Forget the Fed—Try Cutting Taxes Instead

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Mr.Conda,Has it right. The only problem is getting congress to be productive. With Democatic majority in the house,any tax reduction is contrary to their principles. It is easier for them to leave it all to the FED. Any tax reduction has to be permanet to be effective. both the citizens and business need a tax policy in place for hope,growth and long range planning.

William E. Clegg jr. of NH 7:12AM December 08, 2007

Consider the fact that 2/3's of the economy is consumer spending. Giving a tax cut proposed by Reich would make the most sense. Some of the tax cut may be used for consumption, and some for keeping people out of mortgage default. Could kill two birds with one stone. I don't fully agree with raising taxes on the wealthy. Ill effects of deficit spending are way overblown. The public debt to GDP ratio has been floating around 40% for decades (and over 100% after WWII) with no collapse in the system.

MarkG of CT 9:38AM December 07, 2007

Not all tax cuts are the same.
1. tax cuts won't work unless they are permanent
2. tax cuts won't work if they make the tax structure more progressive
Feldstein and Reich's proposals would give tax cut a bad name. They are not supply-side solutions.

of 9:49PM December 06, 2007