IPI Publication Press Release - Which Candidates’ Tax Plan Would Be Better for the Economy??

This information is taken from a new IPI Issue Brief, “The Fiscal Plans of Al Gore and George Bush: A Comparison,” by Gary and Aldona Robbins. For copies or further information, visit www.ipi.org or call Sonia Hoffman at (972) 874-5139.
The authors are available for interviews.

	IPI Publication Press Release IPI Issue Brief Related Publication Title: The Fiscal Plans of Al Gore and George Bush: A Comparison Released by Sonia Hoffman on 10/09/2000	Synopsis Full Text Press Release (10/09/2000) Press Release (10/12/2000) Press Release (10/30/2000) Press Release (10/31/2000) Press Release (02/07/2001) Press Release (01/25/2001) Media Advisory (10/09/2000) OpEd (11/09/2000) Full Text PDF
	Which Candidates’ Tax Plan Would Be Better for the Economy?? For Immediate Release: Monday, October 9, 2000 For more information: Sonia Hoffman (888) 557-4IPI or shoffman@ipi.org Dallas, TX: The nation watched last week as our presidential candidates jockeyed for executive authority of a $4.6 trillion budget surplus, expected by 2010. But most viewers are still wondering which nominee, really, proposes the better tax policy—Vice President Gore or Texas Governor Bush? “The Bush tax cuts would provide more bang for the buck,” say IPI Senior Research Fellows Gary and Aldona Robbins in a new Issue Brief for the Institute for Policy Innovation (IPI). “For every dollar of static revenue loss, the Bush tax cuts would generate $1.80 in added output, compared to 41 cents for Gore.” In fact, the Bush tax plan would generate almost 2 million new jobs (a 1.4% increase) and raise the stock of U.S. capital by 6.8 percent. Gore’s strategy, on the other hand, would add only 200,000 more jobs (a 0.14% increase) and increase the stock of U.S. capital by 0.03 percent. The federal budget also fares better under the Bush plan, with higher growth offsetting 27.3% of the static revenue loss by 2010 and 34.2% by 2020. In contrast, the most the Gore plan would offset is 5.7%. “In short, both the Gore and Bush plans would increase growth relative to the baseline. But, the improvement in the economy would be minimal under Gore because his tax cuts are smaller --a fourth of Bush’s,” continue the Robbins. “Three-quarters of his tax cuts have little affect on working or saving incentives, and his tax increases fall on business to the detriment of the economy.” Fiscally speaking, it’s Bush’s tax proposal that would ultimately be better for the U.S. economy. This information is taken from a new IPI Issue Brief, “The Fiscal Plans of Al Gore and George Bush: A Comparison,” by Gary and Aldona Robbins. For copies or further information, visit www.ipi.org or call Sonia Hoffman at (972) 874-5139. The authors are available for interviews.