Tuesday, January 1, 2013

Bush's Tax Cuts

It has been clear that our congress is frozen in time.  The issue now seems to be about curbing spending and increasing taxes on the rich.  The following quote is from Shiller and Akerlof's book Animal Spirits regarding Bush's Tax Cuts.  These are the very cuts that were dropped in part.  

“The Bush Administration used the downturn to argue for massive permanent tax cuts.  The first and largest of these was signed into law in June, 2001.  The Fed also came into the act.  The discount rate…was brought down to only 0.75% by November 2002.  There is every reason to believe that both of these measures were effective.”

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