"The report by William W. Beach of the Heritage Foundation shows that economic growth recedes under the Kerry plan.
"The annual rate of non-farm employment growth will be consistently below-forecast each quarter for the 10 years following January of 2005," Beach says in his report. "By 2006 there will be 225,000 fewer jobs created per year due to the Kerry tax plan than in the baseline scenario, and by 2013 there will be 404,000 fewer jobs created per quarter. The unemployment rate also is consistently higher than in the baseline scenario through the forecast period."
Beach also states that GDP growth will slow if Kerry's plan were to be enacted.
"The nation’s output of goods and services quickly drops below current forecasts, and growth remains slower throughout the next 10 years," Beach says. "Gross Domestic Product, after adjustments for inflation, drops an average of nearly $20 billion below baseline for each of the first five years and $30 billion below baseline for each of the last five years."
According to the report, after-tax income would shrink under the Kerry plan, and savings would "plummet."
"Income after taxes, or inflation-adjusted disposable personal income, is below baseline in each year of the forecast," Beach says. "It begins $43 billion lower than baseline in 2005 and continues to drop to $240 billion below forecast in 2014."
The author adds, "Lower disposable personal income means lower personal savings. The personal savings rate averages 17 percent less during the first year of the Kerry plan (2005) and is 43 percent below baseline by 2014. By 2014, personal savings are $193 billion below baseline." |
