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Harvard Economist: Obama’s Tax Cut Not Likely to Help Economy « The Washington Independent

Jul 31, 2020
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Too late to slip into this morning’s storyon the tax cuts being floated as part of President-elect Barack Obama’s stimulus plan, Harvard economist Martin Feldstein emails to add his name to the growing list of skeptics. Workers given a $500 payroll-tax credit, Feldstein writes, will likely use it the same way they did their $600 rebate checks last year — put most toward savings or paying down debt. From his email:
There is a significant danger that the Obama 2-year tax cut would fail to raise spending, just as the rebate did. If it is made permanent, that is a major long-run increase in the national debt.
Feldstein, formerly the chief economic advisor to Ronald Reagan, said that “some direct government spending would be more cost effective.” And he’s puzzled why increased defense spending hasn’t gained more mention in the stimulus debate. (Not a new topic for him.)
I am disturbed that the Obama transition has not asked the military service chiefs for their suggestions for quick-spend programs that can strengthen the military.
Don’t worry. There’s plenty of time for the Pentagon — like everyone else— to come begging for a piece of this pie.
Camilo Wood

Camilo Wood

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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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