Bizarro Tax Cuts

In response to the Democratic economic stimulus package that passed through the House two nights ago, the GOP has proposed their own stimulus package–one they say will create 6 million jobs, more than twice the amount of jobs Obama’s plan would create.

Of course, that’s not exactly true:

But where did the Republicans get that number? By drawing some fuzzy conclusions from a 2007 paper by Dr. Christina Romer, chair of Obama’s Council of Economic Advisers.

[…]

[T]he Romer analysis used by the GOP (linked to in the third paragraph of this page) never examined the effects of tax cuts on a deflationary economy — it looked at the effects of tax increases on the economy as a whole and found a negative effect of 2.2% – 3% on GDP.

The Republican analysis simply flipped those numbers to positive and applied them to the GOP-backed tax cuts then multiplied the result by a broad job creation estimate used in a recent paper from Romer and Jared Bernstein

In other words, the GOP used a nonsensical mish-mash of formulas and calculations to get a job creation figure that has no basis in economics, mathematics or reality.

Oh, and then there’s this:

According to Dems on the House Ways and Means Committee who have crunched the numbers, the GOP plan, which would reduce income taxes across the board, would as a result shove millions over on to the Alternative Income Tax rate, which would be higher for them.

That’s right–the GOP plan, designed to be a massive package of tax cuts, would actually raise taxes for millions of working Americans. That‘s how shoddy and hastily-put-together their stimulus plan is.

I’ve said it before and I’ll say it again–the Republican Party isn’t a serious political party anymore.

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