Nobel Prize Winner Praises Bush Tax Cuts

I wonder how John Kerry will try and spin this.

Nobel Laureate calls for more US tax cuts

Washington - Edward Prescott, who picked up the Nobel Prize for Economics on Monday, said President George Bush's tax rate cuts were "pretty small" and should have been bigger.

"What Bush has done has been not very big, it's pretty small," Prescott said.

"Tax rates were not cut enough," said Prescott.

Lower tax rates provided an incentive to work, Prescott said.

Prescott and Norwegian Finn Kydland won the 2004 Nobel Economics Prize for research into the forces behind business cycles.

The American analyst, who is a professor at Arizona State University and a researcher at the Federal Reserve Bank of Minneapolis, said a large tax cut in 1986 had lowered rates while collecting the same revenue.

But "in the early nineties the economy was depressed by the tax increase in 1993 by about four percent, and it's right at that level now," Prescott said.

Bush, who is fighting to get re-elected on November 2, has cut taxes by about $1,7-trillion during his term.

The US leader accuses his Democratic rival John Kerry of favoring tax increases, despite Kerry's promise to cut taxes for everyone earning less than 200 000 dollars a year. - Sapa-AFP

What he trying not to say is that if Clinton had CUT taxes we would have had an even BETTER economy in the 90's.