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Current Events » in reply to Reagan's Caused Big Deficits

Re: Reagan's Caused Big Deficits

Tax revenues went through the roof after the Reagan cuts, as they did with the JFK cuts.

Until proven otherwise, tax cuts are a proven method to boost revenue. The reason is clear to me but obviously not so clear to others.

As you point out, increased revenue does not solve unbridled spending but under any circumstances the deficits are smaller than they would have been with no tax cut and the same spending.

Is there a point where the cuts would be excessive? I assume there would be such a point. We have reached the point that interest rate reductions are pointless and I imagine that tax cuts would also reach a point of diminishing returns. I would have to leave that to the econ gurus. Preferably the gurus that favor tax cuts.

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