very damaging. Mr. Barro and Bain Capital's Charles Redlick estimate large negative effects of increased marginal tax rates on GDP. The best stimulus now is to stop the impending tax hikes. Mr. Alesina and Ms. Ardagna also conclude that spending cuts are more likely to reduce deficits and debt-to-GDP ratios, and less likely to cause recessions, than are tax increases."

[minicivan]

Thank god we have one of the lowest tax rates in history right now then... must be one of the reasons things are turning around.

edit.. waste of pixels

[X37375787]

Can't believe nobody figured out that this is the 1 millionth thread on GFY!

http://www.gfy.com/showthread.php?t=1000000

[PornMD]

Can't believe nobody figured out that this is the 1 millionth thread on GFY!

http://www.gfy.com/showthread.php?t=1000000

Oh shnap! Good eye - I completely missed it. Holy fuck that's a lot of threads!

[C H R I S]

1,000,000 Threads!!

[adonthenet]

The 1,000,000 Thread!

[YDG]

Congrats on posting the 1 millionth thread. You should get a prize

[TheDoc]

edit.. waste of pixels

You do realize the article you posted says more or less tax cuts isn't going to do a damn thing... Any other brilliant shit you wish to say?

[Altwebdesign]

tell that to the british government 40-50% tax rates my arse!

[stillsexy]

Congrats on posting the 1 millionth thread. You should get a prize

No one contacts me so far? How could I claim a prize from gfy? Im so excited.