Why these economists say Hillary Clinton’s tax hike could create jobs
By Max Ehrenfreund and Jim Tankersley at WP
https://www.washingtonpost.com/news/wonk/wp/2016/10/27/why-these-economists-say-hillary-clintons-tax-hike-could-create-jobs/
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But economic forecasters say neglecting debt-reduction will limit the next president's ability to address two of voters' top issues: growing the economy and creating jobs. In the view of these forecasters, one way to grow the economy is by raising taxes to reduce the debt.
These forecasters are relying on new computer models that use sophisticated mathematical techniques, collectively known as "dynamic scoring," to simulate the effect of a new policy on the broader economy. According to new dynamic projections from the Tax Policy Center, Clinton's plan to increase taxes would help the economy over the long term if the revenue was used to reduce the deficit, while Trump's plan to reduce taxes would prove counterproductive.
The projections are based on a model developed by economists at the University of Pennsylvania that assumes that reduced borrowing by the government will result in cheaper rates of interest for everyone, thereby boosting the economy -- an assumption some economists in both parties would dispute.
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