Republican House Minority Leader John Boehner recently proposed a two-step job creation plan consisting of a full extension of Bush-era tax changes and cuts to domestic spending. His plan calls on Congress to cut non-security related spending back to fiscal year 2008 levels and to enact a two-year freeze on all current tax rates.
Rep. Boehner claims these two policies will drive job growth more than any proposal of President Obama’s. However, we find that this proposal would have a devastating impact on the struggling U.S. labor market while negligibly improving the fiscal outlook.