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Politics : Politics for Pros- moderated
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To: JohnM who wrote (126958)7/22/2005 8:49:21 PM
From: Ilaine  Read Replies (4) of 793712
 
I'm giving it to you in tiny spoonfuls.

First step. Cutting taxes is better for business.

Second step. When business is good, when the pie is bigger, the government gets a bigger piece of pie. Even though it's a smaller share, a smaller piece of a bigger pie is bigger than a bigger piece of a smaller pie.

It's only counter-intuitive to you because you hate the idea that doing something good for business can be good for the economy.

Kennedy understood it.

Caveat: some taxes are necessary. Cutting taxes to zero is counterproductive. Nobody really knows exactly what the "right" amount is. But raising taxes in a recession is a sure fire way to turn it into a depression.
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