Media Advisory
IPI Issue Brief Author: Gary Robbins, Aldona Robbins on 12/01/2001
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Media Advisory (12/01/2001)
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Expert Economists Available to Discuss the
Best Way to Stimulate the Economy
Best Way to Stimulate the Economy
For IMMEDIATE RELEASE: Wednesday, December 12, 2001
Contact: Sonia Hoffman, (703) 912-5742 or shoffman@ipi.org
WHAT: Layoffs, investor fears and sagging consumer confidence are real problems. But instead of short-term fixes, these problems demand and deserve lasting, long-term solutions.
“Using tax cuts to give a needed boost to the economy is a good idea; the trick is implementing policies that will deliver the biggest payoff at the lowest cost,” say IPI Senior Research Fellows Aldona and Gary Robbins.
What kind of tax cut would provide the biggest bang for the buck?
#1. Cutting capital gains taxes. Capital gains deductions would add $10.61
to Gross Domestic Product (GDP) per dollar of revenue cost.
#2. Accelerated depreciation. Depreciation reform would add $9.00 to GDP per
dollar of tax cut.
#3. IRA expansion. Expansion of IRAs would add $6.97 to GDP per dollar of
revenue cost.
#4. AMT repeal. Repeal of the Alternative Minimum Tax would add $5.61 to
GDP per dollar of revenue cost.
#5. Speeding up 2001 Tax Cuts. Faster reduction for personal rates would
add $2.10 to GDP for every dollar of revenue cost.
#6. Payroll Tax Cut. Without a cap, cutting the payroll tax would add only $.70 to
GDP per dollar of revenue cost. Limited cuts would add $.23 to GDP.
WHO: Gary and Aldona Robbins
Senior Research Fellows and co-authors of the Institute for
Policy Innovation study, “What’s the Most Potent Way to
Stimulate the Economy?”
WHEN: Available immediately to radio, television and print mediums.
CONTACT: Sonia Hoffman
(703) 912-5742 or (202) 213-0379 or shoffman@ipi.org
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