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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: rich4eagle who wrote (208981)	12/11/2001 11:36:03 PM
From: gao seng	Read Replies (1) \| Respond to of 769670

Depends on how you define income. Institute for Policy Innovation: What's the Most Potent Way to Stimulate the Economy? A Lingering Stimulus for a McDonald's World. Jump to first matched term DALLAS--(BUSINESS WIRE)--Dec. 11, 2001--While some senators are fighting for an increase in health care and unemployment compensation to help during the economic slowdown, other senators want to serve up an economic "happy meal" by speeding up tax cuts. Both plans are quite fitting for today's fast-food, McDonald's-driven society. But, if either pass, Americans will be forced to accept that their needs aren't going to be satisfied for long. "Using tax cuts to give a needed boost to the economy is a good idea; the trick is implementing policies that will deliver the biggest payoff at the lowest cost," say IPI Senior Research Fellows Aldona and Gary Robbins, who co-authored the recent Institute for Policy Innovation study, "What's the Most Potent Way to Stimulate the Economy?" What kind of tax cut would dish out the biggest bang for the buck? 1. Cutting capital gains taxes. Capital gains deductions would add $10.61 to Gross Domestic Product (GDP) per dollar of revenue cost. 2. Accelerated depreciation. Depreciation reform would add $9.00 to GDP per dollar of tax cut. 3. IRA expansion. Expansion of IRAs would add $6.97 to GDP per dollar of revenue cost. 4. AMT repeal. Repeal of the Alternative Minimum Tax would add $5.61 to GDP per dollar of revenue cost. 5. Speeding up 2001 Tax Cuts. Faster reduction for personal rates would add $2.10 to GDP for every dollar of revenue cost. 6. Payroll Tax Cut. Without a cap, cutting the payroll tax would add only $.70 to GDP per dollar of revenue cost. Limited cuts would add $.23 to GDP. In other words, speeding up tax cuts will help for a little while, but it does not provide the lasting stimulus America needs. The Robbins' findings suggest that reducing rates on capital -- capital gains and accelerated depreciation -- would have the biggest economic payoff. Continue the Robbins: "Layoffs, investor fears and sagging consumer confidence are real problems. But instead of short-term fixes, the problems demand and deserve lasting, long-term solutions