Here's new support for pro-growth economic policy. Not what Democrats want to hear.
Edward Prescott, co-winner of the 2004 Nobel Prize for Economics, told CNBC Tuesday President George Bush's tax cuts should have been bigger.Posted by Alan at October 15, 2004 06:06 AMBush has cut taxes at least once per year -- to the tune of $1.7 trillion -- since he has been in office, cuts Prescott described as "pretty small."
"Tax rates were not cut enough," Prescott said, adding lower tax rates have historically provided a greater incentive to work.
Reagan's 1986 across-the-board cut, Prescott said, lowered U.S. tax rates while collecting the same revenue. "In the early '90s the economy was depressed by the tax increase in '93 by about 4 percent, and it's right at that level now," Prescott said.