taxes & economy

taxes & economy - Capital Commerce By James...

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Capital Commerce By James Pethokoukis Forget the Fed—Try Cutting Taxes Instead December 06, 2007 02:15 PM ET Wall Street and Washington may be overly focused on what the Federal Reserve will do next week at its policy meeting. What about fiscal policy to boost both the slowing economy and the dollar? Here are three different takes on that issue. First up, an analysis by Cesar Conda , former domestic policy adviser to Vice President Cheney: On the one hand, the long-bond is down and the yield curve is inverted, which suggests that the Fed may be too tight. On the other hand, key commodity prices such as gold, silver, and especially oil remain high, while the dollar exchange rate has declined, suggesting that there is adequate liquidity and that inflationary pressures remain. ... Instead of pushing the Fed to unnecessarily cut interest rates, Wall Street investors, the media, and others should put the onus on Congress to boost the U.S. economy by cutting tax rates. Making the Bush tax cuts permanent, especially the capital-gains and dividend tax reductions which are set to expire by 2010, would lift the cloud of economic uncertainty. Cutting the U.S. corporate tax rate—currently the second highest among industrialized nations—would not only improve the cash flow and profitability of U.S. firms in the near-term, but greatly enhance their ability to compete in the global marketplace over the
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This note was uploaded on 01/23/2011 for the course POLT 407 taught by Professor Siggelakis during the Spring '10 term at New Hampshire.

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taxes & economy - Capital Commerce By James...

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