Paul Krugman’s most recent blog post has a great chart highlighting Bush’s dismal record of job creation, comparing it to job creation during the Clinton administration:
According to a study by the non-partisan Congressional Budget Office on policy responses to short-term economic weakness, the focal point of McCain’s plan, a cut in the corporate tax rate, is fundamentally flawed:
The most common form of a general cut in business taxes is a reduction in the corporate tax rate. This approach, however, is not a particularly cost-effective method of stimulating business spending: Increasing the after-tax income of businesses typically does not create an incentive for them to spend more on labor or to produce more, because production depends on the ability to sell output.
So let’s connect the dots. McCain wants to follow Bush’s lead on tax cuts — not only extend them past their 2010 expiration, but deepen them further by cutting the corporate rate from 35 percent down to 25 percent. A cut in the corporate tax rate is not only an inefficient means of creating jobs, but as Krugman and Madland point out, the Bush tax cuts for the wealthy have resulted in embarrassingly low levels of job creation.
So unless John McCain is running against Herbert Hoover in the fall, any competitor will find themselves with greater “emphasis on job creation” than the Maverick from Arizona.