We could do nothing in regards to tax cuts and cancel the ones passed in 2001. With the spending going on in Congress (and both sides are guilty, not just the Republicans - only an idiot would argue otherwise), the economy will at best continue to limp along as it is now.
We could balance the budget today with spending cuts, but we both know that isn't going to happen. Politicans of both sides love to buy votes by spending other peoples' money. They aren't going to stop.
We could increase taxes. Sure, that's the ticket. We take more money out of individual families and businesses, send it to DC so they will increase spending even more. Yeah, tax our way to prosperity, that'll work. And pigs can fly.
Historically, tax rate reductions have stimulated the economy which increases revenues. It happened in the 1960s and again in the 1980s. It can happen again. The real trick would be to get a handle on spending. As long as spending grows faster than revenues (as it did in the 1980s), then deficits will be inevitable.
Current Events » in reply to Voodoo economics
Consider the alternatives to tax cuts
The whole thread (34 posts)
- Squandering Prosperity
- Another point of view
- Nice Change Of Pace
- Don Quixote, please tell us what policy will cure a natural move in the economic cycle