“tax increases appear to have a very large, sustained, and highly significant negative impact on output.”
“tax cuts have very large and persistent positive output effects.”
tax cuts do “not have any clear impact on revenues at horizons beyond about two years.”
— Christina Romer, Berkeley economist and Obama appointee as chair of the Council of Economic Advisors, in two working papers, the most recent versions of which are very timely: November 2008 and July 2008.
