SUSIE GHARIB: Tonight's commentator weighs in on fixing the economy and boosting jobs. He's Glenn Hubbard, dean of Columbia's Graduate School of Business and former economic adviser to President George W. Bush.
GLENN HUBBARD, DEAN, COLUMBIA GRADUATE SCHOOL OF BUSINESS: The economy's sputtering performance has brought forth calls for more stimulus. A more potent and longer-lasting tonic lies elsewhere: tax reform. Fundamental tax reform, broadening the tax base and lowering tax rates to encourage saving, investment, and job creation, can add between a half and a full percentage point to growth each year over a decade. It will also reduce uncertainty over tax policy, hindering business investment in equipment and people. These benefits can help bring unemployment back to pre-financial-crisis levels over several years. Growth is the medicine the economy needs, and tax reform is Washington's best tool. And a reformed tax system would make tax increases for deficit reduction less costly to the economy. Economists have long championed tax reform. The Bowles-Simpson Commission teed up an option to consider with a broad base and low rates. Other good options are ready too. And benefits for job creation should be front and center. Why not now? I'm Glenn Hubbard.
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Nightly Business Report - The Stimulus Solution
GLENN HUBBARD, DEAN, COLUMBIA GRADUATE SCHOOL OF BUSINESS: The economy's sputtering performance has brought forth calls for more stimulus. A more potent and longer-lasting tonic lies elsewhere: tax reform. Fundamental tax reform, broadening the tax base and lowering tax rates to encourage saving, investment, and job creation, can add between a half and a full percentage point to growth each year over a decade. It will also reduce uncertainty over tax policy, hindering business investment in equipment and people. These benefits can help bring unemployment back to pre-financial-crisis levels over several years. Growth is the medicine the economy needs, and tax reform is Washington's best tool. And a reformed tax system would make tax increases for deficit reduction less costly to the economy. Economists have long championed tax reform. The Bowles-Simpson Commission teed up an option to consider with a broad base and low rates. Other good options are ready too. And benefits for job creation should be front and center. Why not now? I'm Glenn Hubbard.