Tax Cuts Aren't the Only Way Out of Recession

Considering the horrendous housing market and a struggling stock market, the economy will play an important role in the presidential election in the fall. Republican John McCain will argue that tax cuts stimulate the economy. Democrats -- either Barack Obama or Hillary Clinton -- will support raising some taxes on the wealthy.

What effect do tax cuts have on the economy? A new study from the Center on Budget and Policy Priorities on the economic expansion from 2001 to 2007 throws light on the issue. It shows that the expansion lagged past expansions in every respect, except corporate profits.

That is bad news for the average voter, and it may appear worse to them in light of a weakening economy. ...