Higher tax rates mean a lower budget deficit. According to the Tax Policy Center, over the course of a decade Obama's plan would result in a national debt $1.2 trillion smaller than you would get under McCain's plan. Less government borrowing ultimately means lower interest rates and more private investment. This positive effect may well outweigh the blow to growth and jobs from weaker work incentives. Full Story »
Posted by Kaizar Campwala
I am always grateful when a journalist states the obvious. In my experience, it's somewhat rare. But tax cuts have not worked to stimulate the economy so far. In fact, just the reverse. We are losing savings, personal equity, and jobs at a great rate. Just this last quarter, the downturn even finally hit high wage earners. So they now get to suffer along with the rest of us. All tax breaks are doing is borrowing against our children's future--and rewarding people who don't need it. It's nonsense and I'm glad Mallaby had the courage to say so.
