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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (294469)7/21/2006 2:32:11 AM
From: tejek  Read Replies (1) of 1572510
 
tax cuts "do not pay for themselves as a general rule"

Depends on the time frame your talking about. Over the course of an administration maybe not, at least if the rates aren't extremely high to start and if they are general income tax rates rather than something like capital gains cuts. Over the long run however tax cuts generally will pay for themselves if sustained. But politicians and appointed officials don't generally talk about such effects over the long run. After all they probably will no longer be in their position by then, and they might not even be alive.

If tax cuts don't generate benefits within two years after implementation, then I think its pretty safe to say they are not very effective.
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