re: Tax rate reductions spurring the economy and resulting in higher revenues is nothing new
The best long term policy is fiscal restraint during growth and deficit spending during slow downs. Economic growth in good times will make any debt accrued in bad times virtually insignificant. We actually have been (more or less) getting it right for the last dozen years as far as government spending. The Clinton boom years were also characterized by fiscal restraint which led to huge surpluses. The Bush bust has coincided with huge increases in government spending. Typical keynesian economics. Now it remains to be seen if government spending will be reigned in now that the business cycle is back on the upswing. I suspect that may have to wait for the next prez.