In addition to all of the criticism the administration is coming under for the details of its reform ideas, the timing is also a big issue. Gary Becker, Steven Davis, and Kevin Murphy write about how the uncertainty caused by the government’s pushes for stimulus money to their pet projects and legislation to reform taxes and healthcare are slowing the recovery from the recession:

In terms of discouraging a rapid recovery, other government proposals created greater uncertainty and risk for businesses and investors. These include plans to increase greatly marginal tax rates for higher incomes. In addition, discussions at the Copenhagen conference and by the president to impose high taxes on carbon dioxide emissions must surely discourage investments in refineries, power plants, factories and other businesses that are big emitters of greenhouse gases.

We need to be encouraging hiring and investment with a future full of growth and big profits, not high taxes and entitlements.

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