September 6, 2012
Heritage: Clinton Tax Hikes Slowed Growth of Economy, Wages
President Obama argues that President Clinton’s economic record is proof that the current economy would grow if Congress passed the tax hikes he has long proposed. The American public should not fall for this misleading argument.
The historical record is clear: The economy grew slower than it should have in the years after Clinton’s 1993 tax hike. The strong economic growth that is associated with his presidency occurred only after he agreed with Congress to cut taxes in his second term.
President Obama’s cursory and errant analysis of recent history has serious implications for policymaking today. If Congress raises taxes based on the faulty notion that tax hikes have no ill effects on economic growth, it will impede the still-struggling recovery and keep millions of Americans on the unemployment rolls far too long.
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Good thing everything else was constant and tax rates were the only variables in this comparison.
Posted by: the real anon | Sep 6, 2012 2:12:22 PM
I guess tax increases always have their effects exactly 4 years later and tax cuts always have their effects exactly 7 years later.
At least if those are the lengths of time you need to manipulate the data and get the growth rates you want.
Why does Paul Caron post propaganda from ideological think tanks as if it were worthy of the attention of scholars? Are we supposed to believe it? Be outraged and reject it?
Can't we just ignore it the way we ignore graffiti on the wall? It's about on the same intellectual level.
Posted by: Anon | Sep 6, 2012 8:57:27 PM
Yeah. It was just awful.
Posted by: Jim Harper | Sep 6, 2012 11:26:02 PM