Comments on: The big hole in Obama’s budget plan http://blogs.reuters.com/james-pethokoukis/2011/04/14/the-big-hole-in-obamas-budget-plan/ Politics and policy from inside Washington Sun, 07 Apr 2013 21:23:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Yellow105 http://blogs.reuters.com/james-pethokoukis/2011/04/14/the-big-hole-in-obamas-budget-plan/comment-page-1/#comment-11268 Yellow105 Thu, 14 Apr 2011 19:05:13 +0000 http://blogs.reuters.com/james-pethokoukis/?p=6264#comment-11268 Here, James. Read. http://www.bloomberg.com/news/2011-04-08/ryan-budget-cuts-are-based-on-economic-theory-rejected-by-bernanke-imf.html Here, James. Read.

http://www.bloomberg.com/news/2011-04-08  /ryan-budget-cuts-are-based-on-economic -theory-rejected-by-bernanke-imf.html

]]> By: Yellow105 http://blogs.reuters.com/james-pethokoukis/2011/04/14/the-big-hole-in-obamas-budget-plan/comment-page-1/#comment-11267 Yellow105 Thu, 14 Apr 2011 19:03:32 +0000 http://blogs.reuters.com/james-pethokoukis/?p=6264#comment-11267 The jobs and housing boom promised by House Budget Committee Chairman Paul Ryan relies upon an economic theory that has been rejected by both the chairman of the Federal Reserve Board and the International Monetary Fund. You left that part out, didn't you James? The International Monetary Fund last fall concluded that deficit-cutting does produce long-term economic benefits. A lower stock of public debt allows interest rates to fall, encouraging investment, and lower interest payments permit the government to cut taxes. "Still, reducing the size of government would carry larger short-term output and employment costs if a country could not offset the pain by lowering interest rates or if several countries simultaneously retrenched, the fund warned. And IMF economists rejected the theory of expansionary contractions. “The idea that fiscal austerity triggers faster growth in the short term finds little support in the data,” they wrote in a chapter of the fund’s World Economic Outlook. I'm sure James will look right into this and get his honest, non-partisan analysis posted tomorrow. The jobs and housing boom promised by House Budget Committee Chairman Paul Ryan relies upon an economic theory that has been rejected by both the chairman of the Federal Reserve Board and the International Monetary Fund.

You left that part out, didn’t you James?

The International Monetary Fund last fall concluded that deficit-cutting does produce long-term economic benefits. A lower stock of public debt allows interest rates to fall, encouraging investment, and lower interest payments permit the government to cut taxes.

“Still, reducing the size of government would carry larger short-term output and employment costs if a country could not offset the pain by lowering interest rates or if several countries simultaneously retrenched, the fund warned. And IMF economists rejected the theory of expansionary contractions.

“The idea that fiscal austerity triggers faster growth in the short term finds little support in the data,” they wrote in a chapter of the fund’s World Economic Outlook.

I’m sure James will look right into this and get his honest, non-partisan analysis posted tomorrow.

]]> By: VATfan http://blogs.reuters.com/james-pethokoukis/2011/04/14/the-big-hole-in-obamas-budget-plan/comment-page-1/#comment-11265 VATfan Thu, 14 Apr 2011 12:41:40 +0000 http://blogs.reuters.com/james-pethokoukis/?p=6264#comment-11265 The ideal implementation of VAT is in total sweeping tax overhaul -- scrap the current tax code altogether as Mitch Daniels has envisioned ( http://wp.me/p18NCA-9n ), and balance the VAT with a flat (or tiered) personal income tax with a high threshold. Use the EITC to protect the lower brackets. The ideal implementation of VAT is in total sweeping tax overhaul — scrap the current tax code altogether as Mitch Daniels has envisioned ( http://wp.me/p18NCA-9n ), and balance the VAT with a flat (or tiered) personal income tax with a high threshold. Use the EITC to protect the lower brackets.

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