Economic Stimulus By Cutting Capital Gains Taxes: How Would That Work Out For Ya?
As Atrios notes today, Lindsey Graham was running his mouth on Face the Nation yesterday talking about cutting taxes on capital gains and dividends as a way to stimulate the market.
We’ll be hearing a lot of this gibberish from "fisacal conservatives," and so I think this chart from Moody’s that Yglesias put up over the weekend needs to be spread far and wide:
To reinforce what Ian said this morning, putting money into food stamps is one of the best ways to get money into the economy without stimulating inflation. Cutting taxes on capital gains and dividends may have a lot of support, but that’s not because it’s an efficient way to address the problem. Republicans and Blue Dogs may think it is true, but it’s clapping for pony time.
And congratulations to Paul Krugman on his Nobel prize, for having the courage to tell us the truth about these things in a hostile environment for years.