Most economists – from supply-side economists to demand-side Keynesians – advise against it. Their reasoning or emphasis likely will be different. For good measure, they probably would come to different conclusions if the economy were growing and healthy. But in this case, there is considerable agreement within the community of economists that raising taxes now – even on upper incomes – is unwise.
Yet, President Barack Obama and Democratic leaders in Congress seem to be chomping at the bit to jack up personal income, capital gains and dividends taxes on incomes above $200,000, as well as re-imposing the death tax.
The negatives of higher taxes in a down economy, one might think, would be obvious to everyone. For example, less money for spending, reduced resources and incentives for investment, and so on.
So, why are the Democrats in our nation’s capital ignoring basic economic common sense?
Well, it’s important to point out that not all Democrats are doing so...
Read the rest of this SBE Council Cybercolumn here.