Larry Summers: Almost All Economists Believe More Taxes Fuels Job Growth
President Obama continuously tries to portray himself as a friend to the little-man, middle class and small business. Hence his attacks on âfat catsâ who âjust donât get it,â while labeling the extravagant bonuses as âobscene,â and âthe height of irresponsibility.â
Meanwhile, members of his administration, in defending a sweeping small-business aid program Obama announced in his State of the Union, give reason to wonder if they really understand how to help small business.
Among the administrationâs proposals for small businesses are a $5,000 tax credit to hire new workers, elimination of capital gains taxes, and new incentives to invest in plants and equipment. At the same time, however, the administration plans to raise taxes on âthe wealthiest Americans.â
Obamaâs chief economic adviser Larry Summers appeared Feb. 9 on the Fox Business Channel to discuss the administrationâs economic agenda and defended proposed rate-hikes for those making over $250,000. âAlmost all economists who studied these things have that kind of view,â he told Foxâs Liz Claman.
Perplexed, Fox News contributor Gary B. Smith replied: âitâs the biggest bunch of B.S. I ever heard âŠ this is such a political game. , Larry Summers thinks everyone is Rockefeller living in their Newport, Rhode Island mansion. These are guys that are starting businesses, investing. You canât give people business money to hire people, they have to have a reason for hiring these people and thatâs because they see sales increasing or costs decreasing. You canât just say âgo hire these five peopleâ because the businesses will go âWhat for? I donât have the demand!ââ
Contributor Mike Norman also disagreed with Obamaâs economic plan, saying, âIf you want to get money into the hands of most people, the fastest, you do something that has been proposed now since this whole crisis began â and that is a suspension or significant reduction in the payroll tax. Thatâs where people get the most taken out; thatâs something like a trillion-dollars every year that goes to the federal government â that just goes nowhere,â Norman said. âThat would bring our economy back, but heâs not for that.â