Dems often argue 'Bring back the Clinton tax rates,' look how the economy boomed!
The Kansas City Star
I’ve seen this argument repeatedly in letters and email: If low taxes are essential why did the country do well in the late 90s when rates were higher? The implication is, restore the Clinton rates, get the prosperity back.
We’re about to run an experiment on that question.
Right now, it looks as if we’re headed over the fiscal cliff, the moment the Clinton-era tax rates will return and millions of people will realize that the tax cuts of the Bush years weren’t just for the rich. On Jan. 1, they will expire and taxes will go up for everyone.
The Dems who have been arguing for an end to the Bush rates will get their wish and we’ll learn the result. The CBO thinks the higher rates, and the spending cuts in the sequester, will bring on a recession.
President Obama wants to end the Bush rates just for the rich. That may or may not tip us into recession, but it won’t help. The economy is weak as it is under current rates. Yanking more money out of the private economy will only make it weaker.
In any case, if the fiscal cliff fiasco does cause a recession, then economists may someday compare Oama’s policies to the error of FDR, who raised taxes in 1937 and the economy slumped badly.