Nation Would See More Jobs, Higher Incomes Under Bush Plan, Analysis Shows
WASHINGTON, MARCH 18, 2003
-Over the next five
years, President Bush's economic growth plan would create, on
average, more than 914,000 jobs annually across the country,
according to an econometric analysis released today by The Heritage
Foundation. The stimulus package would produce results almost
immediately, the analysis found, generating 997,000 new jobs next
Americans' personal savings also would grow by $111.5 billion next
year, say analysts in Heritage's Center for Data Analysis. Over the
next five years, nationwide personal savings would increase by an
average of $66.3 billion annually, and disposable income would rise
by an average of $141.4 billion per year under the Bush plan.
In evaluating the president's proposal, CDA analysts used what
economists call "dynamic" analysis-a method employed for years by
state governments, private businesses and Fortune 500 companies
that accounts for how people will react to changes in tax policy.
The method differs significantly from the "static" method the
Congressional Budget Office uses.
"Static" scorers don't account for predictable changes in behavior,
a position Heritage economist William Beach considers illogical.
"The critics running down the president's plan don't seem to
appreciate that when you cut taxes, you change how taxpayers
behave," he said. "The tax cuts included in the president's
proposal will strongly induce taxpayers to save more, spend more
and invest more."
More state-by-state numbers can be found online at " on taxes.