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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (25653)2/4/2008 3:44:50 PM
From: TimF  Read Replies (1) of 71588
 
Its not so simple.

If you hold taxes constant, deficits enable more government spending.

If you hold spending constant deficits enable lower taxes (only temporarily, eventually the debt gets paid back, and even if you keep rolling it over the interest has to be paid).

The bottom line is not every action that causes a deficit works towards or encourages growth in government spending. Tax cuts, esp. in the short run, often increase deficits, but they don't encourage larger government, and if you have never met anyone who doesn't think that tax cuts encourage larger government than you have only met a rather odd group of people.
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