jt--That is called "Republican lag"...like the line that the economic growth of the '90s was due to the Republican led tax cuts of 1981 and 1986. Tax cuts don't take that long to kick in and truly only work in a very depressed economy. In any other scenario, they merely continue to increase deficits.
Isn't it interesting that after the 1993 tax increases, the deficits began to shrink, interest rates fell, which increased likelihood of business investment and also reduced federal interest on the debt, which reduced the deficit further, which helped keep interest rates down and so on and so on.
How ironic that Alan Greenspan,(Republican central banker and advisor to Nixon, Ford, Reagan, and Bush), believing that deficit reduction was THE key and that tax increases were necessary, had his plan finally accepted and implemented by Bill Clinton, a Democrat. This was of course, not Clinton's plan, it was Greenspan's plan, but Clinton was the first President to embrace it.
TG |
