Senate Democrats

CBO: Democratic Jobs Plan Will Work Republican One Won’t

Yesterday, CBO released its evaluation of different approaches to creating jobs and promoting economic growth, illustrated in the chart below.  The CBO concludes that measures that would reduce the cost of hiring (employer payroll tax cut) or put money in the pocket of those who would spend it (unemployment insurance, payroll tax cut, middle class tax relief) would be the most effective.

The CBO also evaluated GOP claims that reducing regulation would create jobs and concludes that “the economic effects of those specific changes would probably be too small or would occur too slowly to significantly affect overall output or employment in the next two years.”  The CBO even concluded that some of the policies that the GOP is advocating would lower economic growth and cost jobs.