Cutting Taxes to Promote Growth and Restore Fairness: A Memo to President-elect Obama

Publication Date: December 2008

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Alison Fraser; Curtis S. Dubay

Research Area: Banking and finance

Keywords: Capital gains; Presidential transition; Tax burden

Type: Brief

Coverage: United States

Abstract:

President-elect Obama, a centerpiece of your campaign was your pledge to cut taxes for 95 percent of American workers. Middle-class voters, especially, connected strongly with this pledge and expect their taxes to decline. Tax cuts are one key way to strengthen the economy for both the short term and long term, creating jobs and increasing wages. Targeting families, workers, and small businesses is a good starting point, but your promised tax cuts will deliver only minimal benefit to the groups you target. You must go farther if your tax plan is to promote a growing economy--something that is essential in our current situation.