This is about right.
Here is what Business Week writer Brendan Greeley tells us about the effect of personal taxes on our economy: “Economists have known for a while that personal marginal tax rates, and in particular those on the rich, don’t seem to have much of an effect on the economy.”
The article below describes Fed Chairman Ben Bernanke’s recent testimony in the Senate, the gist of which was that raising taxes or cutting federal spending now could send the economy into a tailspin that the Federal Reserve could not prevent. Senator Dick Durban, D-Ill, responded that “There is no one who disagrees with his premise,” meaning that no one thinks getting the US government’s finances back into order soon is a good idea. The worst part of this statement is that Durbin probably means it. He probably thinks that no one does think that ending the huge deficits soon would be a good idea. This is rather like President Obama’s statement when he first announced his stimulus program that economists agreed it was necessary, as if all economists agreed with this. In that case, Obama probably believed what he was saying too.
That is what Bloomberg says in the article below. The headline is: Obama Plan Would Boost GDP, Economists Say.
A more accurate headline would have said: Some Economists Say. Read More