by Shanea Watkins
The Heritage Foundation
October 23, 2008
A recent Heritage Foundation Center for Data Analysis report describes the economic outcomes that can be expected based on the presidential candidates’ proposed tax plans. The outcomes include the effects of these proposed policies on gross domestic product, disposable income, and employment growth over a 10-year period. The analysis finds that job growth under Senator John McCain’s (R–AZ) plan at the national level is more than two times faster than job growth under Senator Barack Obama’s (D–IL) plan. Job creation grows faster in McCain’s plan because of the plan’s pro-growth provisions. Obama’s plan relies chiefly on a series of tax credits in order to redistribute income. These credits will serve to boost consumption, but will not boost business investment, which influences employment outcomes in other sectors of the economy.



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