Monday, October 4, 2010
The Best Economic Stimulus is Lower Taxes Not More Government Spending
Excessive borrowing to fund the Stimulus projects was and is fool-hearty for our children and grandchildren. Recent experience shows that the local economy, especially the stability of local municipalities and school districts, is not significantly improved by local stimulus spending. It would have been much better for the Federal government to significantly slash taxes including capital gains taxes and payroll and FICA taxes to encourage small business to expand business and hire new employees. For example, look at the states of Texas versus New York. Where are the jobs leaving and where are they going? Answer: Jobs move where the taxes are lowest.