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Taylor: Why Permanent Tax Cuts Are the Best Stimulus
Economist's View —
... Why
Permanent Tax Cuts Are the Best Stimulus, by John B. Taylor, Commentary, NY
Times: The incoming Obama administration and congressional Democrats are now
considering a second fiscal stimulus package, estimated at more than $500
billion, to follow the Economic Stimulus Act of 2008. As they do, much can be
learned by examining the first. ...
Competing Alliteration
Greg Mankiw's Blog —
Instead of fiscal stimulus that is temporary, targeted and timely, John Taylor suggests that it be permanent, pervasive and predictable.
View from 'On High'
Lawrance G. Lux —
... I might as well introduce all the articles with which I disagree to some degree. John Taylor assumes that the Bush Tax Cuts were actually beneficial without Proof, and his thesis states that We should continue like behavior rather than expensive Stimulus measures. I would first like to say that the necessity for Stimulus developed under the system which he advocates. I truly believe that the Bush Tax Cuts supplied an excess amount of Investment Cash to the Markets, and subsequent efforts to absorb the Cash reserves brought the bad Lending practices to the fore. Funds which ...
Tuesday's Daily News
Club for Growth —
THE DAILY NEWS
Why Permanent Tax Cuts Are the Best Stimulus - John B. Taylor, The Wall St. Journal
Citi's Taxpayer Parachute - Wall Street Journal Editorial
'Jolting' the Economy - Thomas Sowell, Real Clear Politics
Anatomy of a Meltdown - John Cassidy, The New Yorker
A Toxic Mix Of Regulation And Subsidy - Richard A. Epstein, Forbes
Obama's Pro-Growth Economic Team? - Lawrence Kudlow, Real Clear Politics
Roots of Defeat - Patrick Ruffini, ...
Conservative crisis desperation
Paul Krugman —
So we’re having a crisis, reflecting the policy failures of the past 8 years. But the usual suspects insist that the crisis is all the more reason to persist with those policies — indeed, make them permament. Thus, John Taylor — a very good economist, when he wants to be — insists that we must respond to the economy’s temporary weakness with a permanent tax cut. Let us reason together. Does it make sense to let one recession dictate tax policy in perpetuity? What happens if there’s a boom; can we increase taxes (no, because then the cut wouldn’t have been permanent.) What if ...
The Return of Rubinomics
EconoSpeak —
... Street over the long-term, we are serious about long-term fiscal restraint. We might also give tax cuts to liquidity constrained people such as the working poor but raise taxes on those who are not liquidity constrained – such as Bill Gates and Warren Buffet. In other words, short-term fiscal restraint to actually REDUCE national savings with some assurance to Wall Street that once this recession is over, we restore a commitment to increasing savings and investment. While John Taylor seems confused about this one, Paul Krugman gets it: Thus, ...
"Woodward and Hall Analyze the Financial Crisis and the Recession"
Economist's View —
... of policies in terms of bang for the buck. Bang is the amount added to
GDP and thus to employment and buck is the amount of government money
involved, or, equivalently, the addition to the government deficit. By this
measure, spending stimulus comes out ahead of tax-cut stimulus. The spending
automatically enters GDP and may have some second-round effects as well. Some
part of a tax cut goes into saving, so the immediate increase in GDP is probably
smaller. (John
Taylor’s evidence) Earlier this year, the federal government used a tax-cut
stimulus that ...
Fiscal Stimulus: Permanent, Pervasive, Predictable versus Temporary, Targeted and Timely
CARPE DIEM —
... ~Stanford economics professor John Taylor, in yesterday's WSJ On Greg Mankiw's blog, others have suggested that the fiscal stimulus will be: a) pointless, ...
Pointless, Political, and Pork-filled
Cato @ Liberty —
... Instead of fiscal stimulus that is temporary, targeted, and timely, John Taylor suggests that it be permanent, pervasive, and predictable. ...
Keynesian stimulus, NOT
Management R&D —
... HOWEVER, last summer's rebates failed to have the predicted effect. In the graph below, the increase in disposable income failed to raise consumption. The Keynesian stimulus failed becaise consumers perceived the tax cuts as temporary and decided to save rather than spend. ...
Starve the Beast (Recession Edition)
Economist's View —
... John Taylor plays Starve the Beast. First, he calls for
permanent tax cuts to stimulate the economy, tax cuts that will make the
long-run budget picture worse. ( ...
