Bush Tax Cuts Not Important for US Economy: Summers

[sabra]

Source: CNBC

Maintaining tax cuts for top wage-earners should take a back seat to other more pressing measures, White House economic advisor Larry Summers said, in a signal the administration could be digging in its heels on the issue.

In an interview with CNBC, Summers stopped short of saying the Obama administration would oppose continuing the across-the-board cuts approved by former President George W. Bush.

But he dismissed the importance of continuing the cuts for those earning over $250,000, a key part of the political battle raging in Washington. The cuts expire at the end of 2010.

"With deficits looming as seriously as they are, why is now the right moment to lock in several hundred billion dollars of tax cuts for 2 percent of the population when we could be using those revenues to strengthen incentives for investment in the country's future?" Summers said.

"I think the case is pretty clear, if you look at what the vast majority of economists are saying, (that) what will stimulate economy more are measures that are targeted at investments, it's measures that are targeted at research and development," he continued. "So I think those are the right steps forward."

Read more: http://www.cnbc.com/id/39210345

[Uncle Joe]

1. Kicked and recommended with one caveat.

"Is there a risk that overregulation could take place? Absolutely. That's why every regulation has to be reviewed separately by the Office of Management and Budget in terms of its impact on the economy," Summers said. "That's why the administration has indicated its commitment to cost-benefit analysis in regulation. So yes, of course these questions involve striking a balance and of course some people are upset that attention is being paid to consumer protection once again."

The loss of the environment should be considered in the cost benefit analysis.

I doubt the loss of the Gulf was given it's true value in the initial cost-benefit analysis.

Thanks for the thread, sabra.

[L0oniX]

2. Remember folks ...that $250,000 is net profit, not gross profit. There are deductions!

Example: To have $250,000 profit as a restaurant owner you would have to do $5,000,000 in gross sales. Many restaurants net profit margin is 5%.

[Evasporque]

3. In other words....

Bush and Republicans buried us in such a huge hole that it is going to take R&D to dig us out.