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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Yorikke who wrote (3330)	2/24/2001 11:40:26 AM
From: Yorikke	Respond to of 33421

The Boys from the Levy Institute have another proposal...... levy.org Look for: Policy Notes 2001/2 Fiscal Policy For the Coming Recession: Large Tax Cuts are Needed to Prevent a Hard Landing Dimitri B. Papadimitriou and L. Randall Wray Growing government surpluses, a ballooning trade deficit, and the resulting growth in private sector debt have placed the U.S. economy in a precarious position. We agree with President George W. Bush that fiscal stimulus is necessary to reinvigorate the economy; in the current economic environment, monetary policy will not work. However, a tax cut that would adequately stave off a downturn needs to be substantially larger than that proposed by the president. In summary, to prevent the economy from sliding into recession, an immediate tax cut of approximately $450 billion will be required during the next year. President Bush's current plan would cut taxes by as much as $150 billion during that period. We recommend an additional $150 billion tax cut in the form of a reduction in the payroll tax and another $150 billion cut to be achieved through an expansion of the EITC, retroactive tax refunds, and provision of tax credits for educational spending, child care, or similar activities. >>>>>> For those of you that don't mind spending the time this is quite an interesting paper. These are economists and not political hacks. Their ability to choose methods that might work and not just stick to the 'party' line is quite refreshing.