One for Beep: Fiscal implications of candidates' plans.

Post #298,862 by Another Scott 11/3/08 7:34:24 AM Reply	One for Beep: Fiscal implications of candidates' plans. http://www.econbrowser.com/archives/2008/11/fiscal_implicat.html === begin cut === I think now is the time to consider the fiscal implications of the candidates' budget -- and particularly tax -- plans, especially considering the revenue declines and outlays that will confront the next President. Indeed, I would say imminent revenue declines will place an even greater premium on sensible tax plans, and efficient use of Federal dollars. Figure 1 displays the budget surplus to GDP ratio, both actual and CBO baseline. [...] === end cut === McCain relies on Magic Asterisks. ;-) Cheers, Scott.
Post #298,874 by beepster 11/3/08 11:08:25 AM Reply	Pretty much. Neither one works. The unknown piece in that is the reaction of the economy to each plan. McCain's plan relies on the "hope" that cutting corp taxes will increase business levels and negate what the CBO is projecting as revenue losses. The Obama plan is pretty much status quo on tax levels to business...so CBO projected losses are a good assumption. What is absolutely clear is that neither one gets the underlying problem with our economy at this point and both are actually feeding into the problem instead of providing a remedy for it.
Post #298,880 by jay 11/3/08 12:30:02 PM Reply	Doubt anybody really understands Given the complexities of the current finance crisis and how much of it is unregulated and undocumented transactions, I doubt anybody really understands. In any case, both of their economic platforms seen designed more around making a good public statement more then actually being implemented. They are both cookie cutter plans designed around what works well in a speech right now, not what should be implemented down the road. Jay

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