For Immediate Release: Thursday, April 7, 2011
Contact: Phoebe Silag or Karen Conner, email@example.com 202-775-8810
Many Republican federal budget proposals assert that tax breaks for the wealthy and for large corporations, combined with reduced safety net spending, will grow the economy. Today’s Snapshot, from a new EPI briefing paper, shows the folly in that logic. Because the U.S. economy is currently underperforming due to decreased demand for goods and services, tax cuts for the already privileged are far less effective than spending as economic stimulus. Click for more on the most effective stimulus.
You can find extensive research on this topic in Abandoning what works by EPI economist Josh Bivens.