Bunker Mulligan "Let us endeavor so to live that when we come to die even the undertaker will be sorry." ~Mark Twain

Jim Angle, filling in for my favorite Brit Hume, interviewed Mr. Altman about Kerry’s proposed corporate tax plan. It was interesting. Angle asked good questions, and kept the interview on-topic.

He asked the question politicians never want to answer: How? Job creation estimates are based on economic growth, is that the same metric you use?

Altman said the program figures a growth rate of 3.5% which will create 10 million jobs. Angle was quick to point out that the current growth rate is over 4%. Does that mean Kerry expects to increase that to 7.5%?

No. 3.5% will do quite nicely. But it’s at 4% right now. Yes, but that’s only recent. Bush’s term numbers are much lower.

Altman then explained how corporate earnings overseas are taxed at a rate 10% lower than those earned in the US. Therefore, American jobs are going overseas.

Am I a better economist than Kerry’s economic advisor? Earnings aren’t job-based, but sales-based. Any jobs overseas must remain there if we intend to sell there. If we raise the rate, will that not increase the trade deficit?

Angle didn’t ask the question. Damn.

All-in-all, Angle asked good questions, and Altman seemed to be a bit out of his element. It appeared he expected to come in and simply lay out the plan using prepared notes. Perhaps he was simply nervous. But he wasn’t impressive, and I don’t think this has been well thought out except to make a move toward the center.

UPDATE: John Ray has posted Dick McDonald’s analysis of the Kerry corporate tax plan. He quotes tax law, and shows how this change will actually move more jobs overseas. Maybe Altman is even more confused than I thought.