James Pethokoukis

What’s wrong with the U.S. economy in one chart

September 27, 2010

Tax rates matter. You tend to get the stuff you tax lightly and don’t get what you tax heavily. Wonder why America had a housing boom and why we are wallowing in debt? Here is why:

Will Obamanomics slow the economy?

September 20, 2010

These two charts pretty well sum up one version of the economic impact of the White House tax plan — such as raising high-end tax rates — at least according to a computer model run by the conservative Heritage Foundation. You can disagree with the modelling, I suppose. But I am not sure any model would show higher taxes boosting the economy right now.

Uncle Sam has plenty of dough

September 16, 2010

Here is a point that has gotten lost in the Bush tax cut debate. Even with the tax cuts, Uncle Sam will have plenty of revenue. As I wrote earlier this week:

Goldman Sachs on Stimulus 2.0

September 8, 2010

The Goldman Sachs econ team gives a rousing “meh” to the new Obama economic plan:

GOP to Obama: Freeze taxes for two years

September 8, 2010

The Republican reply to the POTUS tax plan:

Speaking ahead of an economic address set for later in the day by President Barack Obama, Boehner also proposed that the U.S. government cut spending for next year to 2008 levels — before federal corporate bailouts and Obama’s $814 billion economic stimulus plan.

Obama’s Immaculate Concession?

September 2, 2010

The White House may be warming to the idea of using tax cuts to boost the U.S. economy. It’s a possible plan that could have scored loads of Republican votes had it been proposed in early 2009. But with the president’s popularity falling and congressional elections looming, support won’t be so easy to coalesce.

Obama’s September surprise?

September 1, 2010

A few initial thoughts on Obama considering tax cuts to boost economy (via WSJ story):

An obvious tax cut

August 31, 2010

Josh Barro of the Manhattan Institute give a wonderful explanation of the wisdom of indexing capital gains taxes for inflation. Here is  a taste:

Are tax cuts on the Obama autumn agenda?

August 31, 2010

I would love to think so. And I know some folks on Wall Street would love to believe. But there are few signs that Obama will change course on taxes.  Here is White House economic adviser Jason Furman:

Forecasting the Bush tax cuts

August 17, 2010

Wall Street’s conventional wisdom is that markets like political gridlock — but not if inaction means hitting a weak economy with a big tax hike. When Congress returns from vacation, it needs to deal with the expiring tax cuts signed by President George W. Bush. The Obama deficit panel, however, could limit any extension of them.