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.
Columnists often lift quotes from political speeches to illustrate the point they’re trying to make. I’ve done it myself many times — it’s an excellent way to add emphasis to what you’re writing.
However, keeping the quote in context isn’t always easy. A case in point, David Moon’s column in Sunday’s News Sentinel. In the April 24 column, Moon used a quote from President Barack Obama to draw a contrast between Ronald Reagan’s tax reform policies and the current president’s financial reform policies.
The Obama quote — from a speech just about a year ago — has been widely repeated by the president’s political opponents who want to paint him as a socialist. Unfortunately, the quote is often taken out of context.
So far, Republicans have threatened a filibuster and otherwise kept the package of small biz tax cuts and financial aid from being considered. Kind of bizarre when you consider small business is generally considered a loyal supporter of the Republican Party.
Here’s hoping Tennessee Republicans Sens. Bob Corker and Lamar Alexander will break with the party and help small business.