Dean Baker, co-founder of the Center for Economic and Policy Research, says Romney economic advisers Kevin Hassett and Glenn Hubbard got it all wrong in a Washington Post opinion piece published Wednesday.
Lowering marginal tax rates, as Hassett and Hubbard suggest, would do nothing to boost the economy, Baker writes in a commentary on econobytes.
“In short, it is difficult to see how the tax policy being promoted by Governor Romney will have much of a positive impact on investment and growth, especially if it is accompanied by further cutbacks in government spending. While the Obama administration’s stimulus policy was clearly inadequate to make up for the shortfall in demand created by the collapse of the housing bubble, Governor Romney’s plan is not likely to do any better,” Baker says.
No surprise that the founder of a progressive think tank would differ from the Romney camp. Nonetheless, Baker offers an interesting counterpoint to the Hassett-Hubbard suggestion that lower marginal tax rates are need to boost business investment.
Click here for Baker’s commentary.
Click here for the Hassett-Hubbard commentary.