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During an interview with MSNBC’s Andrea Mitchell a short time ago, Sen. John McCain’s senior economic adviser, Doug Holtz-Eakin said a non-partisan tax analysis found McCain’s tax plan will better promote economic growth than that of Sen. Barack Obama.
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8 months ago
Second... the sentence this signs off with states that these plans must be accompanied by spending cuts or tax increases that the campaigns have not specified. That contradicts the notion that economic growth cannot occur without a long term tax increase somewhere else.
Finally, I would argue that tax cuts to the lower tax brackets are MORE pro-growth than tax cuts to higher tax brackets. They spend more of their disposable income increasing demand and compelling businesses to expand. The argument that capitalizing the wealthy who will then invest in businesses compelling them to expand doesn't historically work because businesses are wisely going to respond to demand shifts when they expand and contract... not capital. If it doesn't make sense to expand, they would just stick that extra capital into accounts for interest/liquidity.