Things are going to get worse for the U.S. economy in the long run unless our great thinkers in Washington get the message that we already have uncompetitive corporate tax rates and their schemes are only going to exacerbate the problem. You know things are ugly when corporations are moving from the U.S. to Canada [...]
The National Bureau of Economic Research, which is not a government agency but does have a relationship with the federal government, has analyzed three possible governmental responses to a recession:
deficit spending
deficit financed tax cuts
increased spending financed with increased taxes
The results?
We find that deficit-financed tax cuts work best among these three scenarios to improve GDP
Translation: Obama’s [...]