Could well designed stimulus help avoid tax debate?

The debate over whether or not to extend the Bush tax cuts raises an interesting question in my mind. I wonder if a better timed and infrastructure-focused stimulus would have helped to avoid this debate?

Applying a conservative multiplier of 2.5, approximately $2.5 trillion dollars of economic growth should have been generated since the stimulus was signed into law in February 2009. Without increasing the tax rate, additional tax revenues could have been generated without having to let the Bush tax cuts expire.

Unfortunately the politics of no from the right and the politics of corporation bashing and disingenuousness from the left have left little room for being rational and focused on optimal taxation solutions.

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
This entry was posted in Budget, Economy, Political Economy, stimulus, taxes and tagged , . Bookmark the permalink.

2 Responses to Could well designed stimulus help avoid tax debate?

  1. Matt Lykken says:

    We need to get away from raising versus lowering and thinking asbout how to make our tax system more economically efficient and more beneficial to middle-class workers. See http://www.associatedcontent.com/article/7942051/the_tax_reform_hearings_are_missing.html?cat=3

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