In today’s Wall Street Journal, Glenn Hubbard offers a compelling case for keeping the Bush tax cuts in place. Here’s his closing:
Deficit reduction is a legitimate object of concern. But if this concern is the dominant one, I am aware of no serious analysis that would claim smaller costs to the economy—in lost output and foregone economic growth—of raising capital income taxes as opposed to increasing other taxes or limiting deductions or reducing federal spending.
If President Obama is interested in promoting growth now and in the future, he should commit to retaining the low tax rates Congress passed in 2003.
