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Harvard Economics Professor Calls Stimulus “Terrible Piece of Legislation”
The Tax Foundation ^ | FEBRUARY 19, 2009 | Tax Foundation

Posted on 10/17/2009 3:33:57 PM PDT by Son House

Robert Barro, Professor of Economics at Harvard University, criticizes the recently passed federal stimulus package as a "terrible piece of legislation," and calls for permanent changes to the tax structure to spur economic growth.

In a discussion with Tax Foundation Vice President for Economic Policy Robert Carroll in this week's edition of the Tax Policy Podcast, Barro strongly disapproves of both the expenditure and tax provisions within the stimulus legislation.

"What they call tax reductions in this bill are really transfer payments, particularly redistribution of income from the rich to the poor," says Barro. "I don't think it's really attractive to do something in a temporary fashion. You want to have a more stable tax structure."

Barro points to the 2003 tax cut legislation as being very positive for economic growth, and chides the current administration for blaming those policies for the current economic downturn.

"The economy did very well for the next several years after the tax cuts of 2003. And it's very unfair that Obama has blamed that program for part of the current financial collapse," Barro argues. "There's really no linkage between the tax rate cutting program of 2003 and the financial and housing collapse we've seen in recent months."

Barro also makes recommendations to lawmakers regarding long-term economic incentives to drive economic expansion.

"Abolishing the corporate income tax at the federal level I think would be very positive. It's a very poor form of taxation," says Barro. "I would make permanent the kinds of changes that were in the 2003 tax reform, including the marginal tax rate structure."

This Tax Policy Podcast can be found at http://www.taxfoundation.org/podcast/show/24350.html.


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: 111th; barro; bhostimulus; economics; harvard; professor; stimulus; taxfoundation
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As terrible as the Democrats prior attempts to improve the economy;

October 3, 2008 — Emergency Economic Stabilization Act of 2008 = 110th United States Congress

February 13, 2008 — Economic Stimulus Act of 2008 = 110th United States Congress

1 posted on 10/17/2009 3:33:57 PM PDT by Son House
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To: Son House

Worst Congress, ever. Worst President, ever.


2 posted on 10/17/2009 3:35:09 PM PDT by Psycho_Bunny (ALSO SPRACH ZEROTHUSTRA)
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To: Son House

Was this a new idea, or did he think this before it was passed? Did he communicate it when the Congress was considering it?


3 posted on 10/17/2009 3:35:16 PM PDT by LachlanMinnesota
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To: Son House

FlashBack 2006: Are the Bush Tax Cuts Working?[1.4 million Jobs the Nine Months After August 2003]

http://www.freerepublic.com/focus/f-news/2364667/posts

GDP Growth [Charts at link]

After the recession in 2001 and the first round of tax cuts, economic growth speeded up and is expected to pickup even faster in 2004.

The real annual GDP growth rate increased from 0.3 percent in 2001 to 2.5 percent in 2002. In the third quarter of 2003, GDP grew at a 7.2 percent annual rate. Forecasters are expecting GDP to grow by 4.6 percent in 2004, the highest in 20 years.

2003 and 2004 economic growth levels surpassed Congressional Budget Office (CBO) estimates by 150 basis combined, resulting in $300 billion of additional growth, which is roughly $2,500 per household.

^
What happened 3rd quarter 2003 before GDP grew at 7.2%:

May 28, 2003 — Jobs and Growth Tax Relief Reconciliation Act of 2003 = 108th United States Congress—Thank you Republicans

^
Next, to credit the regression of the GDP and irresponsible budgeting, Thanks Democrats;

110th United States Congress

http://www.freebase.com/view/en/110th_united_states_congress

between January 3, 2007, and January 3, 2009, during the last two years of the second term of President George W. Bush. The Democratic Party controlled a majority in both chambers

^
https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

GDP - real growth rate:

2.8% (2006 est.)

2% (2007 est.)

1.1% (2008 est.)


4 posted on 10/17/2009 3:36:31 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: LachlanMinnesota

Just the state run media neglecting to report it for months, the article is dated FEBRUARY 19, 2009, I just didn’t mark this as a Flashback because the folks in Detroit didn’t get the news /sarcasm level 5


5 posted on 10/17/2009 3:39:07 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Son House

He’ll be drummed out of Harvard like Larry Summers.


6 posted on 10/17/2009 3:39:18 PM PDT by tips up
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To: Son House

bookmark.


7 posted on 10/17/2009 3:40:40 PM PDT by IrishCatholic (No local Communist or Socialist Party Chapter? Join the Democrats, it's the same thing!)
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To: Son House
text describing the image

text describing the image


8 posted on 10/17/2009 3:41:10 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Psycho_Bunny
Worst Congress, ever. Worst President, ever.

It could be worse...

What if a foreigner tossed his shoe at the Village Idiot on foreign ground?

Oh, the humanity!!

9 posted on 10/17/2009 3:41:29 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Son House
Economic Illiteracy Quiz:

After what legislation was there the largest spike up in the Real GDP?
a. February 17, 2009: American Recovery and Reinvestment Act = 111th United States Congress
b. October 3, 2008 — Emergency Economic Stabilization Act of 2008 = 110th United States Congress
c. February 13, 2008 — Economic Stimulus Act of 2008 = 110th United States Congress
d. May 28, 2003 — Jobs and Growth Tax Relief Reconciliation Act of 2003 = 108th United States Congress
text describing the image
( Ignore the green forecast, it was wishful thinking)


Failure Qualifies any Participants
to be an Economic Advisor to the White House,
or Replace a current sitting Democrat Congressional member

Correct Answer is: d.
Apply Now
10 posted on 10/17/2009 3:42:56 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Son House

stupid
I mean really, what piece of legislation passed by the rats was not harmful?


11 posted on 10/17/2009 3:43:55 PM PDT by genghis
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To: tips up

notachance- he is an institionand will win a nobel the nexttenyears.
Super greatguy.


12 posted on 10/17/2009 3:45:11 PM PDT by genghis
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To: IrishCatholic
Income Tax Receipts Stay Constant Even as Tax Rates Decline

text describing the image


13 posted on 10/17/2009 3:46:26 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Son House
text describing the image
14 posted on 10/17/2009 3:48:45 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Psycho_Bunny

Since the start of the recession in December 2007, we’ve lost 7.6 million jobs

^
February 13, 2008 — Economic Stimulus Act of 2008 = 110th United States Congress
October 3, 2008 — Emergency Economic Stabilization Act of 2008 = 110th United States Congress
February 17, 2009: American Recovery and Reinvestment Act = 111th United States Congress

^
Seem Democrats have tried everything EXCEPT Across the Board Tax Cuts


15 posted on 10/17/2009 3:51:05 PM PDT by Son House (OcarterCare by Congress will make all Americans = Wards of the State)
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To: Son House

And it’s very unfair that Obama has blamed that program for part of the current financial collapse,” Barro argues. “There’s really no linkage between the tax rate cutting program of 2003 and the financial and housing collapse we’ve seen in recent months.”

Bravo! Someone who hasn’t swilled the kool-aid .


16 posted on 10/17/2009 3:53:54 PM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
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To: Son House

bump


17 posted on 10/17/2009 3:55:06 PM PDT by WashingtonSource
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To: Son House
Debtocratic Party
18 posted on 10/17/2009 3:57:25 PM PDT by missnry (The truth will set you free ... and drive liberals Crazy!)
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To: Son House

Yes and too many Harvard grads suck.


19 posted on 10/17/2009 3:58:13 PM PDT by bmwcyle (We need more Joe Wilson's. OBAMA is ACORN ACORN is OBAMA)
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To: Psycho_Bunny
Worst Congress, ever. Worst President, ever.

Absolutely! However, chances of all being re-elected? 50/50

20 posted on 10/17/2009 4:05:52 PM PDT by deadrock (Liberty is a bitch that needs to be bedded on a mattress of cadavers.)
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