[PEN-L:34248] Bush Tax cut petition

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

We believe that the tax plan proposed by the Bush Administration would
be a serious mistake for the country. If you agree, we urge you to add
your name to ours as an endorser of the Economists? Statement below. We
intend to make this statement public soon, and we encourage you to give
us your response by the close of the workday on Tuesday, February 4. If
you cannot meet that deadline but wish to join us as endorsers of this
statement, we can accept additional signatures through noon on Friday,
February 7.

In order to sign on to this statement, you need to fax a form (available
at http://www.epinet.org/stmt/) to 202-331-5545. Please also feel free
to pass this invitation along to colleagues who might also want to
participate. We hope you will join us in this important effort. If you
have questions, please e-mail us at: economists@xxxxxxxxxxx

George Akerlof*, University of California ? Berkeley
Kenneth J. Arrow*, Stanford University
Peter Diamond, Massachusetts Institute of Technology
Lawrence R. Klein*, University of Pennsylvania
Daniel L. McFadden*, University of California ? Berkeley
Lawrence Mishel, Economic Policy Institute
Franco Modigliani*, Massachusetts Institute of Technology
Paul A. Samuelson*, Massachusetts Institute of Technology
Robert M. Solow*, Massachusetts Institute of Technology
Joseph Stiglitz*, Columbia University
Laura D?Andrea Tyson, London Business School
Janet Yellin, University of California ? Berkeley

* indicates Nobel laureates


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ECONOMISTS? STATEMENT OPPOSING THE BUSH TAX CUTS










Economic growth, though positive, has not been sufficient to generate
jobs and prevent unemployment from rising. In fact, there are now more
than two million fewer private sector jobs than at the start of the
current recession. Overcapacity, corporate scandals, and uncertainty
have and will continue to weigh down the economy.

The tax cut plan proposed by President Bush is not the answer to these
problems. Regardless of how one views the specifics of the Bush plan,
there is wide agreement that its purpose is a permanent change in the
tax structure and not the creation of jobs and growth in the near-term.
The permanent dividend tax cut, in particular, is not credible as a
short-term stimulus. As tax reform, the dividend tax cut is misdirected
in that it targets individuals rather than corporations, is overly
complex, and could be, but is not, part of a revenue-neutral tax reform
effort.

Passing these tax cuts will worsen the long-term budget outlook, adding
to the nation?s projected chronic deficits. This fiscal deterioration
will reduce the capacity of the government to finance Social Security
and Medicare benefits as well as investments in schools, health,
infrastructure, and basic research. Moreover, the proposed tax cuts will
generate further inequalities in after-tax income. To be effective, a
stimulus plan should rely on immediate but temporary incentives for
investment. Such a stimulus plan would spur growth and jobs in the short
term without exacerbating the long-term budget outlook.


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To sign on to the above statement, download a reply form at
http://www.epinet.org.stmt/ and fax it to us at 202-331-5545.


B

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Michael Perelman
Economics Department
California State University
michael@xxxxxxxxxxxxxxxxx
Chico, CA 95929
530-898-5321
fax 530-898-5901