Stealth stimulus with tax cuts, but need growth policy

The tax cut is stealth stimulus. Obama stimulus II. How long are we going to call these temporary tax cuts that will last a decade the Bush cuts? Should they now be called the Obama temporary tax cuts?

The payroll tax not for employer but for employees for one year.The extension of the tax cuts reduces uncertainty but cannot be viewed as a new addition for business growth. A number of other tax credits from the first stimulus package will be extended. Unemployment benefits will be extended.

But what about a growth policy?

• A credible growth policy will see clear tax rates which will be in place long enough to allow businesses to make longer-term investment decisions.
• Elimination of tax rules which increase the cost of filing and tracking. Tax accountants should not be highly paid professionals.
  
• Clear sense of regulations so rule uncertainty is diminished.
• Not short-term incentives for hiring but ways of allowing businesses to make profits and then hire workers.

It is unlikely we will see this kind of tax and growth policies.