Posted by taxguru on November 15, 2002
Continuing Debate
As the GOP takes over the Congress, there will be a lot of discussion over making the current tax cuts permanent. The foes of this will trot out their standard arguments that a tax cut hurts the economy and creates budget deficits. This static analysis of tax law changes, which I have discussed on several occasions, is just a theory and has in fact been debunked by the real life experience after the Reagan tax cuts of the 1980s. That proved that a dynamic look at the ripple effects of tax cuts is the only realistic way to analyze this kind of thing. We will be seeing an endless number of articles such as this, discussing this very point.
In a similar vein, this article has Alan Greenspan acknowledging that the current deficit would be much larger if there hadn’t been a tax cut. This is in total contrast with the liberals’ idiotic claim that the tax cuts caused the deficit.
KMK
Sorry, the comment form is closed at this time.
Tax Guru - Ker$tetter Letter 