An economist is warning in a newly published academic paper studying the American economy after World War II that "tax increases are highly contractionary." According to the paper, "the effects are strongly significant, highly robust." Who is the lead author of the paper? Why, none other than the chairman of President Obama's Council of Economic Advisers, Christina Romer. You'd think she might want to mention this to her boss in connection with the tax increases that are scheduled to take effect in 2011.
Paul Caron's Tax Prof blog has the details.