Do Tax Cuts for the Wealthy Stimulate Employment?

July 7, 2005 | The New York Times |

Distinguished Senior Fellow Robert H. Frank explains in The New York Times why tax cuts for the rich have not been successful at stimulating economic growth compared to other options available to Congress and the Bush Administration.

The centerpiece of the Bush administration's economic policy has been large federal income tax cuts aimed mainly at top earners. These tax cuts account for much of the $2 trillion increase in the national debt projected to occur during the Bush presidency. They prompted a large group of Nobel laureates in economics to issue a statement last year condemning the administration's "reckless and extreme course that endangers the long-term economic health of our nation."