Barro: Stimulus Is A "Terrible Piece of Legislation"
Washington, DC-- Robert Barro, Professor of Economics at Harvard University, criticizes the recently passed federal stimulus package as a "terrible piece of legislation," and calls for permanent changes to the tax structure to spur economic growth.
"What they call tax reductions in this bill are really transfer payments, particularly redistribution of income from the rich to the poor," says Barro. "I don't think it's really attractive to do something in a temporary fashion. You want to have a more stable tax structure."
Barro also makes recommendations to lawmakers regarding long-term economic incentives to drive economic expansion.
"Abolishing the corporate income tax at the federal level I think would be very positive. It's a very poor form of taxation," says Barro. "I would make permanent the kinds of changes that were in the 2003 tax reform, including the marginal tax rate structure."