Tax Cuts Are Only Way to Economic Growth

David Blanchflower

If we don’t act fast, a plunge into depression is a growing risk in both the U.S. and the U.K. Quantitative easing will probably have to be started again this year in both countries. The so-called Bush tax cuts, which are scheduled to expire at the end of the year, should be extended as soon as possible. In the U.K., the draconian public-spending cuts alongside the increase in value-added tax planned for the end of the year should both be scrapped. Now is the time to cut taxes, not increase them. Payroll tax holidays are the way to go. U.S. unemployment remains worryingly high at 9.5 percent and initial jobless claims are up again. Banks are still not lending, especially to small businesses and even though mortgage rates are at historic lows, house prices show no signs of recovering. Consumer confidence is down and spending is slowing. Read more here:

Tax Cuts Are Only Way to Economic Growth