The Great Lie Of Supply-Side Economics
Saying today that tax cuts will increase tax revenues is not like saying that bombing Iran constitutes a sensible foreign policy, or that education vouchers will wreck the public schools. It’s more like saying that the best way to treat sick people is to

by Acheron 760 Reads
on Tue Oct 23 2007 Add to your ClipSwarm
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dinozoaWed Oct 24
 
My beef with this article is it puts all tax cuts under the umbrella of supply-side tax cuts. Supply-side economics, as far as I've ever learned, focuses on tax cuts on investments, like par example, Bush's capital gains tax cuts early in his presidency. The author condemns all tax cuts.
 
 
LOkiThu Oct 25
 
'To begin with, the absurd idea that tax cuts pay for themselves is based on an idea that is not at all absurd, which is that tax rates can have an impact on people’s behavior. Increase taxes too much, and people may work less (since they get to keep less of the income they earn) and invest less (since their gains will be taxed more heavily), and so the economy will grow more slowly. The opposite can happen if you cut taxes. '
What is really absurd is the idea that kifing the earnings of one set of folks and giving those earnings to another set of folks that earned nothing, is less absurd than the 'idea that tax cuts pay for themselves'; that such kifing is good economics at all.
 
 
AcheronThu Oct 25
 
HAha saw that one coming
 
 


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