Article on why tax cuts raise the deficit

[David]

http://finance.yahoo.com/columnist/article/economist/4065

[Jim Richards]

I think the B2 admin was assuming spending cuts, too. that's funny since he was planning on war with Iraq before he came into office. Ignoring that, though, deep gov't spending cuts need to also take place for any hope of this avoiding gov't debt spiraling out of control.

[Rodeo]

Shhhh!

The "conservatives" are busy building a bridge to nowhere, along with 6,500 other bribes ... errrr .... earmarks.

I love the latest "conservative" plan:

"We'll borrow $100 from the Chinese and give it to you! If we do that will you then vote for us again?"

[Seahawk]

Originally posted by Rodeo
Shhhh!

The "conservatives" are busy building a bridge to nowhere, along with 6,500 other bribes ... errrr .... earmarks.

I love the latest "conservative" plan:

Pork knows no political boundaries.

http://www.heritage.org/Research/Taxes/wm182.cfm

[turbo6bar]

I feel there is nothing wrong with lowering taxes as long as there is a corresponding reduction in spending. Given the government's inherent ability to waste money, a reduction in spending isn't far-fetched.

They're all crooks. They have no conscience.

[Seahawk]

Originally posted by turbo6bar
I feel there is nothing wrong with lowering taxes as long as there is a corresponding reduction in spending. Given the government's inherent ability to waste money, a reduction in spending isn't far-fetched.

They're all crooks. They have no conscience.

The original article was very static in analysis, and actually opened with a disclaimer: Tax cuts work, just not at low marginal tax rates, which the author claims exist today.

I happen to disagree that our tax rates are marginal, that the government spends our money wisely. Witness the emergence of earmarked funding.

He further ignores the elasticity of money, especially in the hands of consumers...his rationale is fine, just not very dynamic.

The article I linked gives all the credit to tax cuts and ignores many of variables in the economy as inherited by Reagan which improved: extremely high interests rates, high marginal tax rates, very few "earmarks" and pent-up consumer demand when high unemployment was lowered.

Tax cuts in the Reagan era contributed to an increase in tax revenue, but were not the only element in the revenue stream: lowering of interest rates and unemployment are two.

Focus on spending, and who wants your money...then vote the bastards out, regardless of their party affiliation.