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Politics : Al Gore vs George Bush: the moderate's perspective
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To: American Spirit who wrote (2626)10/16/2000 11:56:35 AM
From: TimF  Read Replies (1) of 10042
 
Wrong, only spending can actually increase the debt. With zero spending there could be zero increase of the debt. Since it is difficult politically to cut programs the practical effect of tax cuts can be to increase the deficit but that does not mean that tax cuts are spending, they are not.

AS, as long as the optomistic projections that both canidates make come true revenue will increase more then the
amount needed for the tax cuts. It is true that in some ways the estimates are optomistic but they use static analysis in that they don't account for additional growth that might be generated by the tax cuts. If the economy does not continue to grow at a good pace then under either canidates plan, their will be deficits. I would favor cutting programs to prevent these deficits (I would start with eliminateing most government subsidies). But if it became nesserary to raise taxes it would be easier to do that then to eliminate the new programs that Gore porposes.

If you have a surplus, it is likely to disapear due to new
spending. Politicians want to spend money, it gives them more poer and helps there chances of relection (because voters like to get their goodies from government). If you do not cut taxes spending will go up. Then when the conditions that cuased the surplus went away you will actually have a deficit and it will be very difficult to get rid of the new programs.
If instead you lower taxes, you have the advantage that the tax cuts might help the economy continue to grow. You also have the advantage that tax cuts are easier to reverse politically then new entitlement programs. A third advantage is that if tax raises are needed it is less painful to raise taxes from the lowered rates then it would be to raise them from an allready high base.

Tim
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