Wednesday, December 16, 2009

Is Obama Going Supply-Side?

Larry Kudlow finds a potential positive in Obama's generally interventionist thinking:
In NRO’s coverage of Obama’s jobs speech at the Brookings Institution yesterday, I have yet to see any mention of supply-side tax cuts.

The president’s jobs proposal includes a zero capital-gains tax-rate for small-business investors, and full cash-expensing for small-business investment in plant and equipment.

These are potentially powerful incentives for the job-creating small-biz sector. They may only last for a year or so, depending on the mark-up. But they are good things in and of themselves, and they suggest that Obama is aware of incentive effects on economic growth.

I have perused all the NRO posts on the subject so far, and can find no mention of these supply-side tax cuts.

Sure, the new spending is all wrong. That won’t create jobs, and will only bloat the deficit. But Obama’s language was on the supply-side, even in addition to the tax-cut proposals. He said growth will bring in revenues to cut deficits.
It would take a lot more from Obama for me to see any indication he is changing his socialistic ways, but Kudlow is right. In this one case, Obama does sound like a supply sider.

1 comment:

  1. Really? A socialist one year, a supply-sider the next...then what? Obama's rhetoric bounces around like a ping-pong ball constantly searching for an admiring audience. The man will say anything if he thinks it will gain him political support.

    This is not encouraging. This is a person who will lie about anything to anyone at anytime...this is a politician!