Fixing plunging consumer confidence, rising unemployment and a sluggish economy are urgent necessities. We should consider using part of this contingency fund to provide pro-growth tax relief that will revive and grow the economy. Contingency funds are usually used to aid those hurt by natural disasters that destroy homes and businesses and ruin local economies. People are being hurt by the stagnating economy. I think we can.
Surplus estimates continue to be revised upward.
To me, that's 2.1 trillion reasons why there's a bit of room for growth in the final tax relief number. If you score the tax relief package properly, there's room for growth. Taxpayers and businesses change their economic behavior in response to changes in the tax code, and this can impact economic growth. To assume that tax changes never have an effect on economic growth defies common sense. Yet that's still the assumption made by official Washington when estimating the impact of tax relief on government revenues.