| Norris2k said:
The real questions, and that's a whole different level : can you generate growth and cut spending enough to pay back what you loose in term of taxes, can you generate growth enough to have a significant impact on the economy, and how much government spending cut will negatively impact the economy. This is very difficult to assess, especially because it can't be just reduced to just tax cuts, it's a kind of new deal : spending cuts, trade barriers, public investment in infrastructure, etc. It is very dynamic and complex. Simple example, if you create one job, this person can spend more, pays more taxes, cost less (food stamps, etc.), and also contribute to the economy, and that creates a more favorable environment for more jobs. |
Let us face the facts though. The Bush tax cuts didn't really spur the economy as much as promised and we quickly went into the red after having a budget surplus from 98-01. The problem with cutting taxes is that it is all just up to speculation. Can we create new jobs... Will they create new jobs... Well last time it didn't happen. I suppose if we didn't start the two wars we might have been in better shape. Then the 08 crash happened and shit hit the fan.
